Iron ore, which is a key ingredient for Steel production, continued its slump as demand for China is expected to slow down fast its steel consumption.

Analysts point out, with demand for steel on the drop, iron ore has little buying interest. Chinese mills are cutting production of steel, but that is just not enough for prices as demand drops faster. This year alone, China will export close to 100 million tons of steel, almost equivalent to Europe's total production.

Be it slowdown in China or structural reform, analysts point out steel market recovery may not occur until a decade. Even if Chinese economy doesn't slow down, structural reforms and a move from investment and export oriented economy to consumption oriented is enough to push prices lower.

According to Steel index data, iron ore prices for delivery in China dropped to $43.5/ton, lowest price on record, since data collection began back in 2008.