Iron ore stocks on the ASX have been buoyed by the recent increase in the price of the commodity,which reached its highest level since July.The broader Australian market made small gains across the day as investor sentiment rose on ongoing US budget talks.
Iron ore stocks on the ASX have been buoyed by the recent increase in the price of the commodity,which reached its highest level since July.The broader Australian market made small gains across the day as investor sentiment rose on ongoing US budget talks.
While the All Ords managed a small 0.5%,or 22.5 point,gain to close the day at 4,610.5 points,iron ore stocks continue to rise on ever increasing prices in the commodity.
However,the S&P/ASX 200 also added 0.5%,or 21.8 points,to close at 4,595.2 points.The majority of the sectors closed the day in the black,with the improvement in investor sentiment attributed to continued positive budget talks.
Mr Barack Obama President of US is believed to be considering budget concessions.
Benefiting many ASX listed iron ore plays in recent weeks has been the increase in the price of iron ore,which has climbed 15%in two weeks to the highest level since July.
A good industry benchmark is China's Tianjin port,where the iron ore price moved more than 2%higher to USD 132.20 per tonne on December 17th.
BHP Billiton added USD 0.31,or 0.85%,to finish at USD 36.66,while fellow major Rio Tinto closed USD 1.18,or 1.86%,higher at USD 64.70.
Fortescue Metals Group rallied USD 0.13,or 2.91%,to USD 4.60 after announcing that it has received the AUD 190 million from BC Iron for the sale of its 25%interest in the Nullagine Iron Ore Joint Venture.
The company will retain a 25%interest in the JV and the capacity available to the JV on Fortescue's rail and port infrastructure will be 6 million tonnes per annum.
Atlas Iron rose USD 0.085,or 5.23%,to USD 1.71.The company last week signed three new term offtake contracts with Chinese steel mills covering 2.2 million tonnes of iron ore a year.
Mount Gibson Iron was also a mover today,gaining USD 0.055,or 7.43%,at USD 0.795.
Gindalbie Metals rose modestly,adding USD 0.01,or 4.17%,to close at USD 0.25.
Nevada Iron also witnessed positive movement with a USD 0.015,or 9.09%,rise to USD 0.18.The company recently secured a port deal with the Port of West Sacramento for the storage and loading of 2.4 million tonnes per annum of Buena Vista magnetite concentrate.
Meanwhile,this is sufficient tonnage to cover all of the planned production from the proposed phase one mine development.