Reuters reported that iron ore prices are in free fall as the domestic steel prices in China continue to crash

Benchmark 62 percent grade iron ore .IO62-CNI=SI was at USD 123.20 a tonne on Thursday, just off the 2013 low of USD 123 reached earlier last week.

A Shanghai trader said “In the past weeks, people were looking at USD 120 as the bottom price. But now it seems that a lot of people are looking at USD 110 to USD 115. The sentiment is bearish. We have almost cleared all our stocks and we're not buying any cargo. We are quite pessimistic; we think the market will fall further.” The price hit a peak of USD 158.90 in February, a 16 month high.