Chinese steel plants tend to reduce steel production in Q3
Extreme weather and loss suffered by steel mills seemed to be the two main factors that caused Chinese mills to reduce their steel production in the third quarter. Hence, in the third quarter, the iron ore price may also fall due to limited demand since local mills won't be glad to increase steel output before assuring a healthy profit level.
However, hope still exists in such a pessimistic panorama as the Chinese government makes its move to stimulate and support the local housing market which currently faces difficulties. Hopefully, with these efforts and the government's interference, the iron ore price could avoid plunging to the bottom.
