The global iron ore price has continued to perform strongly during the last several weeks, despite the weakness in Chinese finished steel prices. Last week the international benchmark for the market, the cfr China 62% Fe price, surpassed $76/tonne cfr Qingdao according to Kallanish, reaching the highest level since beginning of March this year.

The price stands at just $2/t below the peak registered this year at the end of February, indicating that the market remains very strong despite the recent downturn in Chinese finished steel prices.

According to sources, the iron ore market is still being in part supported by the derailment of a BHP train in the Pilbara on Monday last week. The miner had initially said it was drawing on port stocks in order to maintain shipments and port operations. Now, however, it says port stocks may not be sufficient to make all of its shipments this week. The company says it is liaising with customers over its contractual commitments over the period.

The wreckage of the derailment is now expected to be removed “... over the next few days,” says BHP, by a workforce of 130 that has been sent to restore the line. About 1.5km of track has been damaged on a key piece of rail infrastructure linking BHP’s mines to Port Hedland. The company says that its mines are operating at normal rates.