Iron ore capacity cuts driven by slumping prices have yet to swing the global market to a deficit as the world's biggest producers keep on adding supply, says Morgan Stanley, which projects a glut will endure to at least 2020.

An estimated 91 million metric tonnes of high-cost capacity has been cut last year and so far in 2016, the bank said in a report. When combined with reductions not spurred by low-prices – such as the suspension of Samarco Mineracao SA's operations in Brazil after a dam burst – tonnage removed climbs to 141 million tonnes, or 10 per cent of seaborne supply, the bank said.

Bloomberg