Metals Market Update: Iron Ore Prices Surge Amid Supply Risks

Metals – Iron ore supply risks

Metals – Iron ore supply risks

Iron ore prices saw some further strength yesterday with the market rallying by a little more than 1.7%, taking it above $121/t. On the demand side, there appears to be a bit more optimism around China. But there are also growing supply risks, namely, potential strike action in Australia. Train drivers at BHP operations in Western Australia voted in favour of taking protected industrial action. The current agreement covers about 500 train drivers carrying iron ore from BHP’s Pilbara mines around Newman to Port Hedland. Hence, any strike action could lead to supply disruptions.

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Topics

china Australia metals iron ore supply chain agreement supply disruptions supply risks market rally industrial action strike action demand optimism BHP operations Western Australia train drivers Pilbara mines Newman Port Hedland

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