Recent slump in freight rates, largely due to a collapse in bunker fuel prices, is saving the small iron ore miner as much as USD 16 per tonne, almost a quarter of the current iron price. This, coupled with the benefits of lower diesel prices at the mines and falls in emerging currencies against the dollar, is helping them resist at least a little longer.

Mr Colin Hamilton, Macquarie head of global commodities research, said that "This is certainly helping the small producers. They are not feeling as much of the impact of the fall in iron ore prices as you may have thought. The price of iron ore has to work harder to get rid of these suppliers."

Mr Hamilton said that "The challenge is that the market still doesn't need this extra supply so the smaller miners will be under pressure again."