Iron Ore’s Crash Tests Faith in China’s Stimulus Response

(Bloomberg) — The worsening in Chinese demand conditions over the near term has sent iron ore prices into a tailspin, and the outlook for the rest of the year could be just as bleak.

Futures plunged on Monday on fears that the fast-spreading omicron strain of the virus has taken hold in Beijing, and that ever more areas of the country are threatened by the severe restrictions that have paralyzed the financial hub of Shanghai. Iron ore led losses but none of the other major industrial commodities were spared, with China’s crude markets potentially facing their biggest demand shock since the start of the pandemic.