Iron Ore Slump to have an Impact on China’s Mining Capacity

Reuters reported that a downward trend in iron ore prices is having an adverse impact on China’s mining sector, with three-quarters of the country’s mining capacity operating at a loss.

As quoted in the market news,

Three-quarters of China’s domestic iron ore capacity is incurring losses and capacity utilisation rates at small iron ore mines dropped to as low as 20 percent at the end of last year, said Yang Jiasheng, chairman of the Metallurgical Mines Association of China (MMAC).

Rio Tinto expects some 85 million tonnes of iron ore capacity to exit the global market in 2015 on top of an estimated 125 million tonnes last year due to tumbling prices, with Chinese mines absorbing most of the losses.

Click here for the full Reuters report