Due to a cyclone developing off the coast of Western Australia, the Port of Hedland has been closed, according to the Pilbara Ports Authority. The closure prompted the clearing of more than 30 vessels, mainly large iron ore carriers. The port accounts for over half of Australia’s iron ore exports, handling more than a million metric tons a day from the Pilbara iron belt, the majority bound for Chinese steel mills. The port is used by three of Australia’s top four iron ore miners, BHP, Fortescue Metals Group and Gina Rinehart’s Hancock Prospecting.
Dampier Port, also a major iron ore hub used primarily by Rio Tinto, is presently operational but is being monitored for weather changes along with the Port of Ashburton. The Tropical Cyclone Joyce is expected to intensify Friday and into the weekend as it moves south.
According to commodities traders, a prolonged disruption to shipping from the ports could lead to a scramble for available cargoes and increase iron ore global prices.
According to the Bureau of Meteorology (BOM), the category one storm could hit land as a category three. It is expected to leave behind heavy rainfalls into the following week. Cyclone Joyce comes only two weeks after Cyclone Hilda crossed the coast near Broome, which brought strong winds and heavy rain to the Kimberley region.
On average, there are 10 to 13 tropical cyclones between November and April in the Australian region, four of which typically cross the coast, according to bureau data.