May 17, 2020

Iron ore price boom in Australia

iron ore mining
iron ore export
Australian iron ore
Dale Benton
2 min
Iron ore price boom in Australia
Iron Ore hit close to $62 per ton, a three month high for the commodity, a report released by the Pilbara Ports Authority has revealed.

The report also...

Iron Ore hit close to $62 per ton, a three month high for the commodity, a report released by the Pilbara Ports Authority has revealed.

The report also showed an increase in the amount of shipments of the element through Port Hedland in July, the largest iron ore terminal in the world.

The import price for 62 percent iron content fines at the port of Qingdao added nearly a dollar to $61.56 a tonne, data from The Metal Bulletin Index has shown, taking its monthly average to $61.28.

Pilbara Ports Authority has delivered a total monthly throughput of 52.9 million tonnes (Mt) July, an increase of 2 percent from the same month last year.

The Port of Port Hedland achieved a monthly throughput of 39Mt, an impressive growth of 9 percent from the previous year.

Iron ore exports for the month totalled 38.7Mt an increase of 10 percent from the same month in 2015. Imports totalled 113,000 tonnes, a decrease of 44,000 tonnes or 28 percent from the previous year.

The Port of Dampier delivered a total monthly throughput of 13.8Mt, a decrease of 1.9Mt or 12 percent from the same month in 2015. Imports totalled 57,000 tonnes, a decrease of 19,000 tonnes or 25 percent from the previous year.

Figures gained from [Pilbara Ports

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May 6, 2021

Copper, iron ore surge as Chinese investors unleash demand

Iron ore
3 min
Iron ore broke $200 a tonne for the first time, while copper approached a record high as Chinese investors unleashed fresh demand following May holiday

The reopening of major industrial economies is sparking a surge across commodities markets from corn to lumber, with tin climbing above $30,000 a tonne for the first time since 2011 on Thursday.

In the wake of mounting evidence of inflation fuelled by higher raw materials prices, investors are also increasingly focused on when the U.S. Federal Reserve might start throttling back its emergency support.


Many banks say the rally has further to run, particularly for copper, which will benefit from rising investment in new energy sectors. Copper is at the highest in a decade, fueling bets it will rally further to take out the record set in February 2011. Steel demand is surging as economies chart a path back to growth just as the world’s biggest miners have been hampered by operational issues, tightening ore supply.

“The long-term prospects for metals prices are ‘too good’ and point to higher prices in the next few years,” said Commerzbank AG analyst Daniel Briesemann. “The decarbonization trends in many countries, which include switching to electric vehicles and expanding wind and solar power, are likely to generate additional demand for metals.”

Trading house Trafigura Group and several major Wall Street banks including Goldman Sachs Group Inc. and Bank of America Corp. expect copper to extend gains.

Copper rose as much as 1.6% to $10,108.50 a ton on the London Metal Exchange before trading at $10,080 as of 4:07 p.m. in London.


Iron Ore

Benchmark spot iron ore prices rose to a record, while futures in Singapore and China climbed.

The boom comes as China’s steelmakers keep output rates above 1 billion tons a year, despite a swath of production curbs aimed at reducing carbon emissions and reining in supply. Instead, those measures have boosted steel prices and profitability at mills, allowing them to better accommodate higher iron ore costs.

Spot iron ore with 62% content hit $201.15 a ton on Thursday, according to Mysteel. Futures in Singapore jumped as much as 5.1% to $196.40 a ton, the highest since contracts were launched in 2013. In Dalian, prices closed 8.8% higher.

Erik Hedborg, Principal Analyst, Steel at CRU Group commented: “Recent production cuts in Tangshan have boosted demand for higher-quality ore and prompted mills to build iron ore inventories as their margins are on the rise. Iron ore producers are enjoying exceptionally high margins as well, around two thirds of seaborne supply only require prices of $50 /dmt to break even.”


Still, some analysts including Commerzbank’s Briesemann expect a short-term correction as metals become detached from fundamentals. There’s also a risk that China could engage in policies that may cool demand for iron ore and copper.

The metals rally has boosted concerns about short-term Chinese demand. Some manufacturers and end-users have been slowing production or pushing back delivery times after costs surged, while weaker-than-expected domestic consumption has opened the arbitrage window for exports.

Tin climbed as much as 2% to $30,280 a ton on the LME, boosted by rising orders for the soldering metal. Tin is at the highest since May 2011, with a 48% gain this year making it the best performing metal on the LME.



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