Iron ore surplus seen shuttering China mines

New, cheap supplies from Australia, Brazil pushing global prices down

Surging global supplies of seaborne iron ore will challenge Chinese producers of the raw material for steel, probably forcing some higher-cost capacity in the country to close, according to BHP Billiton Ltd.

The gain in global production is being led by Australia and Brazil and their new, low-cost output will displace marginal suppliers in China, Michiel Hovers, vice-president of iron ore marketing at BHP, told an industry conference on Wednesday.