Decline in iron ore prices intimidates high cost iron ore miners

Author: Paul Ploumis
29 Sep 2014 Last updated at 04:34:13 GMT
CANBERRA (Scrap Monster): The Chief Executive officer of Vedanta resources based in London stated that, as the price of iron ore declined to 80 dollars per metric tonne, the high cost producers are under great pain. He also added that, even though the decline in the price would not affect the low cost producers much, there will be continuous closure of high cost producing mines.

Iron ore loss up to 42 percent this year, as the iron ore giants such as, Rio Tinto and BHP Billiton are continuing to expand their production and supplies in the market and the demand from China goes on to decline. The price forecast by Australia, cut down the price of iron ore for this year as well as the next year 2015, along with that also predicted the halt of much higher cost producers. According to Credit Suisse Group AG, the expansions by low cost miners might lead to pitiless pricing.

Albanese also stated that, as  the supply is exceeding, there will not be much increase in the price of iron ore, but will decline further.