Hey Guys
Looks like supplies of iron ore may be hit due to the monsoonal rains that have hit the region over the last few days.
No announcements have been made by BHP or RIO, but if their supplies are affected for more than 2-3 weeks we will begin to see a lift in spot iron ore prices!
As the article states, 1/3 of all world seaborne iron ore originates from this area!
Since current world demand for iron ore is sitting at approximately 90-93% of world supply volumes, a supply restiction like this could squeeze steel mills and raise prices!
Keep an eye out for any news on this! COuld be a bonus for SDL and the like who would benefit from higher iron ore prices!
http://www.theaustralian.com.au/business/mining-energy/parts-of-pilbara-region-declared-disaster-zone-after-flooding/story-e6frg9df-1225974314519
parts of pilbara - disaster zone from flooding
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