"although with prices below $120 a significant number of small and medium sized iron ore producers are likely to cut production. In 2012, when prices spiked down to a low of $86.70, it is estimated that a third of smaller producers stop production. - See more at: http://www.fastmarkets.com/base-metals/iron-o...dpuf"

and conclusion of article re domestic chinese iron ore still needed and such reportedly has a marginal cost of 120-180 so if prices remain low long enough many of those suppliers shut down or mothball etc as has happened w some silver and gold producers

in 2012 prices recovered to 140 at year end though changes in supply since would modify that to perhaps 120 now as the big producers -taking advantage of historically high prices -are shooting themselves in the foot long run in an insane mad dash to increase market share w unbelievable uncontrollable insane greed

the opposite of the game that monopolistic seller cartels like opec play

prices are still historically high -the reason for the rush to increase supply- was only 10-14 /ton til 2002