Steelmakers in South East Asia are paying special attention to negotiations on yearly iron ore prices and expect that the basic price will be lowered by 44~45 percent to release cost pressure; this will result from the production cost for steel industries being reduced a lot.
According to information from Malaysia, the iron ore price will be down by 40~50 percent and PT Krakatau, the biggest steel producer in Indonesia, thinks that the pig iron price will be decreased by 40 percent and that the new price will be confirmed this week or next week. Source: Yieh.com