Bloomberg reported that cash prices of iron ore imported by China, the world's biggest buyer fell by 12% to a 19 month low because of weaker demand from steelmakers.

According to BAID, prices at Qingdao, China's biggest port handling the steelmaking ingredient tumbled CNY 100 to CNY 720 per tonne the lowest since the week of March 16th 2007.

According to the report, Chinese mills have cut production as the economic slowdown and a global credit crunch curbed demand from automakers and builders. Shougang Corp, Jiangsu Shagang Group Co and other Chinese steelmakers have said they are slowing orders because of high stockpiles and lower demand.

According to Antaike the Chinese price of hot-rolled coil, a benchmark steel product, kept falling in the past month dropping 39% to CNY 3,645 per tonne from a record CNY 5,957 on June 5th. It said that cash prices for iron ore arriving at Beilun port, where Baoshan Steel receives shipments dropped by 13% to CNY 700 per tonne this week.