Author: Paul Ploumis17 Oct 2014 Last updated at 07:31:06 GMT
CANBERRA (Scrap Monster): According to the analyst at USB, Daniel Morgan, the big fishes are trying to oversupply the market that the price of iron ore can further decline down to as low as possible. And they have a tendency to fill up the market as soon as the supply a tiny bit, so as to preserve the present structure of the market.
Followed by all this decline in price and oversupply, the Premier of Western Australia, stated that, it is to be noted that the both companies, Rio Tinto as well as BHP Billiton are working together to decline the price of iron ore by glutting the market with over supply.
Other miners than the giant ones will at least need the price of iron ore to rise up to 90 dollars per tonne or 100 dollars per tonne. And in order to just break even these miners may only get up to a price, which is expected to be, nearly to 60 dollars per tonne or 70 dollars per tonne. The price of iron ore is too low for new projects to come by the way.