BEIJING (Scrap Monster): The iron ore with content rate of 62 percent delivered to the port of Qingdao declined to 70.20 dollars per tonne, lowering 6.8 percent in the present week. According to the  data, the present value of iron ore is the lowest since the year 2009. For per dry tonne, the price declined to about 70.31 dollars lowering 0.9 percent.

 

This year the value of iron ore has collapsed as the low cost producers like Vale and Rio Tinto, glutted the  global market with endless supply. Data from the largest economy of Asia; mainly China, showed that the rise in the number of bank loans as well as the price of new homes, has declined subsequently. The former head of Rio Tinto, Tom Albanese stated that, the price of iron ore will remain to be low for a constant period of time, as the Chinese economy is nowhere near to regaining its strength and the supply is highly exceeding the global demand for iron ore.

 

The Fund Manager at Jainfeng Asset Management Co, a Shanghai based company, Liang Ruian stated that, the  worst is yet to come, not only that the supply from Brazil as well as Australia, will increase, but the demand from the steel makers will decline to larger extend which will affect the price more and more.