Reuters quoted ArcelorMittal told investors said recently that underlying Chinese demand for iron ore is still strong despite evidence of more cautious behavior from some buyers, adding it expects buying activity to restart in the fourth quarter.

Mr Simon Wandke chief commercial officer of ArcelorMittal mining operations said "There has certainly been a longer period of stockholding in China at the mills this summer than the last couple of summers. What we are seeing is people taking a wait and see approach in China, but the underlying demand is still very strong."

In answer to a question, he said rumors of cancelled shipments to China related to small mills.

He added that "People are taking a wait and see approach for a month or two and then you will see some buying activity coming back again."

(Sourced from Reuters)