Iron miners suffer from a hike in export

Author: Paul Ploumis
07 Jan 2015 Last updated at 04:15:13 GMT
CANBERRA (Scrap Monster): BHP Billiton as well as the Fortescue Metal Group, the major exporters of the port, had expanded their operations, and as a result, about 219 million tonnes of iron ore were shipped through Port Hedland. The data show that the shipments from the port in the year of 2014was exactly 49.3 million tonnes, or 29 percent higher than the export in the second half of the year 2013. The data also show that in the Decemeber half exports were 26.3 million tonnes higher than the iron ore shipped in the year 2010-201, when the price of the commodity was at its highest.

The data, which was released by the Pilbara Ports Authority, states that the iron ore producers in the Pilbara exported about 37.8 million tonnes of iron ore via Port Hedland in December, which is 26 percent higher than the export rates in the same month in the year 2013.

The increase in the production of iron ore among the miners came up with a serious cost. The benchmark price of iron ore, which was noted to be 160 dollars per tonne in the year 2010-2011, had declined to about 82 dollars per tonne in the second half of the year 2014.

Even when the decline in the price had destructed the shares of many producers in the second half of 2014, there are chances of relief for the shareholders, as there are unconfirmed news that, China is planning to speed up its infrastructure renovation.

The iron ore future in the Dalian Exchange hiked by about 2.8 percent, after the news regarding the Chinese government’s plan to track down about 1 trillion dollars, in order to spend the money to support the economic growth of the country, and to hike up the growth rate by 7 percent. But the claims made by the media, has not been made official by the Chinese Press, and in addition, the government of the country itself had claimed in several occasions that the country is moving its focus of development farther away from infrastructure