Posted on 31 Oct 2011
The recent slump in global iron ore price signals the market may be reaching a turning point, China's top listed steel mill Baoshan Iron & Steel Co Ltd (Baosteel) , said on Monday, adding that the price correction will allow a healthy expansion for steel producers and miners.
Baosteel, which reported a 51-percent slump in third-quarter net profit on Friday, also said it was in negotiations with top iron ore producer Vale SA to review prices for fourth-quarter supplies.
"I expect the current tightness in iron ore supplies to ease by around end-2012 or 2013. The market may even reverse to be oversupplied after a flurry of mine investments," Baosteel General manager Ma Guoqiang said during an online results briefing.
Ma's comments echo those by the country's steel association, which said on Monday that global iron prices could continue to fall even after the record slump this month.
