Influencing all of the price projection is the outlook for the Chinese economy and its steel industry which has all but stopped expanding.

FORBES: Connect

And Chinese stocks all through the steel industry, from iron ore to finished goods, which were built up in the expectation of a bigger stimulus package than has yet materialised, are now being run down, amplifying the downward price swing.

ECONOMIST: Iron ore

Although the precise accusations are unclear it seems that the Chinese suspect Rio's people of spying on its steel industry to obtain information about China's negotiating position.

ECONOMIST: Behind China��s accusations of spying against Rio Tinto

The huge size of the Chinese industry now makes it a dominant force in both the global steel market and the market for production inputs such as iron ore and metallurgical coal.

FORBES: Intelligence Community Fears U.S. Manufacturing Decline