Results for: Iron Ore

Commodity trading giant Trafigura has been identified as the buyer in Mineral Resources’ $400 million prepayment deal for iron ore. This agreement, initially announced in July without disclosing the client’s name, signifies Trafigura’s aggressive expansion in the iron ore market, where its volumes have surged over fivefold in the past decade. The prepayment will secure a stable supply of iron ore for Trafigura between 2026 and 2028, while Mineral Resources seeks to manage its rising debt and navigate the challenging iron ore market.

BHP Group, a leading mining company, reported a 2% increase in underlying attributable profit for fiscal 2024, driven by higher prices and sales volumes in iron ore and copper operations. The company also delivered record iron ore production and a 9% increase in copper production. Despite lower energy coal and nickel prices, BHP’s solid financial performance was aided by productivity initiatives and cost discipline.

A new study reveals that the world’s largest iron ore deposits in Western Australia formed during the breakup of the ancient supercontinent Columbia around 1.4 billion years ago. This discovery challenges previous assumptions about the deposits’ age and provides insights into the formation of mineral wealth linked to tectonic events.

The price of iron ore has seen a week-over-week increase to approximately $118 per ton despite indicators suggesting a softness in the fundamental aspects of the market. Iron ore port inventories have remained broadly flat, diverging from the usual seasonal trends. The expected seasonal surge in demand has been described as modest, which is reflected in the China Iron and Steel Association’s (CISA) pig iron production figures for the first ten days of April and the MySteel blast furnace utilization rates. Iron ore supply, on the other hand, has shown an uptick. Shipments from traditional markets have risen by 4% year-to-date. This increase includes a notable performance from Brazil.