{"id":602,"date":"2014-11-24T08:33:16","date_gmt":"2014-11-23T21:33:16","guid":{"rendered":"http:\/\/www.bnmme.com.au\/?p=602"},"modified":"2014-11-24T08:33:16","modified_gmt":"2014-11-23T21:33:16","slug":"iron-ore-hits-the-dreaded-us70-a-tonne-mark","status":"publish","type":"post","link":"https:\/\/yinghuiinternational.com\/index.php\/2014\/11\/24\/iron-ore-hits-the-dreaded-us70-a-tonne-mark\/","title":{"rendered":"Iron ore hits the dreaded $US70 a tonne mark"},"content":{"rendered":"

\"resizeIronore\"<\/a>Investors are ditching iron ore miners as the price of the commodity tumbles to a new five-year low of $US70 a tonne.<\/p>\n

This is the third record low in as many days for iron ore which has now shed 50 per cent of its value since the start of the year.<\/p>\n

The week\u2019s free fall has spelt more bad news for iron ore miners.<\/p>\n

Fortescue Metals Group shares have fallen by 55 per cent since February and closed $2.74 yesterday, a level not seen since the global financial crisis.<\/p>\n

BC Iron and Mt Gibson also saw double digit percentage falls and are trading at 56 cents and 38 cents respectively.<\/p>\n

BHP Billiton and Rio Tinto were cushioned from major sell-offs because of their lower operating costs and diversified portfolios, but fell by 2 per cent yesterday.<\/p>\n

The fresh low comes as data out of China shows the average price of new houses slumped for the sixth month in a row.<\/p>\n

Deltec chief investment officer Atul Lele said this means that housing supply is outstripping demand which is bad news for the country\u2019s steel sector, AFR reported.<\/p>\n

\u201cWe believe it represents the biggest risk to the Chinese and global economy,\u201d Lele said.<\/p>\n

Citigroup predicts iron ore will fetch $US72 a tonne for the first quarter of 2015 and crash to lows of $US60 a tonne in the third quarter before lifting again slightly by the end of the year.<\/p>\n

The slump in prices has already seen two iron ore operations in Australia close with fears there are more to come as break-even costs are being tested.<\/p>\n

Western Australia’s budget is also expected to have a multi-billion hole where iron ore royalty payments used to live as a result of the falling price.<\/p>\n

This caused Premier Colin Barnett to hit out at BHP and Rio last month, accusing them of flooding the market with new supply which has forced prices down.<\/p>\n

Barnett said he does not want to see iron ore mining in WA to revert to a duopoloy.<\/p>\n

“By their own admission, the major companies are pushing increasing volumes on a month to month basis into the market, very conscious that is contributing to price falls in an already depressed market and very conscious by those quotes as an example of the impact this will have on smaller iron ore producers,” the premier said.<\/p>\n

Speaking at a conference in Sydney, Rio Tinto boss Sam Walsh said Barnett shouldn\u2019t complain about the company\u2019s strategy to increase production seeing as the government signed off on the plan.<\/p>\n

“I’m not sure where Colin is coming from in that given that we’ve been very clear in our plans and our expansions are approved by government,” Walsh said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Investors are ditching iron ore miners as the price of the commodity tumbles to a new five-year low of $US70 a tonne. This is the third record low in as many days for iron ore which has now shed 50 per cent of its value since the start of the year. The week\u2019s free fall … Continue reading “Iron ore hits the dreaded $US70 a tonne mark”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6],"tags":[],"class_list":["post-602","post","type-post","status-publish","format-standard","hentry","category-mines-and-quarry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p83F9T-9I","jetpack-related-posts":[{"id":614,"url":"https:\/\/yinghuiinternational.com\/index.php\/2014\/11\/28\/the-2015-metals-outlook-series-iron-ore\/","url_meta":{"origin":602,"position":0},"title":"The 2015 Metals Outlook Series: Iron Ore","author":"yinghui","date":"November 28, 2014","format":false,"excerpt":"While the mining boom was tied to the skyrocketing gold price and the massive demand in coal, what really created it was iron ore: the explosion in the metal's price is what really drove the mining boom to its spectacular highs, lifting Australia out of the Global Financial Crisis that\u2026","rel":"","context":"In "Mines and Quarry"","block_context":{"text":"Mines and Quarry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/"},"img":{"alt_text":"The-2015-Metals-Outlook-Series-Iron-Ore-657949-xl_1","src":"https:\/\/i0.wp.com\/www.bnmme.com.au\/wp-content\/uploads\/2014\/11\/The-2015-Metals-Outlook-Series-Iron-Ore-657949-xl_1.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.bnmme.com.au\/wp-content\/uploads\/2014\/11\/The-2015-Metals-Outlook-Series-Iron-Ore-657949-xl_1.jpg?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.bnmme.com.au\/wp-content\/uploads\/2014\/11\/The-2015-Metals-Outlook-Series-Iron-Ore-657949-xl_1.jpg?resize=525%2C300 1.5x"},"classes":[]},{"id":678,"url":"https:\/\/yinghuiinternational.com\/index.php\/2014\/12\/21\/rio-tinto-didnt-expect-iron-ore-to-crash-this-low-cfo\/","url_meta":{"origin":602,"position":1},"title":"Rio Tinto didn\u2019t expect iron ore to crash this low: CFO","author":"yinghui","date":"December 21, 2014","format":false,"excerpt":"Head of finance at Rio Tinto said the falling price of iron ore, coal and oil has come as a surprise to most in the industry. Iron ore is battling losses of nearly 50 per cent while oil has lost around 40 per cent of its value. Coking and thermal\u2026","rel":"","context":"In "Mines and Quarry"","block_context":{"text":"Mines and Quarry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":804,"url":"https:\/\/yinghuiinternational.com\/index.php\/2015\/02\/02\/nullagine-joint-venture\/","url_meta":{"origin":602,"position":2},"title":"Nullagine Joint Venture","author":"yinghui","date":"February 2, 2015","format":false,"excerpt":"The Nullagine Joint Venture (NJV) is an unincorporated 75:25 joint venture between BC Iron and Fortescue Metals Group (Fortescue), which is located approximately 150km north of Newman in the Pilbara region of Western Australia. The NJV is a producing iron ore mine with the capacity to export up to 6Mtpa\u2026","rel":"","context":"In "Mines and Quarry"","block_context":{"text":"Mines and Quarry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/"},"img":{"alt_text":"Nullagine-Joint-Venture-location","src":"https:\/\/i0.wp.com\/www.bnmme.com.au\/wp-content\/uploads\/2015\/02\/Nullagine-Joint-Venture-location.jpg?resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.bnmme.com.au\/wp-content\/uploads\/2015\/02\/Nullagine-Joint-Venture-location.jpg?resize=350%2C200 1x, https:\/\/i0.wp.com\/www.bnmme.com.au\/wp-content\/uploads\/2015\/02\/Nullagine-Joint-Venture-location.jpg?resize=525%2C300 1.5x"},"classes":[]},{"id":1139,"url":"https:\/\/yinghuiinternational.com\/index.php\/2015\/12\/01\/iron-ore-slips-below-40\/","url_meta":{"origin":602,"position":3},"title":"Iron ore slips below $40","author":"yinghui","date":"December 1, 2015","format":false,"excerpt":"Iron ore has finally slipped below the new US$40 per tonne watermark. This is a worrying new low for the market, as the iron ore futures fell under the US$40 per tonne price point, according to Bloomberg. The SGX AsiaClear contract price for January slumped to US$39.67 a tonne, and\u2026","rel":"","context":"In "Mines and Quarry"","block_context":{"text":"Mines and Quarry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":632,"url":"https:\/\/yinghuiinternational.com\/index.php\/2014\/12\/02\/iron-ore-could-be-in-trouble-for-over-ten-years\/","url_meta":{"origin":602,"position":4},"title":"Iron ore could be in trouble for over ten years","author":"yinghui","date":"December 2, 2014","format":false,"excerpt":"An analyst out of China has warned the price of iron ore could fall to lows of $US50 a tonne. Shanghai Jianfeng vice-president Liang Ruian said oversupply coupled with a slowing property market in China could mean the price rout lasts for 10 years. Speaking to The Australian Liang said\u2026","rel":"","context":"In "Mines and Quarry"","block_context":{"text":"Mines and Quarry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1032,"url":"https:\/\/yinghuiinternational.com\/index.php\/2015\/10\/14\/iron-ore-to-slump-again-in-2016\/","url_meta":{"origin":602,"position":5},"title":"Iron ore to slump again in 2016","author":"yinghui","date":"October 14, 2015","format":false,"excerpt":"Analysts predict further slumps for iron ore in 2016, as new projects such as Roy Hill come online and swing into full production. Weak demand growth in China and a stronger US dollar will ensure iron ore prices stay down, according to BMI Research. A report from BMI stated that\u2026","rel":"","context":"In "Mines and Quarry"","block_context":{"text":"Mines and Quarry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/mines-and-quarry\/"},"img":{"alt_text":"5566486-3x2-340x227_1","src":"https:\/\/i0.wp.com\/www.bnmme.com.au\/wp-content\/uploads\/2015\/10\/5566486-3x2-340x227_1.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/posts\/602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/comments?post=602"}],"version-history":[{"count":0,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/posts\/602\/revisions"}],"wp:attachment":[{"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/media?parent=602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/categories?post=602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yinghuiinternational.com\/index.php\/wp-json\/wp\/v2\/tags?post=602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}