Australia’s largest export of iron ore is no longer being shipped out of Port Hedland, Cape Lambert and Dampier. All three were shut down on Friday in anticipation of the cyclone.
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Iron ore analyst, Philip Kirchlechner has said depending on how long the ports remain closed, Veronica could cost the economy more than $1billion.
"Based on iron ore exports out of Australia in recent years, which range from roughly $60 billion to US $70 billion a year, if shut down lasts about a week and there's no catching up of lost production later, then the impact would be around $1–1.3 billion."
Kirchlechner also warned that if Cyclone Veronica damages the mining infrastructure we could see further delays on iron ore export which would prove to be even more costly to the Australian economy and in turn the Australian dollar.
The Pilbara ports authority remains uncertain as to how long the port closures will last.
Supply concerns are already boosting the cost of iron ore.
"Traders, speculators, and users of iron ore will be looking for any announcements from the biggest producers like BHP for any information on damage and supply impact, and for how long," said Kirchlechner.
BHP is the primary exporter of iron ore and as of yet they have yet to comment on the port closures other than expressing concern for its employees.
Sterling has made gains against the Australian dollar during the last 24hrs of trading creating an opportunity for sterling sellers looking to move short term.
There is little data of consequence released from down under for the remainder of the week, Cyclone Veronica and Brexit will continue to dictate GBP/AUD.
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