SYDNEY: Monthly iron-ore shipments to China through Australia’s Port Hedland rose 3% in November amid a sharp weakening in prices for the raw material used in steel production, port data released on Monday showed.
Shipments to China, the world’s biggest importer, reached 31.73-million tonnes last month versus 30.73-million in October, according to the Pilbara Ports Authority.
The port, the world’s largest for exporting iron-ore, is used by large producers such as BHP Billiton and Fortescue Metals Group, along with smaller miners Atlas Iron and BC Iron. Total shipments of iron ore through the port in November reached 37.33-million tonnes versus 36.52-million in October, the data showed.
The record was set in September, when 39.4-million tonnes were shipped through the port. South Korea, was the second-biggest destination for ore from the port in November, importing 2.87-million tonnes, followed by Japan with 1.53-million tonnes. The price of iron ore deteriorated to fresh lows in late November and continued its decline in the first week of December, standing at $39.40 a tonne on December 4.
Despite the price deterioration, aggravated by mounting global oversupply and waning steel production growth in China, miners continue to run at peak levels. BHP expects to mine 247-million tonnes by next July, while Fortescue is running at an annual rate of around 165-million tonnes, making them the third and fourth highest producers worldwide after Vale and Rio Tinto.
