Iron ore price slides as China’s economy slows

The iron ore price fell on Monday on signs of continuing economic weakness in China.

The drop came despite a surprise easing of monetary policy by the Chinese central bank and also weighed on other Dalian steelmaking inputs and steel futures in Shanghai.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $125.65 a tonne during morning trading, down 2% compared to Friday’s closing.

Iron ore’s most-traded May contract on China’s Dalian Commodity Exchange ended daytime trading 2.4% lower at 705 yuan ($111.12) a tonne, near a session low of 700 yuan, its lowest since January 10.

China’s central bank cut the borrowing costs of its medium-term loans for the first time since April 2020, suggesting an intensifying economic slowdown, even as the world’s second-biggest economy posted a faster-than-expected annual growth of 4% in the last quarter of 2021.