Iron ore miners suffer from export growth

Iron ore exports from Port Hedland increased by about 30 percent in the second half of 2014, driven mainly by supplies from mines in the Pilbara region. This led to a decline in the global value of the product in the past year.

The port's main exporters, BHP Billiton and Fortescue Metal Group, have significantly expanded their operations and, as a result, about 219 million tonnes of iron ore have been shipped from Port Hedland. Shipments from the port in the second half of 2014 reached 49.3 million tons, which is 29 percent higher than exports in the second half of 2013. The data also shows that in December, exports of iron ore were twice as high as in the same month of 2010-2011. when the price of the item was in full swing.

The increase in iron ore production by large miners has had a serious impact on costs. The price of iron ore in 2010-2011 was $ 160 per tonne and dropped to $ 82 per tonne in the second half of 2014. The decline in prices destroyed the stocks of many producers in the second half of 2014, but there is a good chance for shareholders in 2015 as data emerged that China plans to accelerate the reconstruction of its infrastructure.

Iron ore on the Dalian Stock Exchange rose about 2.8 percent after news broke of the Chinese government's plans to allocate about $ 1 trillion. dollars to support economic growth in the country, and tighten the growth rate to 7 percent. But the statements made in the media have not yet been confirmed in the press by Chinese officials. At the same time, the government of the country made a statement that the country will turn its attention to the further development of infrastructure.