Iron ore price weakens as Australia flags return to sub-$100 prices
Futures dropped for a fourth day in Singapore, to trade about 3% lower for the week.
Rio Tinto (ASX: RIO) said on Wednesday it had reopened a rail line near the port of Dampier in Western Australia after an autonomous train carrying iron ore derailed over the weekend.
“Recovery and clean-up work at the site is progressing at a safe distance from the rail line and nearby power and water infrastructure,” the company said.
The world’s second largest miner said an investigation into the cause of the derailment is ongoing.
Analysts said the derailment, which took place on Saturday evening at 6.30 p.m. about 20 km (12 miles) from Dampier in the Pilbara, had the potential to disrupt Rio Tinto’s exports, but not for long.
“While it twill potentially affect iron ore transport to port in the coming weeks, we see the company covering its shipments from port stockpiles and thus having less impact on the broader iron ore market,” BMO commodities analyst Colin Hamilton wrote.
This is the second time an autonomous train has failed. In 2018, BHP (ASX: BHP) suspended rail operations in the north of Western Australia after it deliberately derailed a runaway train loaded with iron ore headed for Port Hedland.
Rio Tinto ships iron ore from Dampier port and through Cape Lambert in the northern part of Western Australia.
The company operates about 14,000 ore cars across its Pilbara rail network, each of which can hold an estimated 118 tonnes of iron ore.
