Iron ore price jumps above $US57
The iron ore price rose 1.8pc, building on last week’s gains ahead of major miners’ production reports.
The iron ore price has jumped above $US57 a tonne, building on last week’s run of gains as investors prepare to examine production reports from the major miners this week.
Iron ore added 1.8 per cent to $US57.80 overnight, according to The Steel Index, from $US56.80 in the previous session.
The commodity has not fallen for the past six sessions in a row, bouncing after its earlier drop below the budget estimate level of $US55 a tonne. The key export is continuing to defy analyst tips of a drop into the $US40s, although it remains below its August peak of $US61.80.
In London trade, BHP Billiton fell 1.2 per cent, while Rio Tinto lost 0.3 per cent, with the miners’ September quarter production reports in focus. BHP will report on Wednesday and Rio on Thursday.
BHP is likely to have a “solid result, quarter over quarter, with most commodities performing well”, analysts at Goldman Sachs said in a research note.
The bank expects that BHP produced 55.6 million tonnes of iron ore in the quarter, a 9 per cent fall from the previous corresponding period, but tips higher production of other commodities including copper and metallurgical coal.
From Rio, Goldman expects “a broadly in-line production result”, with iron ore production increasing 2 per cent but shipments falling 4 per cent compared to the prior corresponding period. The bank expects a rise in aluminium and copper production and a fall in thermal coal.