The iron ore price fell over 4% on Friday as risk aversion across financial markets escalated and investors assessed the demand prospects in top consumer China.
Benchmark 62% Fe fines imported into Northern China fell 4.2%, to $138.48 per tonne, the lowest since mid-March.
At a meeting held Thursday, the Politburo reiterated its support for a lockdown-dependent approach to contain the virus.
That follows President Xi Jinping’s commitment last week to boost infrastructure construction to rescue economic growth, which has come under pressure from the nation’s covid strategy.
“The meeting held yesterday revolved mainly around epidemic control,” said Wei Ying, a ferrous analyst at China Industrial Futures.
“This indicates that restrictions will hold in the near future, which has sparked some concerns” about the impact on the economy.”
