hot iron steel glow

Chinese iron ore prices fall 10% amid fears that lockdown measures will depress demand

Prices of Chinese iron ore futures fell early today. Investors feared that the zero Covid 19 policy will slow down the recovery in the industrial sector after the increase in the number of infections in China.

Iron ore futures fell 10% to 754.5 yuan ($112.33) a tone, the biggest single-day drop since August.

Last week, Chinese officials declared that Shanghai residents are required to get tested weekly for COVID-19.

Although the lockdown has been relaxed, construction activity in China has been slow to recover, and manufacturers are reluctant to resume operations for fear of new coronavirus cases.

The Fitch analyst explained that while the Chinese government is trying to stimulate the economy and ease monetary policy, steel demand is showing no signs of recovery.

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