- Iron ore shipments to China have been disrupted after yesterday's deadly explosions at Tianjin’s port - the world's 10th largest - caused authorities to restrict vessels calling at the facility.
- Mills in China are the world’s largest buyers of iron ore and the blasts, which have killed at least 44 people, will prompt shippers, traders and users to tap stockpiles and seek alternative routes.
- BHP Billiton (NYSE:BHP) says its iron ore operations at the port have been disrupted but that there was no damage to iron ore discharging berths; BHP does not own or operate any iron ore berths at Tianjin, but the port does receive its shipments along with those of other iron ore miners.
- Fortescue Metals (OTCQX:FSUMF) also says its iron ore operations at the port have been affected, while Rio Tinto (NYSE:RIO) has not provided details of any potential damage.
- Also, Chevron (NYSE:CVX) says it suspended operations at a nearby lubricants facility but that the plant did not sustain immediate visible damage.
- Iron ore futures in China jumped nearly 4% to their highest in more than five weeks.
- Tianjin handled 25M tons of iron ore imports in H1 of this year, or 5.5% of China’s total, and shipped out ~30% of the country’s steel exports in the period.