Iron Ore Have Great Effects On Mining Industry

FT reports iron ore prices hit a three-month high above $180 a ton on Thursday as

supply outages and strong demand from China underpinned the steelmaking commodity.

Started in 2008, derivatives trading in iron ore is up fourfold this year after setting a record in July, but he worlds top three miners BHP Billiton, Vale and Rio Tinto control nearly 70% of the 1 billion ton annual seaborne trade and dominate price talks.

BHP this week announced record profits on back of earnings from iron ore, its biggest division, which jumped 122% to $13.3 billion and CEO Marius Kloppers said unlike the situation in coal, global iron ore supplies are being overestimated.

MINING.com reported on Tuesday New York brokerage GFIs announcement that it now offers on-screen iron ore swap trading is the latest indication that the economics of the worlds foremost dry bulk commodity are being changed fundamentally.

MINING.com on Sunday reported the iron ore price rise has eclipsed that of gold as China construction continues unabated and global blast furnace growth over the next five years is predicted to rise by a staggering 300 million tons.

FT.com reports the strength of iron ore, which is traded mostly in physical markets between miners, trading houses and steel producers, contrasts with weakness for base metals such as copper, which are more exposed to financial flows at the London Metal Exchange.

Platts quoted BHP Billiton CEO Marius Kloppers as saying iron ore supplies around the world were already at their limit and could not as easily meet demand. Also, while he was optimistic about BHP Billitons iron ore production expansion pipeline in Australia and demand from China, he seemed less enthused about prospects to expedite its metallurgical coal developments, based on Australias carbon taxation issues and competition from the US.

From above, we know that the price of iron ore will get a new level, and which will bring new chance to mining industry and ore-dressing equipments manufacturers. The ore-dressing equipments such as ball mill, rotary kiln will be popular products once again.

by: jocelyn

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