BHP Billiton Ltd, the world’s largest mining company, along with Rio Tinto, have had recent weather rain on their iron ore parade.
Reuters posits that the June rains, some of the worst on record, have effectively reduced the BHP and Rio’s iron ore production output in Western Australia and may affect iron ore prices – but as we’ve seen in the past, it’s hard to achieve dramatic price swings with weather disruptions (especially if events such as typhoons don’t happen).
Regardless, the biggest driver of iron ore price drops would be even lower Chinese demand for the stuff.
What Are Today’s Steel and Raw Material Prices?
The steel billet cash price saw a 3.7 percent increase on Thursday, July 11, reaching $140.00 per metric ton on the LME and making it the biggest mover for the day. The 3-month price of steel billet held steady on Thursday on the LME, remaining around $165.00 per metric ton.
Chinese steel closed mixed on Thursday. The price of iron ore 58% fines from India drifted slightly lower. Closing out a three-day flat streak, the price of Chinese HRC moved up 0.6 percent. The price of Chinese coking coal remained essentially flat.
The 3-month price of the US HRC futures contract fell 1.1 percent to $610.00 per short ton. The spot price of the US HRC futures contract saw little price change on Thursday at $635.00 per short ton.