Iron Ore

Australia is the largest iron ore producer in the world. Iron ore is Australia’s biggest export earner. In 2014 it contributed around $75 billion in export revenues, providing a major source of income for the country. China is the largest consumer of iron ore, and most of Australia’s iron ore exports go to China. The Middle Kingdom’s relentless industrialisation and stimulus-based infrastructure spending over the past decade or so has resulted in growing demand for Australia’s iron ore. To satisfy this increase in demand, Australia has increased its production significantly. BHP Billiton Ltd [ASX:BHP] and Rio Tinto Ltd [ASX:ASX] are the largest producers, followed by Fortescue Metals Ltd [ASX:FMG]. Fortescue established itself after seeing the rise of China and realising what this would mean for future iron ore demand.

Iron Ore Price History

Despite China’s robust growth, the iron ore price is volatile. It rose to a high of nearly US$180/tonne in 2013, before plunging to around US$40/tonne in late 2015. It then recovered to around $90/tonne, before falling again. As nearly all iron ore production receives the ‘spot price’ (as opposed to a fixed long-term contract price), these fluctuations have a major impact on the profitability of Australian producers. During the iron ore price downturn from 2013–15, a number of iron ore producers nearly went under.

Best Iron Ore Investments?

Iron ore production is a ‘scale’ game. The more you can produce, the better and cheaper it is. That’s why Australia’s three big producers, as well as Brazil’s Vale, dominate the global market. Iron ore, thanks to its huge export earnings, also has a major effect on the Aussie economy. When prices rise, it’s good for the economy, but when prices fall, it has a negative effect.

Iron Ore Prices Were Jumbled in Monday’s Trading

Iron ore prices continued their jumbled performance in Monday’s market, despite recurring strength in Chinese steel prices.Metal Bulletin recorded the spot price at $67.81 a tonne, while benchmark 62% fines slipped 1%, breaking a four day 3.7% rally during this time...

How BHP Billiton Dropped in Share Value by 2.39% Today

Trading simply hasn’t been going well lately in regards to minerals and resources across the American region. Australian shares have been described as underweight by the US banks. And large companies such as BHP Billiton are suffering due to a lack of interest across international fronts.

The Tipping Point

The US dollar rally has barely paused for breath since getting underway in February. Late last week, it took its toll on commodities. Oil fell nearly 3%. Iron ore fell 3.7%, while aluminium declined 0.7%. What will happen next?

Blackham Resources Share Price Grows by 3.90%

Blackham Resources [ASX:BLK] have reduced ore recovery costs by 30% by taking advantage of an excising CIL plant. Its shares rising in value by 3.90% displays how efficient their choices have been in regards to productivity and development. Will it grow further? Find out more...
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