Iron ore prices fell to the lowest level in six months

Prices for iron ore, one of the world of the most effective industrial goods, fell to the lowest level in six months, as Chinese buyers retreated from the market due to growing reserves.

Reducing prices is good news for consumers such as Asian manufacturers of steel, but this challenges mining companies such as Rio Tinto PLC, which make billions of dollars to increase the production of iron ore, mainly in anticipation of healthy demand from China.

The production of steel in China, which boughts every three of the five tons of iron ore and transports by sea, has slowed down since September last year, partially in response to the country's leadership measures to reduce the potential of the industry and environmental pollution. The numbers show that China’s growth has currently cooled slightly.

The global iron ore port of Tianjin in China reduced the purchase price by 2 percent to 124.80 dollars per ton on Monday, which has become the weakest level since July last year.
Iron ore currently fell in price to 7 percent of the beginning of the year, decreasing each of the last 11 trade days.

The decline in iron ore prices contributed to a decrease in Rio Tinto shares, the second largest in the world of an iron ore miner, by 1.0 percent on Tuesday, while the opponent of Fortescue Metals Group decreased by 4.6 percent.

This is contrary to the historical trends of this time of the year, when prices hold firmly, or even rising, since winter will be more difficult to complicate the operation of the ports and the weekly celebration of the Lunar New Year is approaching, which begins relatively early this year, January 31.