As iron ore freight dives on the international market, China's import price of iron ore has slumped by a large margin, information of Guangzhou South China Metal Materials Trading Center shows.

    CVRD of Brazil announced to raise agreed price for iron ore shipped to Asia starting from September 1, a request that was refused by Chinese steel plants. Thus, CVRC stopped supplying, leading to a new round of big freight drop for iron ore. Since September this year,iron ore freight from Brazil to China has dropped by 22.422 US dollars/ton or 32.6 percent; while the freight from West Australia to China has lost 11.41 dollars/ton or 43 percent.

    Due to brisk market demand, iron ore price on the international market has kept rising for six years running. It grew 71.5 percent in 2005, and 65-96.5 percent in 2008. Price of iron ore produced in Australia has risen 410 percent at present as compared with six years ago; and that produced in Brazil has risen 370 percent. As a result, the three iron ore giants have done all they can to expand production.

    Then, the trend of oversupply occurred in 2008.