Hammered ore prices threaten Chinese iron miners (5)

As steel demand is likely to gain traction, the halted production capacity is expected to be restored.

The thawing manufacturing sector has helped put a dent in iron ore stockpiles, and ore stockpiles at ports have decreased by nearly 9 million tonnes since August.

But experts have warned that if steel demand in the future can not keep pace with the potential boom in output, the price of steel, as well as steelmakers' profit margins, will fall again.

At that time, Chinese iron ore miners who can not withstand heavy price drops will be vulnerable to a "gain-then-lose" cycle.

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