Iron ore fell below $100 a tonne in New York on Monday, and copper prices fell more than 3%, as China tightened restrictions on industrial activity and fears over the collapse of the country's biggest real estate developer grew.
China produces more steel than the rest of the world combined, and Beijing is imposing production restrictions this year as it works towards its goal of achieving carbon neutrality by 2060.
Copper for December delivery fell 3% from Friday's settlement price, reaching $4,116 per pound ($9,166 a ton) on the Comex market in New York by mid-Monday, hitting a one-month low. Copper prices hit a record high of more than $10,500 per ton in May.
Chinese real estate giant Evergrande is being crushed by a $300 billion debt burden, and a collapse could have ripple effects across the industry. Hong Kong's Hang Seng real estate index fell to its lowest level since 2016. The Chinese real estate and construction industries are the main driver of steel consumption and also account for about one-fifth of copper demand.
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