Currently viewing Global edition

Iron ore price surges towards highs

The iron ore price has surged after production misses by major producers Vale and Rio Tinto.
Iron ore price surges towards highs Iron ore price surges towards highs Iron ore price surges towards highs Iron ore price surges towards highs Iron ore price surges towards highs

A truck at Newman, part of BHP’s Western Australian iron ore operations

Staff reporter

Brazil-based Vale's March quarter output was below analysts' expectations and 19.5% less than the previous quarter, while Rio Tinto's output was 2% lower year-on-year.

Meanwhile BHP today said it had achieved record March quarter production at its Western Australian iron ore operations, 4% more than a year ago, however it also missed expectations and its shares were down almost 2% in morning trade.

The MySteel 62% Australian iron ore fines reached US$181 per tonne yesterday, the highest point since the index began.

Elsewhere, the S&P Global Platts 62% price rose 3.6% to $187.75/t CFR to China, within $6 of its high reached 10 years ago.

Rio closed down 2.2% in London yesterday and Vale was down about 1.5% in Brazil.

Australia's "third force in iron ore", Fortescue Metals Group, is due to release its quarterly results next week and was also off about 1.5% in morning trade.

Elsewhere, precious metals producer Fresnillo rose slightly in London and Barrick Gold gained 1.9% in Toronto, as the yellow metal gained a few dollars to $1,778 per ounce on the spot market.

 he ustralian 62 iron ore fines price ource loombergyteel The Australian 62% iron ore fines price. Source: Bloomberg/MySteel.