Bloomberg News

Iron-Ore Supply Said by Standard Bank to Fall by 8.2% in October

October 16, 2012

Shipments of iron ore will be curbed by 8.2 percent this month after supplies shrank from from Brazil, India and South Africa, Standard Bank Plc said.

Output losses from a strike ending today at South Africa’s Sishen mine, the country’s largest, are estimated at 1.6 million metric tons, Melinda Moore, London-based bulk-commodity sales executive at the bank, said by e-mail today.

Protesters in Brazil blocked a railroad transporting ore from the Carajas mine of Vale SA, the world’s biggest producer, for four days earlier this month, which equated to a loss of 1 million tons of shipments, Moore said.

Mining bans are further curbing 5 million tons of ore from leaving the Indian state of Goa in October, according to the bank.

“We estimate that 8.2 percent of seaborne supplies have been lost from the market in October due to these various policy-driven and protester incidents,” Moore said in the e- mail.

The price of the steel-making raw material rebounded 30 percent since plunging to a near-three year low on Sept. 5.

Iron-ore swaps for November, used to hedge or speculate on the future price of the steel-making commodity, gained 1.8 percent to $112 per ton, according to Clarkson Securities Ltd., a unit of the world’s largest shipbroker. Fourth-quarter contracts gained 2.5 percent to $112 per ton.

The swaps are settled against the Steel Index Ltd. price for iron ore with a 62 percent content delivered to the Chinese port of Tianjin.

To contact the reporter on this story: Michelle Wiese Bockmann in London at mwiesebockma@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net


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