Benchmark 62% iron powder imported into northern China changed hands at $92.98 per tonne on September 20, down 8.7% from Friday's close, according to Fastmarkets MB.
Mining stocks also fell, with BHP Billiton Group down more than 11% from last week, down 10%, down 16%.
Iron ore prices have tumbled about 60 per cent since setting a record in May, falling below triple digits for the first time in more than a year.
Steel mills in Jiangsu have been ordered to cut production as part of broader curbs on industrial activity aimed at reducing electricity consumption, MySteel said, citing its survey of operators. The reduction will focus on construction steel between now and Oct. 15.
Producers in Zhejiang province have also been asked to limit operations until September 30.
"Recent strict production controls have driven down iron ore prices in the market, intensifying the pessimistic outlook for demand," analysts at SinoSteel Futures wrote in a report.
UBS Group AG said the decline was' faster than expected. ' Ubs expects iron ore prices to average $89 a tonne next year, down 12 per cent from its previous forecast.
Iron ore prices have also been hit by the downturn in the property sector. Real estate giant China Evergrande this week began using real estate to repay investors in its wealth management business as it struggles to service debt. The company's deepening debt problems have raised concerns about the impact its potential collapse could have on the housing market.
According to the latest report of Sputnik news agency of Russia on September 20, local time on September 20, a large number of Australian ships loaded with iron ore tried to unload in China's major port cities, but all were refused entry. The reason given by China is that in accordance with the relevant provisions of China's environmental protection, China has already started a large-scale energy conservation and emission reduction policy, and clearly stated that it will significantly reduce the import scale of Iron ore from Australia. Although these Australian ships loaded with iron ore set sail before China issued relevant regulations, but the loss should be the Australian side, rather than Our country.
Iron ore accounted for more than 40 per cent of Australia's export earnings between January and July, and a $10 drop in iron ore prices is expected to cost the country a $3bn to A $3.5bn in revenue. A 60% drop in prices would mean a loss of over $100 billion for Australia!
