Iron ore mine closures: domestic price premium puts less Chinese supply at risk
Our revised view of Chinese capacity at risk of closure is 33 million tonnes lower than previous estimate, reflecting an unanticipated price premium for local ore suppliers. With 33 million tonnes of Chinese production 'back in cash', some imported iron ore has to be displaced instead. Looking at the margin curve of all supplies to China shows Australian juniors and Iranian supplies are at most risk of closure.
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China domestic prices are attracting a premium over seaborne prices
Less Chinese production losing money than previously thought