The Newswire

Your daily serving of financial goodness

Iron Ore Prices Jump After BHP Production Slowdown

Iron Ore Prices Jump After BHP Production Slowdown
Apr 23, 2015 By Imran Valibhoy

Iron ore prices have risen over 4 per cent overnight after BHP Billiton (ASX:BHP) announced a slip in production guidance. Iron ore for immediate delivery to the port of Tianjin, China was trading at US$52.90 per tonne while the Metal Bulletin price for delivery in the port of Qingdao rose 5.9 per cent to US$54.04. The commodity price for the steel-making ingredient had its largest gain in over two years. The Metals and Mining index on the ASX is up 1.36 per cent around noon on Thursday. Many analysts and government officials had previously projected prices to fall to US$35 per tonne, putting a major squeeze on Australian miners. Standard and Poor’s recently downgraded the debt rating on Fortescue Metals (ASX:FMG) amid concerns that the miner would struggle to make a profit at price point of US$50 or less per tonne.

The jump in iron prices has largely been contributed to an announcement by mining giant BHP. The world’s largest mining company decided to forego a Port Hedland harbour debottlenecking project, which will slow its targeted capacity to 290m tonnes. The company has still raised its guidance from 225m to 230m tonnes for the financial year. Other companies such as Atlas Iron (ASX:AGO) and Arrium (ASX:ARI) said they would also be limiting some iron ore projects in the near future. Rio Tinto (ASX:RIO) and Vale (BVMF:VALE5), the world’s second and third largest miners, both failed to meet production expectations in activity reports released recently. BHP is trading higher after the positive news, up 60c, or 1.98 per cent, at $30.87 per share around 12:44pm on Thursday. RIO has also made gains, up 85c, or 1.54 per cent, at $56.05 per share.

Share this article

Imran Valibhoy Author: Imran Valibhoy Apr 23, 2015

Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.

Simble Solutions strikes Synnex distribution deal in IoT play

Sydney-based independent software vendor (ISV) Simble Solutions (ASX:SIS) has struck a distribution agreement with Synnex Australia that sees the energy technology-focused firm tap into the distributor’s network of more than 6,000 partners around the country.


Sign Up for Free Trial
Recent Tweets
Recent News