Glencore Xstrata Plc Kiboshes Australian Iron Ore Production

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Glencore Xstrata, producing much less iron ore than BHP Billiton or Rio Tinto, and considering this iron ore forecast, has decided that it’s not worth it.

According to Reuters, the company’s two-year magnetite production experiment at the Ernest Henry mine is over: “The business case, which made magnetite production a positive contribution to Ernest Henry’s operations, is not supported in the current market,” an Ernest Henry Mining spokeswoman said. “Falling revenue, increasing production costs and ongoing high logistics costs in getting our product from mine to market have eroded the margins in this business.”

Today, the Chinese price of iron ore 58% fines from India remained rangebound, but the cash price of steel billet saw the biggest increase on MetalMiner’s daily price index at 8.3 percent on the LME, finishing at $130.00 per metric ton for Monday, July 15.

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Monday closed the steel billet 3-month price at $155.00 per metric tonon the LME, after moving up 3.3 percent.

Chinese steel closed mixed yesterday. Following three days of little change, the price of Chinese slab rose by 0.6 percent.

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The price of Chinese HRC was essentially unchanged.

The 3-month price of the US HRC futures contract saw little change in its price on Monday at $610.00 per short ton. For the fifth consecutive day, the spot price of the US HRC futures contract held flat at $635.00 per short ton.

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