SMH reported that China's steel industry is close to peak production and will not reach the highs predicted by big miners such as Rio Tinto and BHP Billiton.

Mr Li Xinchuang deputy secretary general of China Iron and Steel Association said that steel production had gone above 800 million tonnes this year, but the growth rates were slowing significantly.

Mr Li said that “The big miners have long predicted that China's steel industry will peak at around 1 billion tonnes per year but it was more likely to peak around 870 million tonnes.”

He said that "Over the next 10 years, according to our studies, China's steel production can be over 800 million tonnes for a long time but it cannot go over 900 million tonnes.

Mr Li said that “While steel production and iron ore demand was still growing in China, it was now doing so at much slower rates. The China market not as good as before."

Mr Li said that “There would be no stimulus for the Chinese steel industry in the near future and there was little prospect of iron ore prices returning above USD 100 per tonne. It will be roughly around USD 80 per tonne for a long time because the volumes of iron ore imports increase very fast."

He said that “China imported just over 800 million tonnes of iron ore last year and was on track to import closer to 900 million tonnes this year. Despite lower iron ore prices, that was still a reasonable market for Australian producers to be selling into.”