Australian ports have started to stop operations on Friday, February 7, preparing for Cyclone Damien. The Port of Dampier, which can handle about 140 million mt of iron ore per year, has been shut down on Friday, while Port Hedland has been cleared, according to official statements. Port Hedland is the biggest iron ore export port in Australia, used by almost all major miners. Cyclone Damien will be the first severe cyclone which will pass the Port Hedland area since December 2013. “Severe Tropical Cyclone Damien (Category 3) is expected to continue to intensify as it moves towards the coast. Damien is likely to cross the Pilbara coast between Whim Creek and Mardie during Saturday,” Australia's Bureau of Meteorology said.
Possible iron ore supply delays have supported prices, which were rapidly falling earlier this week. Prices for iron ore with 62 percent Fe content have added $0.3/mt today, Friday, to $82.8/mt CFR China, while offers for fines with 65 percent Fe have increased by $1/mt to $99.8/mt CFR, SteelOrbis has learned. Owing to the recovery on Thursday and Friday, iron ore prices (62 percent) have posted a decline of just $1.2/mt compared to last Friday, January 31.
Nevertheless, overall sentiments have not improved much as most market participants predict a downtrend for the coming week. “Demand concerns will stay the main price driver,” a trader said.
