Market sources were not surprised by the announcement.

Only 18% of respondents expected their iron ore requirements to increase in Q4.

The plant can produce 300,000 mt/year of hot rolled coils and 160,000 mt/year of pickled and oiled coils.

This is because upward momentum in property and infrastructure, which account for over 55% of China's total steel consumption, has slowed.

Strong demand from the property sector was lending some support to long steel, aluminum and copper markets in September, market sources said.

The settlements for BF-grade pellet premiums are nearly flat with the previous quarter and lower by around $3/dmt for DR-grade pellets.

Japanese ferrous scrap exports rose by 28pc in June from May to 883,157t, boosted by increased price competitiveness against US exports in Asia.

[Ferro-Alloys.com] Australia's exports of goods to China fell by more than 26% in August, sparking fears of deteriorating relations between the two countries.