Bad year ahead for iron ore producers

The iron ore price negotiation for 2009 next month is likely to turn the tables against producers for the first time in several years because of fears of a US-led global recession.

Industry experts and analysts said yesterday that major consuming countries, including China, will have a bigger say in what is expected to be a buyers' market dominated by high inventories and falling demand.

"The persistent drop in prices of a variety of steel products has forced many domestic (Chinese) steel manufacturers to cut production to reduce losses," said Zhang Ping, senior steel industry specialist with Umetals, a leading metal consultancy firm.