Steel futures plummeted Monday and iron ore was traded close to its lowest point of the year as fears over the robustness of the Chinese economy spread. China’s finance minister, Lou Jiwei, did not help calm the markets, when he re-affirmed that Beijing’s goal is for wider reform, rather than stimulus to maintain growth, Kallanish notes.

Lou, speaking at a meeting of the Group of 20 leading world economies in Cairns, Australia on Sunday, said any single economic indicator would not be enough to change government policy. He added that China could not rely on government spending to ease its economic woes.

Little wonder then that rebar futures, with no other support left to lean on, started the day down over Yuan 30/tonne - a decline that grew as the day progressed. The January 2015 rebar contract on the Shanghai Futures Exchange closed the day down Yuan 110/t at Yuan 2,619/t ($426/t), an all-time low since the exchange opened in 2009. The same contract for hot rolled coil also fell Yuan 106/t over the day to Yuan 2,792/t.

Iron ore went the same way, with trading on the GlobalORE trading platform brushing the $80/dry metric tonne barrier. 170,000t of 62% Fe PB fines were traded at $80.50/dmt cfr Qingdao for November delivery on Monday morning, $6.50/dmt lower than a similar cargo traded a week earlier. In the afternoon a 170,000t cargo of 62% Fe MNP fines was traded at $79.80/dmt cfr Qingdao for October delivery, down $4.70/dmt from the last trade the previous Monday. No other trades had been concluded by 17.00 Beijing time.