There's more iron ore carnage to come

A declining iron ore price, combined with weakening Chinese demand, is already wreaking havoc on the mining industry, with the broader economy likely to be hit hard in the near term.

By the end of the year, the iron ore price will likely sit in the low-to-mid $US70s. And by the end of the shakeout, it looks like only BHP Billiton, Rio Tinto and possibly Fortescue (and maybe a couple of minor producers) will be able to operate in Australia.

The carnage across markets yesterday may have been eye-opening for some people, but it was an inevitable result when Chinese consolidation met unwise and excessive investment.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles