Iron ore cargoes from world’s biggest export hub surge to record

SINGAPORE: Iron ore cargoes from the world’s biggest bulk export terminal jumped to a record, as miners in Australia rush to cash in on rising prices, and steelmakers in China replenish stocks to prepare for a revival in demand after a winter clampdown on output eases.

Exports from Australia’s Port Hedland climbed 5% from a year ago to 46.1 million tonnes in December, topping the previous high of 44.1 million tonnes in May, according to a statement from the Pilbara Ports Authority.

For all of last year, shipments totalled 497 million tonnes, also a record, according to Bloomberg calculations based on official data.

Iron ore rallied into a bull market last month as investors shrugged off the nearterm impact of China’s winter curbs on steel supply to fight pollution – which have hurt ore consumption and boosted port holdings – to home in on the prospect of a rebound in demand when the restrictions end.

That has spurred a flurry of restocking by steel mills, according to Chinese brokerage Sinosteel Futures Co, especially of higher-grade material including ore produced by BHP Billiton Ltd, which ships through Port Hedland.

“Iron ore’s latest advance indicates expectations for a springtime recovery in steel production,” Everbright Futures Co analyst Wang Ying said in a note.

“Even though port inventories in China are very high, prices can probably be sustained for a while.”

SGX AsiaClear futures climbed 0.5% to US$76.30 a tonne at 10:37am in Singapore yesterday, a four-month high. Last month, prices advanced 6.2% to extend their 17% gain in November.

Port Hedland is the main maritime gateway to Australia’s Pilbara, centre of the nation’s iron ore industry, and handles supplies from BHP, Fortescue Metals Group Ltd and Roy Hill Holdings Pty Ltd.

Roy Hill is seeking to boost exports to 60 million tonnes a year from 55 million, The Australian newspaper reported on Tuesday, citing documents submitted to the government. — Bloomberg