Nov. 3 (Bloomberg) -- Cia. Vale do Rio Doce withdrew demands for price increases from Chinese steelmakers as economic growth slows. A record plunge in commodities may signal the U.S. is headed for the longest recession since 1981. Rio Tinto Group said the economic slowdown in China is quickening and demand won't rebound until 2009. INDUSTRIAL METALS, MINING National Aluminium Seeks Bids for 240,000 Tons of Alumina National Aluminium Co., India's biggest alumina producer, is seeking bids on 240,000 metric tons of the raw material used to make aluminum. Posco Completes SMSP Nickel Smelting Plant in South Korea Posco, Asia's third-biggest steelmaker, has completed a nickel smelting plant in South Korea, increasing its self- sufficiency in the supply of the metal. Shanghai Copper Advances After Domestic Inventories Decline Shanghai copper futures rose after domestic stockpiles fell for a second week and as spot prices of the metal became more expensive than futures prices, a sign supply may be tightening. PRECIOUS METALS India's Gold Imports Decline 30% as Rupee's Drop Lowers Demand Gold imports by India, the world's biggest buyer, had their first monthly drop in three after a weakening Indian rupee increased import costs. Gold Rises First Day in Three After Dollar Falls Versus Euro Gold rose for the first time in three days after the dollar weakened against the euro, boosting the appeal of the precious metal as an alternative asset. Gold Heads for Two-Year Low as Deflation Risks Trump Inflation Gold, the metal that rallied during every U.S. recession in the past three decades, may drop to a two-year low as the threat of deflation curbs bullion's appeal. STEEL, COAL, URANIUM AND IRON ORE Mt. Gibson to Discount Iron Ore, Sell Stake to Shougang Concord Mt. Gibson Iron Ltd., an Australian iron ore producer, will discount prices and sell a stake to a Chinese steel company after three customers defaulted on sales contracts, crimping cash flow and threatening expansions. Vale Withdraws Demand for Iron Ore Price Increase Cia. Vale do Rio Doce, the world's largest iron ore supplier, withdrew demands for price increases from Chinese steelmakers as economic growth slows, customer Baosteel Group Corp. said. China Should Remove 17% Tax on Scrap Steel Imports, Group Says China, the world's largest steel producer, should remove a 17 percent value-added tax on scrap steel imports to bolster domestic supplies, an industry group said. China's Spot Iron Ore Prices Fall 16% Last Week on Weak Demand Cash prices of iron ore imported by China, the world's biggest buyer, tumbled 16 percent, the 11th straight weekly drop, because of weaker demand from steelmakers. BHP Says Will Maintain Iron Ore Output as Rival Vale Makes Cuts BHP Billiton Ltd., the world's largest mining company, will maintain its iron ore production and investment program as rival Cia. Vale do Rio Doce said it will lower output because the global credit crisis has curbed demand. China's Steel Product Production to Fall 20% in Fourth Quarter China, the world's largest steelmaker, will probably post a 20 percent decline in output in the fourth quarter from a year ago as demand slows. AGRICULTURAL COMMODITIES Palm Oil Rises on Demand After Biggest Monthly Drop in 13 Years Palm oil futures in Malaysia rose after posting their worst monthly fall since at least 1995 on expectation that low prices and easing economic conditions may revive demand for the tropical oil. Corn, Soybeans Advance as Dollar, Stocks Boost Demand Outlook Corn and soybeans climbed for the first day in three on speculation a weakening dollar would boost demand for food, feed and fuel and stock market gains would revive investment in commodities. Japan Seeks to Buy 51,000 Tons of Foreign Rice at Nov. 7 Tender Japan, the world's largest grain importer, is seeking to buy 51,000 metric tons of foreign rice at a tender on Nov. 7, according to the Ministry of Agriculture, Forestry and Fisheries. India's January-October Coffee Exports Increase 3%, Board Says India's coffee exports, about 80 percent of the nation's production, rose 3 percent in the first 10 months of this year, the state-run Coffee Board said. COMMODITY COMPANIES IOI Leads Malaysian Palm Oil Growers Higher as Prices Rebound IOI Corp., Malaysia's second-largest palm oil producer, led gains in plantation stocks after palm oil futures rebounded and ECM Libra Capital Sdn. said the shares became ``bargains'' after a sell-off over the past month. Australian Mining Stocks May Fall Further on China Contraction Australian mining company shares may have further to decline because growth in China, the world's biggest buyer of metals, may contract further next year, JPMorgan Chase & Co. said in a report. OTHER COMMODITIES Commodities Send Sell Signal Before Worst Recession Since 1981 A record plunge in commodities may signal the U.S. is headed for the longest recession since 1981, just after Ronald Reagan became president and the economy began a 16-month slump. Rio Chief Says Slowdown in China Is Gathering Pace Rio Tinto Group Chief Executive Officer Tom Albanese said the economic slowdown in China, the nation that buys 17 percent of the company's production, is quickening and demand won't rebound until 2009. For Related News: Top commodity stories: CTOP Top oil stories: OTOP Top metals stories: METT

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