Iron ore can drop to $ 50

Iron ore re-entered the downtrend after the publication of the largest weekly price loss in 16 months amid concerns that record demand in China could weaken as steel production cuts in winter are introduced and the economy could slow growth. This will mean lower demand for iron ore.

Prices fell more than 20 percent, peaking at around $ 80 per tonne in August, setting a new direction for the market to fall further. According to the latest data, the 62 percent iron ore in Qingdao fell 0.8 percent to $ 63.06 a tonne. Low-grade 58 percent ore plunged to $ 30.

Iron ore has gone into retreat after a tumultuous year, with a sharp rise in prices in February and again in June-August, only for the profit to be pushed back. While steel production in China is at a record pace aiding iron ore, politicians are planning to cut production for the winter to contain pollution. Last week, Australia's central bank predicted lower iron ore prices, noting risks including rising supplies, as well as concerns that China may be approaching peak steel production levels.

Prices for sheet steel and rebar in China, which account for half of global production, are losing ground after hitting multi-year highs undermining demand for iron ore. In Shanghai, rebar futures fell 6.6 percent last week and hot rolled steel contract fell 7.4 percent, the biggest loss since May.