$ 80 a ton of iron ore will lead to the disappearance of many miners - Rio Tinto

Iron ore is down more than 30 percent YTD on expectations of falling demand in the markets. At the same time, the decline in demand from China, which accounts for two-thirds of the 1.2 billion tonnes of maritime trade, has been negatively impacted. Now the reserves of imported iron ore in Chinese ports have reached a record level of over 110 million tons

Sam Walsh, CEO of Rio Tinto, said his company's new iron ore flow posed less of a threat to the miner's London headquarters than its competitors. Because Rio Tinto has the lowest cost price in the world at $ 20 per tonne compared to around $ 92 per tonne. Sam Walsh thinks the company will be fine as the price is unlikely to drop to $ 80.

Walsh said that “I think the price of $ 80 is too low, I suspect that the $ 100 level is more realistic. We are confident in our predictions and that our actions are justified. But if the price reaches $ 80 per ton, then many of our friendly competitors may simply disappear. "

Goldman Sachs recently predicted that global iron ore supplies will exceed demand by 175 million tonnes next year as top producers Vale, Rio Tinto and BHP Billiton continue to increase their production capacity. However, their production costs are different, so at high costs, the company can expect a collapse.