Iron ore prices fell to a low of nearly five and a half years

Spot iron ore prices fell to nearly five and a half years low, the blame on China's abundant supply and weak demand for steel, as well as the second largest economy in the world economy in 2015 will likely remain confined.
On Thursday (1.22), before purchasing a stimulus plan details released at the European central bank bonds, China's iron ore futures prices briefly fell more than 2%, fall along with crude oil and copper and other commodity prices.
China is the world's largest crude steel market, the consumption of crude steel last year reduced by 3.4% to 7.383 tonnes, because China's economic growth is creating the slowest rate in 24 years.
Prime Minister Li Keqiang said on Wednesday that a slowdown in China's economic growth reflects a broader global situation, promised that he would continue to push for major reforms to improve growth prospects.
Wednesday (1.21), British Steel Index (The Steel Index) according to data compiled by the Chinese, Tianjin Port (600717, shares) port for prompt delivery of iron ore prices fell 1.3% to US $66.50 / ton.
In December 23, 2014, the steel material price is $65.6 / ton, the lowest level in 2009 since June. The above price and the price difference of less than $1. Last Thursday, in the global iron ore trading platform, 100000 tons of Australia's Pilbara iron ore (grade 62%) sale price of US $66.8 / ton, lower than the same grade of iron ore last week sale price of $68.9 / ton.
In China, the steel market weakness has prompted producers to reduce iron ore inventory. On Thursday, at the Shanghai futures exchange, the most actively traded steel futures contract fell as much as 2460 yuan ($396), not much higher than the November hit a historic low of 2417 yuan. Some local traders in Singapore said: "miserable steel profits will lead to China's small steel mills hit, especially in view of the current credit crunch situation, they have almost no much money can be used to deal with the losses." Traders said that because the supply is high, China's large private Steel Corp Shagang Group will in January the last 10 days of the rebar futures prices by 120 yuan. In Dalian Commodity Exchange, the May delivery of iron ore prices fell 1.8%, reported 487 yuan / ton; previously, iron ore prices hit an intraday low of 484 yuan / ton. Because of the global economic slowdown, the standard & Poor's rating agency last Wednesday cut its forecast for 2015 and 2016 iron ore prices from 85 U. S. dollars / ton down to 65 dollars / ton.