Chinese iron ore producers expecting price decline

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Oct 2008

Iron ore miners in China have been told to expect the first price cut in seven years, with steel production in China plunging. At a conference in the Chinese city of Quingdao, traders and bankers said a cut of 10-20 per cent was likely after annual contracts had been finalized. After this year’s record 85 per cent jump in iron ore prices, a price reduction would push down the price of vehicles, machinery and construction materials, contributing to lower inflationary pressures. Bankers said a price cut would only make a small dent in miners’ revenues as ore prices have jumped more than 300 per cent in the past five years.

Source: Birmingham Star