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Iron ore rises on BHP Port Hedland strike risk
Iron ore futures climbed 1.6% for the week, with BHP unions planning an eight hour stoppage on July 16 that could disrupt exports from Port Hedland.
Iron ore prices are set for their biggest weekly gain since early May after a looming strike threat at BHP’s Port Hedland export terminal increased supply concerns, despite weak Chinese steel demand, Mining.com reports. The steelmaking ingredient gained 1.6% this week, while Singapore Exchange futures rose 0.6% to $99.35 per tonne by 10:54 a.m. local time on Friday after clearing the $99 level. The move follows three weekly losses in four weeks during June, when seasonal demand softened, steel mill margins narrowed, seaborne supply increased, and Chinese port inventories stayed elevated.
Unions representing workers at BHP’s Western Australia terminal plan an eight hour work stoppage on July 16, a potential disruption to exports from the world’s largest iron ore shipping hub. Traders are also tracking China’s unresolved dispute with Fortescue, where restrictions on the company’s Super Special Fines product remain in place.
In addition, China Mineral Resources Group has asked several steel mills and traders to avoid buying new US dollar denominated cargoes. Market participants are watching whether any Australia disruptions can keep prices supported while steel market conditions remain weak.