Iron ore demand may drop next year

China’s steel industry expects a surplus of iron ore and falling prices in the global market next year, as the global economic crisis slows economic growth and orders from steel makers, Bloomberg reported. "It’s clear where iron ore prices will be going," said Liang Shuhe, deputy director of foreign trade at the Ministry of Commerce, at a conference in Qingdao. "Iron ore demand may drop next year with falling demand for steel." Shan Shanghua, secretary general of the China Iron & Steel Association, speaking at the same conference, said all Chinese steel makers are unprofitable this month, and it may take two months to return to a profit. Shan added that 40% of steel makers around Tangshan, an industrial city in Hebei province, had closed.