International news within the industry of mining and metal, Jul, 17 2019
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The iron ore price up 73 per cent

Iron ore mine. Photo: Creative Commons, credit: OliverMagritzer
Iron ore mine. Photo: Creative Commons, credit: OliverMagritzer
Published by
Markku Björkman - 04 Jul 2019

 

The iron ore price has risen by as much as 73 per cent this year compared to last year, but the price increases are mainly driven by a reduced supply caused by Brazilian Vales production cuts after the devastating dust disaster there and tropical storms in Australia that have hit hard the country's export ports for iron ore.

But Vale has already been granted permission to increase production in Brazil again and from the port of Port Hedland in Australia, the world's largest iron ore hub, recent statistics show that deliveries there increased by 20 per cent in June this year compared to the same period in 2018.

Of the greatest importance for the iron ore price is the Chinese steel production and it may already have hit the ceiling. It peaks this year at 940 tonnes a year before it will steadily decline, according to statistics from the Australian Ministry of Industry.

This, combined with the fact that deliveries will soon be back at normal levels, is expected to halve the iron ore price by 2021, according to Australian authorities. The forecast is that the iron ore price will average $ 80 a tonne this year before falling to an average of $ 57 per tonne in 2021.

Source: Mining.com