THE WAR CONTINUES
The iron ore price war to the bottom continues with t he BHP Billiton* production update. The company’s iron ore production was up 16% and its costs are below $20 (R243) a ton. This makes it one of the world’s cheapest producers and gives the company a lot of space as prices continue to fall. With the Chinese government prepared to support its small producers, a low production cost is absolutely critical as iron ore prices are likely to continue falling with talk now of about $30 (R365) a ton.