The Chinese steel market is forecast to plummet this year and with it global iron ore demand, according to analysts; Platts China Steel Sentiment Index (CSSI) shows a 25.61% fall out 100% points last month, a 12.47 point drop from October’s 38.09%.

New export orders, which fell 38.33% from October’s 70.96 to 32.62 in November, were struck especially hard, despite record Chinese exports booked earlier in 2014; these offset weak domestic demand, said industry observers, while keeping domestic production relatively high.

Taxes on building materials, coupled with slagging domestic construction outputs, have had major impacts, reported analysts. Chinese crude steel production, however, will remain steady as prices are anticipated to witness modest increases, they added.