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.


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