The benchmark August iron-ore on the Singapore Exchange was 0.84% higher at $99.75 a ton.
After a meeting in Beijing, Australian Prime Minister Anthony Albanese and Chinese President Xi Jinping agreed to a new Policy Dialogue on Steel Decarbonisation that would give Australia insight into Chinese government planning.
Albanese also said a decade-old free trade agreement with China, Australia's largest trade partner, would be reviewed.
With Australia's exports to China dominated by iron ore, Albanese travelled with executives from mining giants Rio Tinto, BHP, and Fortescue who met Chinese steel industry officials on Monday.
Top iron-ore producer Rio Tinto reported a 13% quarter-on-quarter increase in shipments and its strongest second-quarter production since 2018.
Demand for steel in the manufacturing industry remains high, while expectations of supply-side policy actions have also driven prices, broker Galaxy Futures said in a note.
