The world's largest iron ore miner CVRD has also joined the other Australian iron ore companies to cut price with significant increase in the global iron ore production and drop in China's iron ore demand. The world's third-largest mining company Rio Tinto, as well as Australia's third largest iron ore exporter Fusco have given more discount to Chinese importers on low-grade iron ores earlier these days. And the vale’s price cut down has further displayed that China has growing bargain power on iron ore price.

The market is rapidly transforming to a buyer's market, and competition between mining companies is becoming increasingly intense. Iron ore prices have fallen more than 30% this year. Many steel mills buyers have abandoned long-term contracts with mining companies because of low spot price. The increasing rate of iron ore production is higher than the past decade.