Reuters reported that iron ore price offers were steady recently with thinner Chinese buying interest as production cuts continued in China while tighter high grade supplies of the raw material kept prices from slipping sharply.
China crude steel production had dropped since September as the country tries to meet year end energy efficiency targets by limiting electricity supply to power intensive steel mills.
The China Iron & Steel Association said "China's crude steel demand will remain low, with even negative growth for the fourth quarter, and steel production will also see low growth for the same period."
Mr Luo Bingsheng CISA deputy chairman also said Chinese mills have begun iron ore pricing talks for 2011.
An iron ore trader in Shandong province said some steel mills in Tangshan, the capital city of Hebei province, China steel production center have been ordered to cut production again so imported iron ore prices have softened a bit amid a lull in transactions.
Analysts and traders say the ongoing cuts have had little impact on the outlook for iron ore demand due to expectations other steel mills may be building stocks ahead of winter, suggesting ore prices may still recover.
Chinese consultancy Mysteel said offers for Indian ore with 63% to 63.5% iron content were steady at USD 156 per tonne to USD 158 a tonne recently, cost and freight delivered to China.
The Steel Index 62% iron ore benchmark .IO62-CNI=SI dropped 20 cents to USD 149.60 a ton, cost and freight delivered to China at the close of trade recently. The index, based on spot prices in China has fallen just 2% over the past two weeks after touching near five month highs in early October. It is up 6 percent for the month.