• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • NORTH AMERICA EDITION
      Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • NORTH AMERICA EDITION
      North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Base Metals Market
    Base Metals News
    Base Metals Stocks
    • Base Metals Market
    • Base Metals News
    • Base Metals Stocks
    iron investing

    Rio, BHP, Vale Could be “doing a China”

    Teresa Matich
    Dec. 05, 2014 10:46AM PST
    Base Metals Investing

    It’s no surprise that producers such as Rio Tinto (NYSE:RIO) BHP Billiton (NYSE:BHP) and Vale (NYSE:VALE) seem to be deliberately continuing to expand their iron production in order to push down prices and drive smaller companies out of the iron market. Lawrence Williams of Mineweb likened the strategy to moves made by China in recent years, which have allowed the country to dominate the production of certain metals and resources.

    It’s no surprise that producers such as Rio Tinto (NYSE:RIO) BHP Billiton (NYSE:BHP) and Vale (NYSE:VALE) seem to be deliberately continuing to expand their iron production in order to push down prices and drive smaller companies out of the iron market. Lawrence Williams of Mineweb likened the strategy to moves made by China in recent years, which have allowed the country to dominate the production of certain metals and resources.

    As quoted in the publication:

    It’s uncertain whether this was a concerted policy by the big iron ore miners to re-exert their dominance of the sector. They certainly wouldn’t admit it if there was, but the net result (perhaps unintended consequences, although in this case beneficial to the big producers) is likely to be that when the Chinese and Western steel sectors do recover, which they inevitably will, the iron ore markets will be even more dominated by the big three producers and a few other major miners. Meanwhile some of the potential would-be competitor miners – particularly those with massive potential infrastructure costs for transport of ore and/or lower ore tenors requiring additional upgrading to generate an acceptable product – will just not be able to survive the lower price environment. Operations will close, perhaps never to reopen; finance will be cut off as the bankers consider the risk too great; and new projects just won’t get built.

    Click here to read the full article.

    iron investingnyse:valechinanyse:bhpnyse:rioiron market
    The Conversation (0)

    Go Deeper

    AI Powered

    Rio Tinto

    iron ore mine

    Iron Ore in Australia

    Latest News

    Auking Completes A$5m Riverfort Facility

    Juggernaut Samples up to 256.60 g/t Or 8.25 oz/t Gold and Identifies 4 New Gold-Rich Zones that Remain Wide Open and are Drill Ready within the Highway of Gold Corridor on the Big One Property, Golden Triangle, B.C.

    Sun Summit Drills 78.0 Meters of 3.72 g/t Gold Including 19.1 Meters of 7.50 g/t Gold at the JD Project, Toodoggone District, B.C.

    Trading Halt

    Shallow High-Grade Gold Intercepts Confirm Growth Upside

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Base Metals Investing Stocks

    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×