The spot price of iron ore continues to inch towards the US$120 per tonne mark, helping push up the prices of our biggest iron miners over the last week. Supply constraints are still evidently being felt in the iron and steel markets following the collapse of the Vale dam in Brazil earlier this year.
The iron ore spot price opened Tuesday morning at US$118.47 per tonne (this time last week, the price was US$116.98). These prices continue to push 5-year highs and show no signs of slowing, in the short-term at least.
Lets take a look at how the big ASX iron miners are faring with these new highs.
BHP Group Ltd (ASX: BHP)
For the third week in a row, I am reporting that BHP has hit a new 52-week high, which occurred yesterday afternoon. BHP shares were trading for $42.13 just after lunch yesterday, which puts BHP at its highest levels since June 2011. The shares pulled back slightly and ended the day trading at $42.04. This caps off an impressive year for BHP, with its shares having appreciated about 25% in 2019 so far.
Rio Tinto Ltd (ASX: RIO)
Rio shares also end yesterday's trading a touch off the 52-week high at $106.45. Rio has done markedly better than BHP over 2019 so far, with shares gaining close to 39% YTD. This probably reflects Rio's higher exposure to iron than BHP.
Fortescue Metals Group Ltd (ASX: FMG)
Fortescue is probably the 'purest' big iron miner on the ASX and so the largest beneficiary of big rises in the iron ore price. This is reflected in the share price gains that Fortescue has enjoyed so far this year and in the new 52-week high that Fortescue shares made yesterday. FMG shares opened Tuesday trading at $9.30 and shot up to a new high of $9.38, before pulling back to close at $9.18 yesterday afternoon. On the 52-week high price, Fortescue shares are now up an incredible 126% for the year, which has probably made Fortescue CEO Andrew 'Twiggy' Forrest a very happy man.
Foolish takeaway
Yesterday's interest rate decision has also dampened our Aussie dollar, which will further assist the iron miners' share prices going forward. If the iron ore price continues to climb toward the US$120 mark, I suspect we will continue to see fresh new all-time highs this time next week.
