Iron ore price drops to $ 70

Iron ore import prices fell after Australia's leading supplier raised concerns about the strength of demand from the country, which consumes more than two-thirds of the seaborne trade in iron ore.

The Reserve Bank of Australia entered the discussion on iron ore price direction on Tuesday with the release of the minutes of the September central bank meeting:
China, with the world's largest population, has achieved the same level of steel production per capita as in industrialized countries. Iron ore prices were maintained at higher levels due to strong demand for steel in China. However, prices are expected to fall in the coming period due to the continued expansion of the global iron ore supply over an extended period of strong investment.

Members also noted that China's per capita steel production is likely to be close to its peak and that China's growth in steel production will not contribute significantly to global iron ore demand in the future. Participants noted that in the long term, India's potential could have a significant impact on commodity markets as investment in housing and transport infrastructure increased.

China produces as much steel and sheet metal as the rest of the world. Data released yesterday by the China Steel Industry Association showed that plant production hit a record in August.

But the rapid growth was largely driven by an expected cut in production - up to 50% in Hebei province during the winter months - to ease pollution problems in major cities. This could lead to a sharp decline in demand for iron ore, especially as stocks in the country's ports remain close to record levels above 130 million tons.