Australia reopens port as threat on cyclone declines

Author: Paul Ploumis21 Jan 2015 Last updated at 06:09:03 GMT

CANBERRA (Scrap Monster): The Hedland port, which is used by BHP Billiton, and also Fortescue Metals, which contributes about one fifth of the all the sea borne iron ore trade in the country was closed down for about 10 hours. At the same time the port of Dampier, where Rio Tinto ships its iron ore, was closed for about 17 hours, according to the authority.

The forecaster earlier stated that, the threat of the cyclone, which was said to be developing in the warm waters of the Indian Ocean, off the Pilbara region of the Western Australia has eased. A decline in the tropical on Monday showed the signs of the intensifying strength of the cyclone, which lead the authority to close the ports and also to order all the ships to evacuate.

The analysts, stated that, the temporary closure of the ports would no good to control the global supply glut which is declining the price of iron ore. The value of the commodity resides at 67.80 dollars per tonne, which is near to a 5 and ½ year low of about 65.50 dollars in the month of December. Any decline in the shipments from the port would be seen in the monthly export, which is made by the port authority.