Is looking for a double-dip recession sign investors may wish to look at iron ore price . As Chinese steel makers cut production , iron ore prices have fallen more than one-third in three months .

　　

After the crash in May , other commodity prices is already stabilized , but as the market worried about the slump increased reproduction , iron ore prices continue to fall . Raw materials as steel , iron ore, essential for the global economy .

　　

For example, oil and copper prices rebounded from recent lows , but the stock benchmark iron ore ( iron ore content of 62% ) prices down in the past three weeks, 18% in April from a high point down 36% .

　　

At the same time , reflecting the cost of shipping the Baltic Dry Index (Baltic Dry Index) in less than two months fell 60%. The index has plunged in 2008 , was seen by some as a barometer of the global economy .

　　

Iron ore price fall is mainly due to this year 's output of steel manufacturers in China hit a record in the supply flooding the market . Meanwhile, the Chinese government tried to curb inflation , the Chinese economy is cooling .

　　

"The world steel flooding , " Credit Suisse (Credit Suisse) commodities analyst梅林达摩尔(Melinda Moore) said .

　　

This pushed down the steel prices and squeezed profit margins of steel makers . Many manufacturers now pay the contract price of iron ore , much higher than the spot price .

　　

Rio Tinto (Rio Tinto) , CEO of Aibo years (Tom Albanese) Wednesday to recognize the " popular weakened " due to a certain extent, " China's growth rate slowed down slightly . "

　　

Steel Market Intelligence market research firm , said China's steel industry "is very dangerous to speed production of high-cost iron and steel " , to their own trouble .

　　

"Chinese steelmakers continue to be high cost of gold into straw , their lack of financial discretion , we are shocked, " the company said.

　　

Seasonal factors, such as China, the traditional rainy season in summer slowdown in manufacturing activity , the effect of increasing the supply over .

　　

The Government aims to cool economic growth initiatives and the elimination of export tax rebate practices against the iron and steel production .

　　

Steel Business Briefing a recent survey , steel mills surveyed , half is expected to cut production this quarter , but less than 5% .

　　

"All you have talked with a certain amount of steel , are definitely the kind of started thinking , " Macquarie Bank (Macquarie Bank) , said an analyst . He pointed out that steel prices were flat last year , while iron ore prices this time last year, twice the steel plant does not continue to produce motivation.

　　

Data released yesterday showed that average daily basis, China in June crude steel output in May compared with a decrease of 1%.

　　

But analysts and industry executives said that despite difficult circumstances , still no indication of a steelworks in the iron ore deliveries to breach of contract . In 2008, when commodity prices fall due to global recession and , many Chinese steel makers accused of intentional breach of contract, to take advantage of lower spot prices .

　　

Some analysts said that in the traditionally less active after the summer , demand is bound to rebound , because the slowdown would be temporary.

　　

Analysts noted that although the end-user industries - such as automotive and white goods - 6 months to achieve double-digit growth, but the surface of the steel consumption over the same period next year of negative growth.

　　

" End users will run out of stock , making the case that some distortions , "Steel Business Briefing in Shanghai analyst拉斐尔哈尔level (Rafael Halpin) said . "In such a large-scale move to the stock after the automotive and white goods on the needs of even a slight rebound later this quarter may also be a substantial boost steel demand. "

　　

In fact, the iron ore spot prices have stabilized in recent days , the current price of about 118 U.S. dollars per ton , close to the production costs of some miners , and traders said the market volume has been enlarged .

　　

As the number of new production capacity , prices may be under pressure this year , but analysts think that if Chinese demand continues to grow , for many years the market will remain tight supply situation .

　　

Moore said that she values most of the world's leading indicator of industrial production - Turkish scrap prices - since June has been rising since mid .