China sees 40% drop for iron ore

Despite global slowdown in demand for iron ore, China has imported 131 million tons in the first quarter, up 18.8% from last year. As Japan, South Korea and China engage in price negotiations with BHP Billiton, Vale and Rio Tinto, it appears that iron ore prices will drop 30%, 50% and 40% respectively. China is now relying mainly on imported iron ore, with 70% of China’s own mining capacity out of commission. Domestic mines that tend to be small scale and produce low grade iron can’t compete with significant price drops in materials and freight cost. Analysts say China could import as much as 100 million additional tons for the current listed price.

China iron-ore imports hit record 51 Mt, Mining Weekly

China increase China may expect iron ore prices to drop 40%, China Stakes