Strong June end for Western Australian iron ore exports

Spanish Market: Metals
06/07/21

A strong end to BHP's financial year underpinned a 5pc above-average export performance by the four largest producers in the Pilbara region of Western Australia (WA) in the week to 3 July, despite ongoing underperformance at Rio Tinto's 45mn t/yr East Intercourse Island (EII) berths.

The four largest WA producers — Rio Tinto, BHP, Fortescue Metals and Roy Hill — loaded vessels with a combined 17.97mn deadweight tonnes (dwt) of capacity in the latest week, which was 5pc above average. Shipments were in line with the previous week, with gains by BHP and Rio Tinto offset by an easing in exports by Fortescue Metals.

Rio Tinto loaded vessels with 6.76mn dwt capacity in the week to 3 July, up from 6.05mn dwt the previous week and the highest level since mid-May when it closed its EII berths for maintenance. Rio restarted loading at EII on 26 June with a vessel departing on 28 June. Only four vessels have departed EII since the maintenance, implying that the berth is still operating below-usual rates. Rio's total shipments were 2pc above its annual rolling average of 6.62mn dwt/week, as it used the latent capacity in its rail and port systems to push up exports out of its other berths at Dampier and through Cape Lambert.

BHP shipped 12pc above average in the most recent week at 6.52mn dwt, up from 6.48mn dwt the previous week, as it pushed production ahead of the end of its financial year on 30 June. Initial estimates suggest that the firm shipped around 285mn t in 2020-21, which is at the top of its guidance of 276mn-286mn t.

Fortescue's shipments eased in the week to 3 July, after a strong run in May-June, to 3.3mn dwt from 3.96mn dwt the previous week and 7pc below its weekly average of 3.55mn dwt. Fortescue exported around 47.9mn t in April-June, according to initial estimates, which would beat the record quarter of 47.3mn t achieved a year earlier and put it on track to export around 181mn t in the year to 30 June, near the top of its guidance of 178mn-182mn t.

Roy Hill shipped 1.39mn dwt, down from 1.42mn dwt in the week to 26 June and 22pc above its rolling average of 1.15mn dwt.

The deadweight tonnage is the maximum capacity of the vessel and overestimates actual shipments by around 5pc.

China was listed as the destination for 76pc of shipments in the latest week, up from 75pc a week earlier. After including shipments with unconfirmed destinations — most of which are probably headed to China — the percentage was 80pc, in line with a week earlier and below the average of around 82pc.

Argus assessed the ICX iron ore price at $220.35/dmt cfr Qingdao on a 62pc Fe basis yesterday, up from $209.30/dmt on 1 June but down from a high of $235.55/dmt on 12 May. Yesterday's assessment increased from $167.45/t on 1 April and $159.90/t on 31 December.

By Jo Clarke

WA iron ore loadings mn dwt

Iron ore prices $/t

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

29/01/25

US Fed pauses, awaits Trump policy fallout: Update

Adds Powell comments. Houston, 29 January (Argus) — The US Federal Reserve today paused in its course of rate cuts begun last year while signaling it would wait to see the impacts of President Donald Trump's new policies — ranging from tariffs to expulsions of foreign farm workers — on the labor market and inflation before considering any changes to its "policy stance." In its first meeting of 2025, the Fed's Federal Open Market Committee (FOMC) held its federal funds rate unchanged at 4.25-4.50pc after cutting it by a quarter point each in December and November last year following a half-point cut in mid-September, the first cut since 2020. "In the current situation, there is probably some elevated uncertainty because of, you know, significant policy shifts in those four areas that I mentioned: tariffs, immigration, fiscal policy and regulatory policy," Fed chairman Jerome Powell told reporters. "The committee is very much in the mode of waiting to see what policies are enacted," Powell said. "We need to let those policies be articulated before we can even begin to make a plausible assessment of what their implications for the economy will be." "The economy is strong, the labor market is solid and the downside risks to the labor market we think has abated and continues on a sometimes slow and bumpy path," Powell said. "The broad sense of the Committee is we don't need to be in a hurry to adjust the policy stance." In December, the Fed penciled in 50 basis points worth of cuts for 2025, down from 100 basis points projected in the September median economic projections of Fed board members and Fed bank presidents. Fed fund futures have also indicated a likelihood of only 50 basis points of rate cuts this year on strong job growth and an uptick in inflation at the end of last year, along with concerns over Trump's plans to hike tariffs, expel illegal immigrants — many of whom work in agriculture, construction and services industries — and cut taxes. Those are all measures economists say are likely to unleash inflation and boost interest rates. Powell said Fed policymakers had heard that "businesses that are dependent on immigrant labor are saying that it is suddenly getting harder to get people," but that it had not showed up yet in aggregate labor data. Trump during his first term was openly critical of the Fed, which is independent of the executive branch, saying he wants a "say" in making monetary policy. "With oil prices going down, I'll demand that interest rates drop immediately, and likewise they should be dropping all over the world," Trump told the World Economic Forum last week in Davos, Switzerland. Asked if the Fed would continue to act independently of the executive branch, Powell replied: "This is who we are, this is what we do. We study the data, we analyze how it will affect the outlook, and the balance of risks, and we use our tools." The consumer price index (CPI) accelerated to an annual 2.9pc in December, a third month of gains from 2.4pc in September, which was the lowest since early 2021 before the economic reopening after Covid-19 lockdowns caused a supply-chain shock that sent CPI as high as 9.1pc in June 2022. The Fed, slow to react, began a series of rate hikes in March 2022 that took the target rate from near zero to more than five percentage points higher by July 2023, keeping it at 5.25-5.5pc through August 2024. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US Fed holds rate flat, signals vigilance on inflation

29/01/25

US Fed holds rate flat, signals vigilance on inflation

Houston, 29 January (Argus) — The US Federal Reserve held its target interest rate unchanged today, pausing its cycle of rate cuts begun last year while signaling it would be on guard against any outbreak of renewed inflationary pressures as policies enacted by President Donald Trump — ranging from tariffs to expulsions of foreign farm workers — are widely expected to spur inflation. In its first meeting of 2025, the Fed's Federal Open Market Committee (FOMC) held its federal funds rate unchanged at 4.25-4.50pc after cutting it by a quarter point each in December and November last year following a half-point cut in mid-September, the first cut since 2020. "The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid," The FOMC said in its statement. "Inflation remains somewhat elevated." "In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook," it said, repeating stock language from prior statements. "The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge" that could impede attainment of achieving the goal of 2pc annual inflation and low unemployment. In December, the Fed penciled in 50 basis points worth of cuts for 2025, down from 100 basis points projected in the September median economic projections of Fed board members and Fed bank presidents. But Fed fund futures have since indicated the likelihood of only 50 basis points of rate cuts this year on strong job growth and an uptick in inflation at the end of last year, along with Trump's plans to hike tariffs, expel illegal immigrants — many of whom work in agriculture, construction and services industries — and cut taxes. Those are all measures economists say are likely to unleash inflation and boost interest rates. Trump during his first term was openly critical of the Fed chief Jerome Powell and has made remarks signaling he wants a "say" in making monetary policy. "With oil prices going down, I'll demand that interest rates drop immediately, and likewise they should be dropping all over the world," Trump told the World Economic Forum last week in Davos, Switzerland. The consumer price index (CPI) accelerated to an annual 2.9pc in December, a third month of gains from 2.4pc in September, which was the lowest since early 2021 before the economic reopening after Covid-19 lockdowns caused a supply-chain shock that sent CPI as high as 9.1pc in June 2022. The Fed, slow to react, began a series of rate hikes in March 2022 that took the target rate from near zero to more than five percentage points higher by July 2023, keeping it at 5.25-5.5pc through August 2024. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK service centre USP announces £50/t sheet increase

29/01/25

UK service centre USP announces £50/t sheet increase

London, 29 January (Argus) — Large UK service centre USP Steels will increase its sheet prices by £50/t, with the first increments effective from 3 February. The company cited rising hot-rolled coil (HRC) offers and Eurofer's request for the European Commission to cut flat steel import quotas by 50pc as drivers of its increase. Prices could rise "rapidly" once the safeguard changes take place, USP said. Taiwanese mills have already cut their allocations for the UK in expectation of higher EU prices, the company added. Argus ' benchmark northwest EU HRC index rose to €587.25/t ex-works yesterday, up by €29/t since the start of January. The weekly UK HRC assessment has nudged up by £10/t over the same period, to £530/t ddp. While coil prices have been increasing, largely on the back of perceived supply cuts, end-consumption remains low, which has constrained sheet prices and massively squeezed service centre margins. Service centres still report losing business around £550-560/t ddp West Midlands in some instances, if not slightly below. Several service centres suggest some gaps are starting to appear, especially on higher grades such as S355, where a domestic producer appears to have reduced availability. EU mill offers, on the whole, have moved up, with prices now around £540-550/t ddp, although some are offering at higher prices. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Italian market lambasts lagging HRC contracts

27/01/25

Italian market lambasts lagging HRC contracts

London, 27 January (Argus) — Italian steel sellers are increasingly displeased by lagging index-linked contracts, particularly for hot-rolled coils (HRC) and derivative products, as they position for an upturn in prices on the back of constrained import supply. Service centres are currently shunning spot purchases in favour of contractual index-linked volumes, to mitigate against rising spot prices. Some sellers have actively tried to move away from index deals in recent years where they have perceived them as lagging fair market value. Argus ' domestic Italian index, which tracks spot market movements on a daily basis, has risen by €18.75/t so far in January, and a total of €29/t since the start of December. The market reached bottom at the end of September-start of October period, when it came close to €530/t ex-works, and in the last quarter was cautiously moving up, driven by signals of tightening import trade measures, to which Italian prices are particularly reactive, given the exposure to imported coils. And mills see prices increasing further on reduced import penetration caused by the European Commission's safeguard review, the results of which are expected later this quarter. European steel association Eurofer has requested a 50pc cut in flat steel import quotas as well as a melt and pour clause on Chinese steel, to protect against global overcapacity. It is not only sellers that are displeased with the lag in indices — buyers of coils said that while they see the spot market moving up, and therefore try to align their offers to end-users, they are unable to pass on the expected increase in costs. By Lora Stoyanova and Colin Richardson Steel HRC ex-works Italy €/mt Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump's wind order threatens US steel demand

24/01/25

Trump's wind order threatens US steel demand

Houston, 24 January (Argus) — An executive order signed by President Donald Trump this week threatens steel consumption by the burgeoning US offshore wind industry. Trump on Monday ordered that the offshore continental shelf be withdrawn from new wind energy leasing, effective 21 January until the order is revoked. While the order theoretically protects existing leases, Trump also ordered the secretary of the interior, in consultation with the US attorney general, to conduct ecological, economic, and environmental reviews to determine if the leases should be terminated or amended. "We're not going to do the wind thing," Trump said. Trump's withdrawal targets only wind energy leasing on federal property, and leaves leasing for oil and gas, mineral exploration and environmental conservation untouched. The order could cut demand for US platemakers such as Nucor and JSW USA, who have made investments in their operations to target the offshore wind industry. A single monopile can require upwards of 2,500 metric tonnes (t) (2,756 short tons) of steel, according to German-based producer EEW Group, which has been building a monopile production facility in Paulsboro, New Jersey, to serve the US offshore wind industry. Japanese trading company Mitsui, Spanish wind turbine manufacturer GRI Renewable Industries and Nucor announced in August that they were considering developing a joint venture wind tower plant on the US east coast. Nucor recently built a 1.2mn short tons (st)/yr plate mill in Brandenburg, Kentucky, that the steelmaker wants to use to supply plate to monopile structure production. JSW Steel, an Indian steelmaker, announced in June it would invest $110mn to upgrade its Baytown, Texas, plate mill so it could make plates for offshore monopiles. The Baytown mill produced nearly 121,000st of plate and pipe in the fourth quarter, up by 15pc from a year earlier. Trump is also attempting to halt at least one onshore wind project, pausing activities around the Lava Ridge Wind Project, a potentially 1,000MW system on public lands in Idaho. Trump called the Bureau of Land Management's approval in December "allegedly contrary to the public interest" and subject to "legal deficiencies". Interior will evaluate the project's record of decision and possibly conduct new analysis on the system. By Rye Druzchetta Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more