China

The price of Australian seaborne 62 per cent iron ore fines has topped $US130 per tonne for the first time since October 2021, thanks to increased Chinese steel production.

Thermal coal prices have risen above $US200 per tonne for the first time since November began, owing to Indonesia’s export ban while it manages domestic supply issues.

Australian Mining takes a look back at the year that was with a recount of the top 5 stories in 2021.  

Tasmania has clocked a third consecutive month maintaining 12-month export figures above $4 billion, underpinned by mined materials and metal scraps.

Australian gold mine production declined in the third quarter of 2021 allowing China to return to the top of the world’s gold production. 

Chinese steel mills have been ordered to curb production once again to reduce air pollution, in the same week iron ore prices crept back towards $US100 per tonne.

The price of 62 per cent Australian iron ore fines has dropped below $US90 per tonne for the first time since May 2020, marking a new low for the iron ore industry.

The price of 62 per cent Australian iron ore fines has dropped below $US100 ($134.6) per tonne for the second time in as many months, as China capped steelmaking capacities.

It was gold price, lithium demand and China’s appetite for copper that dominated much of the discussion at Mines and Money Online Connect at IMARC this week.

Interest in Australia’s metallurgical coal (met coal) has enjoyed a significant increase in recent times, as South Korea, Japan and Europe pounce on the popular resource.

China may begin to clear stockpiled Australian thermal coal imports into its domestic markets as demand ramps up across the country, according to Wood Mackenzie.

BHP remains optimistic about the trade tensions between Australia and China, as iron ore miners continue to feel the pinch of reduced commodity prices.

Iron ore prices have dropped to a 10-month low as China made further calls to slow steel production, causing major and minor iron ore miners alike to feel the effects in Australia. 

Thermal and coking coal production have helped the overall balance of goods and services to record levels in July, according to Australian Bureau of Statistics (ABS) trade data.

Oxford University professor of globalisation and development Ian Goldin has warned the Australian mining sector that tensions with China could escalate into a ‘cold war’ with further impacts on supply chains.

Iron ore prices reached $US208.67 ($268.72) per tonne on Tuesday after reports flagged a potential easing of production cuts at Chinese steel mills.

New Hope Group has flagged that the monthly average thermal coal price at its New South Wales operations have increased by 78 per cent since September 2020.

In the wake of record-high copper, iron ore and steel prices, Chinese Premier Li Keqiang has made clear the country’s need to control the commodities to ensure China’s economic stability.  

Western Australia’s Pilbara Ports Authority has maintained strong iron ore shipments from Port Hedland during April as prices have surged.

Venture Minerals has started commissioning for its wet screening plant at the Riley iron ore mine in Tasmania.