Shougang Says Iron Ore Prices May Decline as New Supply Starts

Mar 27, 2012 -- Shougang Corp., the sixth largest steelmaker in China by production, says iron ore prices may fall to "reasonable levels” as new supply of the steelmaking ingredient comes onstream.

"We think prices are still too high,” President Wang Qinghai said today in an interview in Singapore, without providing further details. Prices have gained 5.2 percent this year.

Chinese steelmakers are in a difficult situation because prices of steel products haven’t changed significantly, he said. The company is studying overseas acquisitions, especially in iron ore, and haven’t identified any targets yet, he said.