The cost iron-ore producers are "hanging on by their fingernails", Rio Tinto CEO Sam Walsh said on Tuesday, as miners fight for survival in the face of falling metal prices amid a glut and weak demand.
Over the past five years, small producers have added 400-million tonnes of capacity, Walsh said in an interview with Bloomberg Television.
"Most of that tonnage falls into the high-cost category. So at the moment, those people are hanging on by their fingernails," he added. "But sooner or later the adjustment will take place." The spot iron-ore price fell to its lowest since at least 2008 at $37/t last week amid shrinking demand for the steel-making ingredient in major consumer China.
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