Iron ore price lifts as BHP chief vents on cool reception

Iron ore continues to defy the naysayers pushing back within sight of $US60 a tonne, as BHP’s chief reacts to criticism.

Machinery operates in a pit at Rio Tinto Group's West Angelas iron ore mine in the Pilbara. Photographer: Ian Waldie/Bloomberg

The iron ore price has continued to bounce, defiantly pushing back within sight of the $US60 a tonne level and offering a boost to Australia’s major miners.

Iron ore added 0.3 per cent to $US58 a tonne overnight, according to The Steel Index, from $US57.80 the previous day. The commodity has now notched up seven straight sessions without a fall.

In London trade, BHP Billiton shares put on 1.6 per cent, while Rio Tinto rose 1 per cent.

The gains came after BHP chief executive Andrew Mackenzie said at a function in London that the “continual questioning of our economic and social contribution” in Australia was “chilling” compared to the reception the miner receives in socialist Chile, Fairfax Media reported.

BHP is set to report quarterly production results this morning. Deutsche Bank expects the miner’s iron ore output to be broadly flat, with its rail program continuing to progress.

But volumes are set to rise for thermal coal and fall for metallurgical coal, while staying steady for copper and US shale gas.

“Across the group, we expect all divisions to be tracking broadly in line with fiscal 2017 guidance,” Deutsche Bank analysts said in a research note.

Goldman analysts previously tipped a 9 per cent fall in iron ore output when BHP reports.