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A coil of steel.

Tom Mihalek/Getty Images


Cleveland-Cliffs
,


Freeport-McMoRan

and other mining stocks slumped Monday as iron ore futures dropped to $100 a ton amid China’s continued move to curb steel production


Cleveland-Cliffs

(ticker: CLF) dropped 7.5% on Monday to $20.22, while Freeport-McMoRan (FCX) fell 5.1%.


United States Steel

(X) was down 5.62%.

Futures for iron ore — steel’s key ingredient — traded at about $100 a ton early Monday. The metal’s spot price was at $123, way off its record high price of $233 a ton in May.

China has pledged to limit steel output as it looks to reduce carbon emissions.  The country is the world’s biggest steel producer.

A slump in China’s property markets — brought on by contagion fears from the mounting problems at embattled property giant


China Evergrande Group

— also led metals markets and broader indexes lower.

The Dow Jones Industrial Average fell 398 points, or 1.15%, to 34,186. The S&P 500 dropped 1.21% and the Nasdaq slumped 1.51%.

Stocks in Hong Kong finished Monday with a loss of 3.3%. Markets in China and Japan were closed for a holiday.

Barron’s highlighted on Friday how cheaply mining stocks have been trading amid worries that the good times in industrial commodities are ending.

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