Summary: Iron ore miners are cutting costs faster than the iron ore price is falling and large industry players are not slowing production. The tricky question is whether Australia’s low cost mines are forcing out high cost material from other countries. Investment banks are equally split in their views on Fortescue’s future, meaning one of the banks will be proved wrong.
Key take-out: BHP Billiton and Rio Tinto will survive another fall in the iron ore price, although the smallest miners might struggle.
Key beneficiaries: General investors. Category: Mining stocks.