Tropical Cyclone Zelia Forces Closure of Iron Ore Ports in Western Australia

Tropical Cyclone Zelia is approaching Western Australia, prompting the closure of all major iron ore ports in the Northwest. The cyclone, categorized as a category five storm, is expected to make landfall near Port Hedland, bringing potentially devastating winds and rainfall. Residents are advised to stock up on essential supplies and seek shelter as the storm’s impact unfolds.

Australia’s iron ore export hub is preparing for the imminent arrival of Tropical Cyclone Zelia, which has been classified as a category five storm by Australia’s weather bureau. This situation has resulted in the closure of all major ports in the northwest of the country, as residents stockpile essential supplies anticipating severe weather conditions.

Cyclone Zelia is currently situated about 80 kilometers north of Port Hedland and is projected to make landfall Friday evening in the Pilbara region. With wind gusts expected to reach 320 kilometers per hour and heavy rainfall spreading over a 550-kilometer area, the potential for significant disruptions is evident.

The world’s largest iron ore export port, Port Hedland, ceased operations on Wednesday, while the ports of Dampier and Varanus Island shut down on Thursday. Additionally, Cape Lambert has also been closed, impacting key players in the iron ore market, including BHP Group, Fortescue, and Rio Tinto.

BHP and Fortescue announced the suspension of operations at Port Hedland for safety reasons, advising their teams to remain sheltered either at home or at their camps. Fortescue has also halted mining operations at Iron Bridge and canceled all non-essential travel to Pilbara sites.

Rio Tinto reported a cessation of activities at its Cape Lambert and Dampier ports, highlighting that there will be no operational vessels or trains until conditions improve. The company acknowledged that forthcoming weather events are likely to affect first-quarter shipment volumes and is actively working to manage the situation.

While the potential disruptions to iron ore supply did not yet sway Dalian iron ore futures, traders remain cautious, influenced by other factors such as U.S. steel tariffs and possible regulations from India. Iron ore is a crucial raw material for steel production.

Residents of Port Hedland, numbering approximately 15,000, have been instructed to shelter indoors, with non-essential personnel relocated to safer environments. Reports indicate that some supermarkets have closed due to depleted supplies, reflecting community concerns as individuals prepare for the cyclone’s impact.

In summary, Tropical Cyclone Zelia poses a significant threat to Australia’s iron ore exports, particularly affecting operations in Port Hedland and other key ports. The precautionary closures by major mining companies underscore the severity of the storm, with residents urged to seek shelter. While the cyclone impacts local operations, it remains to be seen how it will affect broader market dynamics.

Original Source: www.chinadailyhk.com