Daily iron ore price update (rivers of ore)

Advertisement
Iron_ore_conveyor

Find below the iron ore price table from May 10, 2013:

Capture

Not much movement, clearly.

Advertisement

Last week I didn’t bother reporting on BHP statements that it expects iron ore to fall. After all these were not new. But some new detail of the giant’s comments is available and is interesting:

BHP on Wednesday confirmed that its Jimblebar mine in Western Australia is on schedule and will be completed in the first quarter of 2014, adding 35 million tonnes to its annual output.

A 55 million tonnes ore handling facility will also be up and running should the company expand production in the region further. BHP Billiton in on track to up production this year by 5% to 183 million tonnes.

I know I’ve said it before but it’s worth repeating. BHP, Rio and FMG have between them 130 million tonnes of new iron ore capacity coming on line in the next 9 months. That’s roughly 11% of the total seaborne market.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.