US producer Magnetation is latest casualty of iron slump

New York

A WORLDWIDE oversupply of iron ore triggered Magnetation LLC's bankruptcy filing, with the US producer saying it plans to carry out a debt-restructuring agreement with creditors.

Iron ore sank to a 10-year low at the start of April as economic growth in China, the biggest consumer, threatens to fall below 7 per cent for the first time in more than 20 years, while the biggest producers of the steelmaking raw material expand production.

Magnetation gambled by starting a major expansion of its operations, including a new pellet plant in Indiana, when the price of iron ore was at a peak. Between 2004 and 2010…