Some data to catch up on. The Baltic Dry is going bananas on the energy panic in coal:
With iron ore falling, this is not helping mining margins as shipping and deisel go through the roof.
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Brazilian iron ore supply had a softer month in September at 33.7mt though that was down to fewer days than last year:
And the trend higher continues:
Australian supply is set to rise in Q4 as well. Westpac:
September iron ore exports hit 76mt as maintenance impact wanes
Unseasonal maintenance was a constraint on iron ore exports from Australia through Q2 and the beginning of Q3 as Rio completed a five-week maintenance shut at East Intercourse Island in July and we assume BHP completed maintenance at Nelson Point No.1 car dumper at Port Hedland in August.
With maintenance now behind us, export activity has picked up and our initial estimate for Port Hedland exports hit a 4-month high at 49.5mt, lifting total exports for Australia for September to an initial forecast of 76mt.
RIO is talking nonsense:
The world needs Guinea’s massive iron ore deposit Simandou to be developed, Rio Tinto’s CEO said on Thursday, despite uncertainty in Guinea after last month’s coup.
“There is, of course, a bit of uncertainty about Guinea at this point in time, but fundamentally nothing has changed; namely, that there is a need for the world to develop Simandou,” Rio Tinto CEO Jakob Stausholm said.
To wit, the above and the below:
Australia’s biggest new iron ore mine in more than 50 years has officially opened and while it would appear the timing could be better, the behemoth operating it is unfazed.
BHP began production at its $US3.6bn ($A4.98bn) South Flank mine, 56km northwest of Newman in Western Australia’s Pilbara region, in late May – shortly after the iron ore price hit a record $US233 per tonne.
Indian ore exports have now collapsed as well as the global glut spreads. We need more iron ore like we do a hole in the head.
Chinese markets reopen today. Iron ore should resume its decline soon, especially since coking coal has decoupled from reason on the energy crisis.
But who knows in the very short term? These markets are crazy.