Analysts expect Billiton, Rio Tinto will follow suit

SHANGHAI - Iron ore producer Vale SA has decided to lower the price of fourth-quarter iron ore orders from Chinese steel mills due to the falling spot price, according to an insider close to the iron ore industry on Monday. Analysts said such a decision could press the other two iron ore producers to follow suit.

The iron ore spot price slipped to $166 a ton on Monday, while the order price has remained at $175 for the fourth quarter. The price gap pushed domestic steelmakers to require a correction on the order, and some of them put off purchasing iron ore.