Iron ore prices on the Dalian Commodity Exchange not only fail to extend Friday’s corrective pullback but also drops more 6.0% while taking offers towards $124.00 heading into Monday’s European session.
The metal’s latest weakness takes clues from the downbeat China trade numbers. “China's April iron ore imports fell 1.4% from a month earlier, official customs data showed on Monday, as overall purchases were impaired by lean demand at mills while the pandemic situation still disrupted shipments,” said Reuters.
Worsening covid conditions in China drown commodity demand from the world’s biggest customer. The latest activity restrictions in Beijing and Shanghai, the dragon nation’s major cities, weigh on investor sentiment and commodity prices.
