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BIZCHINA> Center

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Iron ore, steel prices may fall further

(Xinhua)
Updated: 2008-10-10 10:10

China's Ministry of Commerce on Thursday said the prices of iron ore and steel products have further room for slide following recent retreat.

Prices of domestic iron ore were at 1,200 yuan ($176) per ton at the end of September, 12.4 percent lower than a month ago on slumping shipping rate, the ministry said.

Prices of steel on average last month slid 5.9 percent month-on-month to 5,670 yuan per ton. The slide was because of falling production costs and weaken demand in economic slowdown.

Domestic iron ore supply is sufficient as the closures and production cuts in some steel mills have reduced demand for iron ore, it added.

Four leading steel makers, including Shougang Group, Hebei Iron and Steel Group, Shandong Iron and Steel Group and Anyang Iron and Steel Group.will slash 20 percent of their production this month amid slack domestic demand and dropping steel prices, Monday's China Securities Journal reported.

(For more biz stories, please visit Industries)

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