China's Spot Iron Ore Prices Fall 12% This Week on Weak Demand

By Helen Yuan

Oct. 17 (Bloomberg) -- Cash prices of iron ore imported by China, the world's biggest buyer, fell 12 percent to a 19-month low because of weaker demand from steelmakers.

Prices at Qingdao, China's biggest port handling the steelmaking ingredient, tumbled 100 yuan to 720 yuan ($105) a metric ton, the lowest since the week of March 16, 2007, 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. Shougang Corp., Jiangsu Shagang Group Co. and other Chinese steelmakers have said they are slowing orders because of high stockpiles and lower demand.


The Chinese price of hot-rolled coil, a benchmark steel product, kept falling in the past month, dropping 39 percent to 3,645 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 13 percent to 700 yuan a ton this week, Antaike said.

China buys most of its spot iron ore from Indian mining companies.

To contact the reporter for this story: Helen Yuan in Shanghai at hyuan@bloomberg.net