Iron ore is at its lowest level in the last 10 months!

Iron ore slid to a 10-month low on concerns that the latest pandemic curb in China will hamper the country's economic recovery.

Steelmaking raw material fell below $94 a tonne on Friday after closing the previous session down 5.1 percent. Iron ore has lost nearly 12 percent so far this week, marking its biggest drop since mid-July.

The decision to close in the mega city of Chengdu comes as China enters its peak construction season in September and October. Market watchers had hoped it would pull the real estate industry out of nearly a year of turmoil and bring steel prices to a bottom, especially after the nation's builders posted their worst first-half earnings since the 2008 financial crisis.

Demand for construction-related steel in China will be tested by how quickly re-emerging pandemics can be eradicated and how severe quarantines will impact business activities.

Benxi Iron & Steel Group, one of the steel producers, announced in a memo shared on its social media account that it will cut its factory staff in half in order to prevent the spread of the virus. It is stated that if other major factory operators take a similar decision, steel production and iron ore demand may be further affected.