The problem both Lion and Benjamins have is you are comparing...

The problem both Lion and Benjamins have is you are comparing Magnetite & Hematite costs in a landscape where both are being purchased. China cannot process Hematite like it once did. It is either process the more expensive Magnetite or shut down. Below is another take from the press.

"China's top steelmaking city has ordered many of its industrial factories to curb production or even close for as long as four months through to March in a bid to clear the skies of smog.
Tangshan, a city in northern Hebei province, will seek to reduce steel production by requiring producers to cut emissions by as much as 50 precent from Nov. 15 to Dec. 31, according to a document published in the official Tangshan government newspaper late on Monday."

Keep making the same points over and over again regarding the cost of production making it unviable when both ores and being purchased. China has changed. It wants to clean up and its starting with steel mills. Stop making the same argument about historical Magnetite mining. It is no longer relevant.