As China implements measures to cool off its economy, iron ore producers like BHP Billiton (NYSE:BHP), Rio Tinto (NYSE:RTP) and Vale (NYSE:VALE) are starting to get concerned on how it will impact the demand for iron ore from them.
Many raw materials companies have the same concerns, as many have been counting on increasing demand from China to help them through these slow economic times.
Just last month iron ore prices stood at two-year highs of $184.80 a ton, and now has dropped to $169.5 a ton in that short time.
The major element going forward is whether or not decreasing supply from India because of the monsoon season will offset the lower demand in the market.
Consequently, depending on which you believe to be the case, iron ore prices have been projected to drop as low as $150 a ton or rise to over $200 a ton by the summer.
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