The iron ore price fell below US$100 a tonne for the first time in over five weeks on signs that the crisis in China’s steel industry are worse.

62% Fe fines imported into Northern China were changing hands for US$98.63 a tonne now down 3%. The most-traded iron ore contract on China’s Dalian Commodity Exchange ended daytime trade 5% lower at 682 yuan (US$98.57) a tonne, having touched a one-week low of 680.50 yuan earlier in the session.

Steel prices also stretched losses after several Chinese cities, including Shenzhen and Dalian, escalated covid-19 restrictions to contain outbreaks. Steel production in the key center of Tangshan will fall by more than 8 million tonnes in the second half due to plans to restrict output. Chinese banks are facing losses as mortgage boycotts sweep the property sector, which is crucial to steel demand.