Reuters reported that Shandong Iron & Steel Group and other big Chinese steel mills are no longer interested in buying a Chilean iron ore miner they have held talks with, as a slumping economy has left ore supplies ample.

As per report, Chilean iron ore firm Sociedad Contractual Minera Hierro Paposo had approached potential Chinese buyers, including Wuhan Iron & Steel, eyeing a deal worth hundreds of millions of dollars.

A Shandong Steel source said that "We are no longer interested in the offer. The market is not very good now and ore prices have been falling. The tide has turned now. It's a buyers' market."

Wuhan Steel has more attractive options for access to resources in Australia and Canada, where weaker local currencies offer lower purchase costs, and is unlikely to put money into the Chilean project.
Shandong Steel is the parent of Jinan Iron & Steel and Laiwu Steel Group.