Iron ore prices drop to 3-year low

Imported iron ore prices are at their lowest level since late 2009 because of shrinking demand from steel mills, forcing many Chinese iron ore producers to cease production and causing huge stockpiles of ore across the country.

Prices have fallen to $100 a metric ton compared with last year's high of $190 a ton, said Xu Xiangchun, information director of industrial consultancy Mysteel.

Wang Guoqing, deputy director at the Lange Steel Information Research Center, said he is now predicting that imported iron ore prices will fall to $70 a ton next year, if steel demand continues to be weak.