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Iron Ore Mine Closures May Lead to $70 Floor Price, ANZ Says

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Iron ore mines in China will close down should prices drop toward $70 a metric ton, potentially creating a base for prices of the steel-making raw material, according to Australia & New Zealand Banking Group Ltd.

“Substantial domestic iron ore mine closures would occur between $70 to $75 a ton, creating a floor,” the bank said a report dated today, citing findings from a recent visit to the world’s largest steelmaker. “Opportunistic Chinese steel mill restocking is not occurring at low prices and highlights how difficult near-term steel conditions must be on the ground.”