The iron ore price is holding steady at $US41.50 a tonne, unchanged from its previous session.
Although the price has bounced off its recent lows below $US40 a tonne, it remains in an 18-month bear market, with little joy in sight for iron ore producers.
Major Brazilian miner Vale last week scrapped its dividend, revising its former policy of paying out 25 per cent of net profit.
The news will revive questions around dividend payouts for Australian majors BHP Billiton and Rio Tinto.
At BHP’s AGM last November, chairman Jac Nasser left open the possibility that the miner could back away from its progressive dividend policy, which would mean cutting its dividend for the first time since 1988.
The miner has previously committed to increasing or keeping steady its dividend each half-year, but with prices for its key commodities falling, some investors prefer the company not to borrow to pay its dividend.
Source: Business Spector