In a sign of increased demand for iron ore in China despite lower spot prices, BHP Billiton and Fortescue Metals exported a combined 13.1 million tonnes of iron ore from Western Australia in March, up from 12.2 million tonnes in February.
Port Hedland Port Authority statistics released today show shipments to China increased to 9.1 million tonnes in March, up from 8.2 million tonnes in February.
That is consistent with China's record imports of 52 million tonnes of iron ore in March.
Deutsche Bank said Rio Tinto's quarterly production figures showed a 4 million tonne increase in its exports in March to 15.2 million tonnes.
''Rio is back in the chase for market share,'' said a Deutsche analyst, Peter O'Connor. ''We also sense that the iron ore business unit has a reasonably high degree of confidence in the sales order book for the balance of 2009.''
Brazil's Vale has also increased its shipments to China due to weak conditions in the European market. Citi said Vale, the world's largest iron ore producer, was attempting to lock in market share gains for future years by selling iron ore at spot prices.
Total iron ore exports from Brazil rose to 22 million tonnes in March from 15 million tonnes in February.
Miners have yet to settle a benchmark price. Rio is believed to be shipping ore at a 20% discount to this year's benchmark price and Fortescue at a 30% discount until a new benchmark price is set.
Analysts are tipping a 35% to 40% fall in the iron ore price from last year's record highs.
Source: Sydney Morning Herald
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