Iron ore edges lower with traders’ hopes pinned on trade talks

Iron ore declined for a second day, as traders watched for any progress from US-China trade talks and potential stimulus from Beijing that could reignite buying interest in the steelmaking material.

Futures in Singapore fell to as low as $94 a ton. Talks between the US and China will continue into a second day in London as the two countries seek to address trade imbalances and deescalate from an all-out trade war that’s raised concerns about global economic growth.

A long-term headwind for prices has been China’s declining demand for steel, as the industry faces the lingering affects from the property crisis. While the sector has entered its traditional off-season, mills’ profitability has remained stable, preventing worse declines for iron ore.

China’s steel market is waiting for direction from policymakers, according to Commonwealth Bank of Australia analyst Vivek Dhar, who said steel margins have tracked sideways within a tight range so far this year.

Beijing “will have to deploy significant stimulus to offset the impact of the US‑China trade war if China has any chance of reaching its target of ‘around 5%’ economic growth,” Dhar said in a note to investors.

Iron ore futures were 0.2% lower to $94.50 a ton as at 10:14 a.m. Singapore time. Yuan-priced futures on the Dalian exchange and Shanghai steel contracts edged lower.

© 2025 Bloomberg

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.