It’s reported that iron ore producer Vale announced to lower their Q4 iron ore prices by US$10/ton for Chinese steel mills in a verbal agreement due to the current weak market situation.

The other two iron ore producers, including BHP Billiton and Rio Tinto are expected to follow the lead.

It’s known that the spot iron ore prices have fallen consistently since last month and the currently unstable iron ore price has also made many steel mills to put off purchasing.

Furthermore, many Chinese steel mills have run into operating difficulties due to the high prices of iron ore and the complicated situation of domestic and international economic environment.