PCI quarterly prices have taken a battering, falling to US$73/t in Q3, not seen since the US$68/t annual contract price of 2007. Spot prices are lying closer to 2004 levels at around US$63/t. PCI producer margins are wafer thin. At US$73/t over 30% of the trade is making a cash loss and at current spot prices that figure rises to almost 80%. Chinese steel demand, unforgiving trade policies and, importantly, greater supply from China and Russia are to blame.