Iron ore shipped to China from Australia’s Port Hedland, the world’s biggest bulk-export terminal, climbed last month as suppliers increased output and mine shutdowns in China boosted demand for seaborne ore.
Shipments rose to 31.7 million metric tons in October from 29.8 million in September and 25.2 million a year earlier, according to port authority data. That’s near the record 32 million tons reached in August. Total exports rose to an all-time high of 37.5 million tons from 36.3 million in September and 28.9 million in October 2013, the data show.
Iron ore lost 42 percent this year as companies including BHP Billiton Ltd. (BHP), Fortescue Metals (FMG) Group Ltd. and Vale SA (VALE5) raised low-cost output in Australia and Brazil, spurring a global glut and forcing some capacity in China to close. There’s a risk the collapse in prices may have further to run as supplies mount, according to Moody’s Investors Service, which said it may cut producers’ ratings.
“The Australian miners are pumping out more products,” James Wilson, an analyst at Morgans Financial Ltd. in Perth, Western Australia, said by phone today. “There might be improved demand. Part of the reason is probably because Chinese miners are underwater at current prices as well.”
Ore with 62 percent content delivered to Qingdao declined 1.2 percent to $78.63 a ton yesterday, the lowest since Sept. 30, according to data from Metal Bulletin Ltd. The commodity fell to $77.97 on Sept. 29, the lowest since September 2009.
Port Hedland is part of the Pilbara Ports Authority and handles output from BHP, Fortescue Metals, Australia’s third-largest producer, and Atlas Iron Ltd. Shipments through Port Hedland represented 55 percent of the country’s iron ore exports last year and a quarter of global seaborne supply, according to government data.
China, which purchases about 67 percent of seaborne ore, is on course for the slowest full-year growth since 1990. HSBC Holdings Plc sees Chinese iron ore output tumbling 30 percent to 236 million tons next year.
Source: Bloomberg
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
![Steel Insights](/assets/images/news/coal-insights.jpg)
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
![Steel Insights](/assets/images/news/ICMW_Jan09.gif)
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
![Steel Insights](/assets/images/news/ISMW.gif)
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
![Steel Insights](/assets/images/news/SteelInsights.jpg)
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.