Every cloud has a silver lining and for iron ore heavyweights BHP and RIO, falling prices are driving Chinese competitors out of business

Every cloud has a silver lining and for iron ore heavyweights BHP and RIO, falling prices are driving Chinese competitors out of business. As the lowest-cost producers in the world, the 'big three' iron ore producers - Vale, RIO and BHP - are able to utilise recent price weakness to apply pressure to higher-cost producers and potentially increase their already dominant market share. The price of iron ore has fallen by 44% from its February 2013 peak on the back of record output, directly impacting mining companies in China where between 20% and 30% of mines have closed, according to the China Metallurgical Mining Enterprise Association. Vale, Rio and BHP already control around two-thirds of global seaborne supply and that share is set to increase. (VIEW LINK)