On Tuesday, according to S&P Global Platts, the price of Australian ore rose 2 percent to $ 89.65 per tonne. This happened against the backdrop of declining forecasts for rock production by the mining giant BHP and the Australian-British concern Rio Tinto. The reason is a powerful storm that struck the coast of Western Australia.
Representatives of corporations said that due to failures and damage, they will be able to produce a total of 20 tons less than predicted this year. In addition, due to flooding on the railway sections leading to the port, train traffic was limited, which also led to significant losses.
Prior to that, iron ore prices jumped 20 percent due to the infamous dam break in southeastern Brazil. The tragedy claimed hundreds of lives, after which Weill, the largest producer of steel-making materials, significantly reduced production forecast. Taken together, these two events threaten to significantly reduce the opportunities for the global iron ore market.
- Until now, the steel industry in China - the world's largest consumer of iron ore - has not experienced much difficulty. But by the end of April, this may change, as China's steel mills begin to experience significant supply disruptions. If the price gets closer to $ 100 per ton, it is likely to force the largest consumer of iron ore to reactivate its strategic reserves, market experts suggest.
