Seaborne iron ore prices continued to surge on Tuesday, reaching the highest point since 8 February. BHP added its own figures to the supply tightening, saying it was reviewing its guidance in light of Cyclone Veronica.

The Kallanish KORE 62% Fe index jumped $1.97/tonne to $90.61/dry metric ton cfr Qingdao. On the Dalian Commodity Exchange May iron ore settled at CNY 655.5/t ($97.66/t), up another CNY 17/t and the highest level since early 2017. On the Singapore Exchange meanwhile May 62% Fe futures settled up $1.99/t at $87.75/t. In Tangshan, billet prices were flat at CNY 3,450/t.

BHP meanwhile added its damage assessment to the list of factors supporting iron ore prices. It says it is currently reviewing its production guidance for the year to take into account supply disruptions in the first quarter. It says it expects that Cyclone Veronica will impact its production by around 6-8mt on a 100% basis. BHP says it will release new production and cost guidance for the period when this has been prepared.

Australian iron ore shipments meanwhile are expected to have fallen sharply last week because of the cyclone. SMM estimates that shipments fell -54% week-on-week, implying 8.55 million tonnes of delayed shipments combined.