Iron ore prices tumble towards $100 as demand from China declines

Iron ore prices sank to a seven-month low, with the demand outlook dimming on fears China may again impose strict Covid-19 curbs that hurt construction activity. 

Market watchers are monitoring the government’s response as the daily virus caseload in Shanghai grows, topping 50 for the fourth straight day. 

A more contagious sub-strain of the omicron variant has triggered additional mass testing amid the flare-ups, and close to 30 million people nationwide are under some form of movement restrictions. 

There’s concerns that more intense curbs could pile pressure on the still-struggling property sector, or complicate the roll-out of infrastructure stimulus. 

Dollar bonds of China’s real-estate developers plunged Tuesday.