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Dec 08, 2015 · Due to a slowing Chinese economy, domestic demand for steel in China has declined by % in 2015, following on from a % decline in 2014. Despite the weakness in Chinese steel demand, the world's iron ore majors have invested heavily in boosting production capacity over the past few years.
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China's iron ore imports bounced back in May as steel mills that were idled during the winter months as part of a government drive against pollution, hit output records.
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Iron ore prices have slumped 30pc since February, to around 63 a tonne, their lowest level since November raising fears that the market could be set for another downturn. In 2015, prices touched an eightyear low of 38 a tonne, before retracing throughout 2016 to hit a high of 95 in February this year.
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"Steel mills are not very interested in lower grade iron ore now," said an iron ore buying official with a private steel mill. Rio Tinto's Pilbara fines typically grade percent, while BHP Billiton produces 63 percent grade Newman fines and 59 percent Yandi fines.
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