By Kyunghee Park
Oct. 26 (Bloomberg) -- Cash prices of iron ore imported by China, the world's biggest buyer, fell 11 percent to an almost two- year low because of weaker demand from steelmakers.
Prices at Qingdao, China's biggest port handling the steelmaking ingredient, dropped 80 yuan to 640 yuan ($93) a metric ton in the week ended Oct. 24, the lowest since November 2006, according to Beijing Antaike Information Development Co.
Chinese mills have cut production as the economic slowdown and a global credit crunch curbed demand from automakers and builders. All steelmakers in the Asian country will be unprofitable in October after prices fell, Shan Shanghua, secretary general of the China Iron & Steel Association, said Oct. 23.
The Chinese price of hot-rolled coil, a benchmark steel product, has dropped 40 percent to 3,560 yuan a ton from a record 5,957 yuan on June 5, according to Antaike.
Cash prices for iron ore arriving at Beilun port, where Baoshan Steel receives shipments, dropped 11 percent to 620 yuan a ton last week, Antaike said.
China buys most of its spot iron ore from Indian mining companies.
To contact the reporter on this story: Kyunghee Park in Hong Kong at kpark3@bloomberg.net
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