and other mining stocks collapsed Monday as iron ore futures fell to $100 a ton amid China’s continued move to curb steel production.
(ticker: CLF) fell 7.46% in premarket trading Monday to $20.23, while Freeport-McMoRan (FCX) fell nearly 6%.
United States Steel
(X) fell by 5.78%.
Futures for iron ore – the main ingredient of steel – traded at about $100 a ton early Monday. The metal’s spot price was $123, well below its record price of $233 per tonne in May.
China has pledged to limit steel production as it strives to reduce CO2 emissions. The country is the largest steel producer in the world.
A collapse in China’s real estate markets – triggered by fears of contagion from mounting problems at embattled real estate giant
China Evergrande Group
— also led metal markets and broader indices down.
Futures contracts linked to the Dow Jones Industrial Average were down 621 points, or 1.8%. The blue chip index fell 166 points on Friday to close at 34,585.
S&P 500 futures fell 1.56% and Nasdaq futures fell 1.44%.
Stocks in Hong Kong closed Monday with a loss of 3.3%. The markets in China and Japan were closed for the holidays.
Barron’s highlighted on Friday how cheap mining stocks were trading amid concerns that the good times in industrial commodities are ending.
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