Australia’s top iron port keeping busy

Australia’s top iron port keeping busy

Despite China’s recent shortfall in demand, Australia’s iron ore port is busier than ever.

According to the world’s largest bulk-export terminal, exports from Port Hedland increased to record highs in March.

The port handles shipments from BHP Billiton Ltd (ASX:BHP), Foretescue Metals Group Ltd (ASX:FMG) and Roy Hill Holdings Pty.

Shipment totals rose to 39.53 million metric tonnes last month from 36.63 million in February according to port authority data. Goods to China reached 32.6 million tonnes compared with 29.14 million tonnes in February.

Chinese policy makers indicated their interest and prices have dropped in the past few weeks, while iron ore has had a period of sustained increases in 2016.

Port Hedland is a maritime entrance to economical supply from the world’s largest production centre, the Pilbara.

Australia’s suppliers have “started to ramp up output after a weak start to the year,” said Xu Huimin, an analyst at Huatai Great Wall Futures Co. “That’s caused prices to be a bit weaker recently as China’s demand couldn’t keep up.”

@RGNonline