Commodity Management BlogInnovative Ideas and Thought Leadership for Volatile Commodity Marketplace
In less than a decade the price of iron ore has risen tenfold, with China’s economic boom leading the increase in global demand. However, last week iron ore prices hit their lowest level since November 2009; the commodity crashed 4.6%, closing at $94 from a 2012 peak of $149.
With several recent reports of profit slumps, the world’s largest mining companies are starting to struggle in this environment. According to Platts, most market participants remain bearish in their expectations for the iron ore market, with predictions that prices might extend their losing streak until next week and beyond.
Organisations that want to successfully weather this storm will need to transform their supply chains to ensure maximum efficiency throughout their operations. Only by reducing risk to penalties, demurrage and transportation costs and stockpiling where necessary will companies survive. This level of supply chain management can only be achieved successfully with sophisticated mining software solutions like QMASTOR Pit to Port.