Tokyo-based Mitsui OSK Lines (MOL) has ceased ordering new ships as the demand for steel has fallen.

Senior Executive Officer Masafumi Yasuoka said that MOL would scrap seven iron ore carriers and that there was a chance that the company would not renew long-term charter plans.

MOL had originally planned to increase its iron ore fleet by 28 percent to 160 vessels.

MOL said that its business year, which ends in April, would see a profit decline for the first time in seven years.