The iron ore industry is worried about a further collapse in prices as the Chinese government has signaled it is abandoning its aggressive policy stimulus to boost economic growth, according to media reports.

China's Finance Minister Lou Jiwei said that the government would not change its economic policies due to weakness in one particular economic indicator. China's industrial output growth has slowed to its lowest level since the 2008 economic crisis. It has been expected that the country's central bank would inject RMB 100 billion ($16.2 billion) into each of top five state-controlled banks to prevent further economic weakness.

As of Monday, September 22, global iron ore prices declined to $80/mt CFR. The slump in iron ore prices comes as a warning for iron ore producers that the long-awaited upward movement to higher prices may not take place.