OREANDA-NEWS. November 28, 2011. Iron ore prices had been rising for much of the year, forcing the steel sector to constantly pass on the burden to their downstream customers. The iron ore market has experienced a slump in the recent weeks, mainly driven by excess supplies, weakening demand and a collapse in steel prices.

The recent price reductions not only undermined the monopoly by the three international mining giants, but strengthened the viewpoint that there will be equilibrium in the iron ore market in the next three to five years.

China has accelerated the pace to expand of household iron ore output in recent years. Total output is expected to exceed 1.3 billion tons in the years ahead.