Iron Ore Prices Dropping Fast:
The price of iron ore has dropped dramatically since its peak in February of 2011. Imports to China’s Tianjin Port have seen a price decline of 66.5%.
Producers Facing Loss:
According to ANZ Research, many iron ore producers are facing losses if they continue production. ANZ states, “BHP and Rio are the lowest-cost producers and are the only ones making decent profits at the current price. Brazil’s Vale is marginal and analysts say Fortescue is now losing money (which Fortescue disputes).”
Mining in the Pilbara: