Port Hedland Iron Exports to China Climb as Prices Sink

By Phoebe Sedgman

(Bloomberg) — Iron ore shipments to China from Australia’s Port Hedland elevated 3.2 p.c final month from February as mining firms on the earth’s largest exporter boosted output, hurting costs amid a worldwide glut.

Exports to China totaled 31.2 million metric tons in March, probably the most since October, in line with knowledge from the Pilbara Ports Authority. That compares with 30.26 million tons in February and 27 million tons a 12 months earlier, knowledge present. Total iron ore shipments from the world’s largest bulk-export terminal have been 36.6 million tons from 35.7 million tons a month earlier and 34.4 million tons in March 2014, port authority knowledge confirmed.

Iron ore costs collapsed 18 p.c final month as low-cost producers in Australia together with BHP Billiton Ltd., which routes cargoes by Port Hedland, boosted shipments amid slowing development in China. A name in March by Fortescue Metals Group Ltd., which additionally makes use of Port Hedland, for main miners to cap provide to revive costs was spurned by rivals, with Rio Tinto Group Ltd. describing the proposal as “hare-brained.” Global iron ore demand will contract this 12 months, in line with Deutsche Bank AG.

Ore with 62 p.c content material at Qingdao sank 34 p.c because the begin of the 12 months, in line with each day knowledge from Metal Bulletin Ltd. The uncooked materials retreated to $47.08 a dry ton on April 2. That’s the bottom worth since 2004-2005, based mostly on each day and weekly knowledge from Metal Bulletin and annual benchmarks compiled by Clarkson Plc, the world’s largest shipbroker.