The iron-ore oligarchy of Vale, BHP Billiton and Rio Tinto have been boosting supply even as prices have been declining. You don't do that if you wish to sustain high prices. Rather they are attempting to drive high cost producers out of business in an effort to maintain market share and future pricing power. Iron ore prices dropped below $80 yesterday for the first time since 2009 and a break in this year's progression of lower rally highs will be required to signal a return to demand dominance beyond potential for some short term steadying.
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