Iron Ore Price, page-1571

Iron ore tax reduced.China spectator
China slashes local iron ore tax

• DOW JONES NEWSWIRES WITH A STAFF REPORTER
  
• 57 MIN AGO
  

China's State Council, or cabinet, has said the government will lower power prices and the resource tax on iron ore to reduce business costs and support the economy.

Coal-based on-grid power prices will be reduced by an average of about 0.02 yuan ($A0.004) a kilowatt hour, the cabinet said in a statement on the main government website.

China will also cut power prices for industrial and commercial users by an average of about 0.018 yuan a kilowatt hour, according to the cabinet.

Starting next month, the government will reduce the existing resource tax on iron ore by 40 per cent, it said, without giving further details.

The news comes as high-cost Chinese iron ore producers face a heavy strain from collapsing prices amid an oversupply. Chinese producers are seen unable to compete with the cost structures of sector heavyweights Vale, Rio Tinto and BHP Billiton.

Even after the tax cut comes into effect on May 1, Chinese miners are seen likely producing at a significant loss with the current spot price below $US50