Big things are happening for Australia’s “big three” iron ore miners: Rio Tinto, BHP, and Fortescue. All three miners “are set to unveil a boost in third-quarter production and will mine even more in the fourth quarter, ignoring forecasts of a looming supply glut in favour of capturing greater economies of scale” reports Reuters.
“Rio Tinto, which is set to post a 3 percent rise in third-quarter output against the previous quarter to 53 million tonnes on Tuesday, is expected to announce a further mine expansion to 360 million tonnes a year by a Dec. 3 meeting with investors.”
“Fortescue is set to unveil on Thursday a 20 percent output increase to just under 30 million tonnes for the three months to end-September, and BHP Billiton a 4 percent rise on Oct. 24 to just under 50 million tonnes.”
“BHP is developing new mines with an initial production capacity of 35 million tonnes a year, boosting overall capacity to 220 million tonnes annually by late 2014.”
The steel billet cash price saw the biggest upwards shift for the day, rising 7.1 percent on the LME to close at $225.00 per metric ton on Friday, October 11. The steel billet 3-month price experienced a big shift last Friday, gaining 6.4 percent on the LME to finish at $250.00 per metric ton.
Chinese steel closed mixed last Friday. The price of iron ore 58% fines from India were range bound. Chinese slab prices inched up 0.3 percent. The price of Chinese HRC saw little movement.
The 3-month price of the US HRC futures contract remained essentially flat at $635.00 per short ton. The spot price of the US HRC futures contract flattened at $643.00 following two-days of declines.