China is trying to revive its economy. We just got a sign it is not going to plan

Iron ore prices have tumbled over the past fortnight amid a glut of Chinese steel that hints at a failure of China’s attempts to stimulate an economy weakened by its zero tolerance approach to outbreaks of COVID-19.

Two weeks ago iron ore was trading around $US145 a tonne. This week it has traded as low as $US111.35 a tonne, a dramatic fall from the $US161 a tonne peak this year reached in April and way below the $US230 a tonne prices seen a year ago.