Who should take the responsibility of gold price plunge sharply

"Wall Street Journal" reported that, this year the international iron ore prices have fallen 41%, but the main reason is not China, but because of the surge in production by the Australian-led cause the entire industry into a serious excess supply, so that the huge volume in China the steel plant can not absorb such a large scale production.

James Sutton JP Morgan Wealth Management Natural Resources Fund portfolio manager said: iron ore demand remains strong, the problem is supply.

However, regardless of whether it is close to China's demand a high level of history, will determine iron ore prices are steady or fall further.

Since this year, including Rio Tinto iron ore supply, including international giants are amplified by a low-cost production, so this is excess supply further pressure. In the first half of this year, Australia's largest iron ore supplier Rio Tinto's shipments grew 20 percent, the highest in the company's historical record. Because of its huge expansion in the Australian outback several scale mines.

Credit Suisse today released research reported:

Excess supply. Iron ore is in a squeezed on a major mining companies to make the supply surge relentless expansion thus suppress the price of the road.

China's economic growth is slowing, demand growth can not keep up its growth in the international market supply. Chinese iron ore imports in August grew by 9%, slightly lower than the record levels earlier this year.

Another measure of China's heavy demand indicators released today: As the world's largest mining supply growth exceeds demand growth in China, the Australian government cut next year's iron ore price forecast, further bearish iron ore market prospects.

Henan Bailing devoted to provide large Iron ore benficiation turn-key project, like jaw crusher, ball mill, etc., looking forward to your consultation.