01 January 2009

China squeezing iron ore prices

China is starting out the New Year by limiting imports of iron ore.  That is likely to further depress ore prices or ensure they stay low.

That isn’t good news for Labrador west, where one of its two mines has laid off half the workforce and the other postponed a major expansion indefinitely.

Meanwhile, if Rio Tinto competitor Billiton keeps pushing out ore and making a profit at the same time, Rio Tinto might find itself squeezed even harder if the Chinese start restricting market access.