The mining investment boom might be ending but the good news is that as the mines come online the export performance of these assets is progressing well.
In a report to clients yesterday, Justin Smirk from Westpac noted that the Port Hedland Authority had released its latest monthly report on throughput at Port Hedland which showed:
The slightly shorter month of November saw volume fall slightly over the calendar month to 28.1 million tonnes but the daily run-rate ticked slightly higher to keep the 1 million tonne/day mark in sight. We might even see Port Hedland hit the 1Mt/day milestone in December if the top-end weather can hold up. At the current iron ore price this would be the equivalent of approximately AUD$130m of ore being shipped from Port Hedland every day.
That is a lot of iron ore.
But Westpac went further and noted that “Given historical weakness in November, Westpac Economics’ seasonally adjusted data implies that this month is actually a fresh high for exports.”
Good news for Australian growth, which will be reflected in Australia’s third quarter GDP release today.