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.
Source: Reuters
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