China exchange traded funds fell more than 2% on Tuesday after the country raised fuel prices and a BHP Billiton (NYSE: BHP) executive said China’s steel production is slowing.
The $6.4 billion iShares FTSE China 25 Index Fund (NYSEArca: FXI) slipped 2.2% in early trading. The ETF is up about 9% year to date.
“China, the world’s biggest energy consumer and steelmaker, is raising fuel prices for the second time in less than six weeks,” Bloomberg News reports.
“There will be some sort of slowdown coming out of China and the Asian economies,” said Tim Price at PFP Group, in the report. “It can definitely take the heat out of the commodities markets.”