CANBERRA: Iron ore supply reaches 1.27 million metric tonnes a day in February through Australia’s largest port Hedland. It surpassed the previous high of 1.21 million tons a day in September. Daily shipments of the raw material to China averaged 1.08 million tons last month, ahead of the previous record of 1.033 million tons in August.
Low-cost iron ore producers in Australia including BHP Billiton Ltd. and Fortescue Metals Group Ltd., which route their cargoes through Port Hedland, are boosting shipments, seeking to squeeze out less competitive rivals. Prices sank 47 percent in 2014 and extended their decline this year as the jump in supplies spurred a glut just as China’s economy slowed. The port serves Australia’s ore-rich Pilbara region.
According to Ralph Leszczynski,Singapore based research head at Banchero Costa & Co “Australia has really been winning market share. Australian supplies are still growing, while high-cost mines in China and elsewhere are closing”.
Port shipment to china totaled 30.25 million tons in February compared with 30.15 million tons in January. The total exports were 35.7 million tons in February compared with 36.8 million in January and 27.8 million a year earlier.
