This is kind of what I'm thinking as well. The deliberate...

This is kind of what I'm thinking as well. The deliberate attempt by the CCP to lower the iron ore price short term, will back fire in the long term. As all the high cost producers will be wiped out prematurely in the cycle thus reducing supply long term.

As an example you only have to look at GWR in Australia at these prices they aren't making any money. So there goes 1mtpa already.

Obviously the market for ore is cyclical high prices attract new investment and high margin producers which is followed by oversupply and lower prices for ore resulting in lower amounts in investment and high margin producers being mothballed.
Disrupting that cycle artificially, by reducing steel production while steel prices are increasing and inventories are falling is surely foolish.