Volatility continues in the world iron ore market, with futures slipping below $US80 for the December contract on the Singapore exchange.
Sport prices rose from $77.50 per tonne in September to $83.10 in mid-October, showing short-lived promise for investors.
Last week prices dropped to below $80 once again on the Chinese market, hitting $79.80 on Friday.
Glencore’s Ivan Glasenberg recently blamed the commodity glut on Rio Tinto and BHP, arguing their strategy is completely wrong.
Glasenberg said his two biggest competitors were fuelling a 25 per cent increase in output that was “killing the super cycle.”
Glencore has also been increasing iron ore production, with production 14 per cent higher than in 2012.
FMG boss Nev Power has also criticised the iron ore giants, saying that they will be “sadly disappointed” if their expansion plans are aimed at knocking out Australia’s third biggest producer.
Fortescue share prices have taken a beating over the last nine months, falling 45 per cent since February to $3.57, which has brought Andrew Forrest’s 33 per cent stake down by $2.6 billion.
SMH reported that Fortescue is having to offer discounts on iron ore sold to China as it is producing a lower grade than that available from Rio Tinto and BHP.