Good news for mining jobs as prices of iron ore are defying last year`s terrifying plummet of prices which fell to a Sept low of US$86.70 (AUD$94.10) per tonne!
So far, there has been nothing but good news for Australian iron ore miners and for those seeking mining jobs in Australia, especially working in iron ore mining.
It seems there is no sign of sinking iron ore prices nor any inkling of weakness as expected. In fact, right up until last week, the iron ore price has been inching higher towards a very comfortable $US133.10 per tonne!
When you see the price fluctuations in the graph from the SMH article today, in comparing last years prices to this years – you can see there is good news at this time for iron ore and that’s all that matters to job hunters looking for Australian mining jobs.
Fortescues CEO Nev Power pointed out recently at the Diggers n’ Dealers conference in Kalgoorlie that Australia won`t see the replica of last year`s drop as the supply and demand environment right now, is completely different – which should give miners and the outlook for mining jobs in Australia, a strong surge of confidence.
If you analyse the data closely it fuels confidence in Australian mining jobs and the future demand for steel. Power pointed out that last year`s iron ore inventory in China saw high stocks in the steel mills and ports, which led to a decline in demand. In contrast, this year, data shows China inventories have been quite low for months now, which implies that buying will be ongoing for a long while to feed the steel mills demand – and iron ore has achieved a market equilibrium as such.
JP Morgan also recently published a comprehensive report bullishly dismissing the probability of a repeat of last year’s price crash, this year.
The historic data, elevated steel production during July and the importing of iron ore remaining consistently high, (posting a fresh all-time monthly record) provide strong indicators towards the successful future of mining jobs in Australia.
The simple fact is large mining giants like Fortescue, BHP Billiton and Rio Tinto`s have improved, refined and matured processes to make iron ore more plentiful and accessible to Asian markets. As such, we are seeing an ongoing efficiency of production, export and transport infrastructure and this efficiency means working around the clock, more jobs to fulfill shifts and increase productivity – which so far has meant good news for miners and mining jobs in Australia.
Most of the year has seen low inventories, meaning Asian markets here is less anxiety over short-term supply which has reduced the need of iron ore hoarding, due to the more plentiful supply of iron ore and the ease of accessibility. This has also helped to ease price volatility, dramatic inventory swings and as such, fluctuations created by urgency to restock in short timeframes or sudden collapses due to an oversupply.
It is expected that iron ore prices will remain consistent at US$125 per tonne (which means consistency for mining jobs in Australia), for the rest of the year and into the future. If a drop occurs in price due to seasonal demand, it is more likely to be steady downward trend rather than a abrupt drop.
Reference: Iron ore price steady at $130 tonne | Australian mining jobs | Fortescue Metals upbeat on future demand and relatively high prices