Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
Iron ore prices were mixed on Friday despite worries about a dim demand outlook in China.
Benchmark 62% Fe fines imported into Northern China rose 0.10%, to $102.58 per tonne.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended daytime trading 2% lower at 697 yuan ($100.84) a tonne, off a session low of 685.50 yuan, its weakest since May 5.
Dalian iron ore’s benchmark price, however, was on track for a modest weekly gain after clawing back some lost ground.
Data on Thursday showed new Chinese bank loans tumbled far more sharply than expected in April, among a slew of downbeat indicators spurring concerns that the economy’s recovery is losing steam and putting pressure on policymakers to roll out additional supportive measures.
Many Chinese steel mills have reportedly lowered their prices amid disappointment over steel demand during the country’s peak spring construction season.
“With the peak construction season coming to an end and with the expected demand recovery not meeting expectations, there is little upside for steel output and iron ore demand recovery in the short to medium term,” said ING commodities strategist Ewa Manthey.
(With files from Reuters)
