May 16, iron and steel enterprises has taken back the iron ore shipment to the market, aiming to shrink the inventory and lower the cost.

In the last two weeks, the traders said that the iron ore purchased by Chinese steel players under long-term contract dumped into the spot market, reaching 2-3 million tons.

This dumping caused the increasing supply from spot market, generating price declines to the lowest level this year. It also implies that the Chinese steel companies will reduce the production later as the slower economic recovery restricts the demand.