Big 3 Iron Miners Keeping Up Volume, Price Balancing Act

Reuters columnist Clyde Russell wrote today that iron ore miners BHP Billiton (NYSE:BHP) Rio Tinto (NYSE:RIO) and Vale (NYSE:VALE) are bent on keeping their dominant position in the market by increasing low cost production. The strategy will depend on whether demand from China will continue to support prices, according to the author.

As quoted in the publication:

The three global iron ore giants have effectively gambled that they can continue to boost production and grab bigger slices of global demand, given that they can withstand lower prices due to their low-cost mines and economies of scale. So far it seems to be a winning strategy as they don’t appear to be battling to sell their output, and they are still likely to report strong profit growth as they reap the benefit of massive cost-cutting programmes over the previous two years.

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