MINING.COM Staff Writer

“Sentiment had been buoyed by hopes that China is making progress towards an exit from strict lockdowns,” commodity strategists at ANZ said.

Fed Jerome Powell pledged that the US central bank would ratchet interest rates as high as needed to kill a surge in inflation.

Shanghai set out plans on Monday for the return of more normal life from June 1.

Shanghai set out plans on Monday for ending the covid-19 lockdown that has lasted more than six weeks.

Iron ore has fallen around a quarter from this year’s peak in early March as covid restrictions spread.

"Demand hopes have given way to demand concerns," said Commerzbank analyst Daniel Briesemann.

Shanghai said half the city had achieved “zero-COVID” status, but uncompromising restrictions had to remain in place under a national policy.

The US Federal Reserve approved a half-a-point interest rate hike, leading to a significant decline in commodities prices denominated in US dollars.

Investors are awaiting China’s April trade data due later in the session to gauge the scope of disruptions from covid-19 lockdowns.