Iron ore exports from Australia’s Port Hedland climbed to an all-time high in June as mining companies in the world’s largest shipper increased low-cost supplies. Prices tumbled the most in a year.

Total shipments jumped 14 percent to 38.4 million tons last month from a year earlier, the Pilbara Ports Authority said on Thursday. That exceeded the previous record of 38 million tons in May, according to port authority data compiled by Bloomberg. Exports to China were 32.6 million tons, also a record.

Surging overseas sales from Australia and from Brazil, which reported that June’s shipments were the highest this year, may help to spur lower prices. Exports from Australia may expand 10 percent next year, more than twice the pace that’s forecast for 2015, the government said on Tuesday, citing additional supplies from Gina Rinehart’s Roy Hill, a new mine, as well as capacity expansions by producers including Rio Tinto Group.

David Fuller's view

Record exports at low prices are made possible by much more efficient technologies and continued demand from China.

Here is the Iron Ore chart which shows a V-bottom of at least medium-term significance.  A break above the MA is required to indicate further gains before some right-hand base extension occurs.

Of the three miners mentioned, Fortescue Metals (quoted in AUD) is the most depressed, with a vulnerable net yield of 6.81%, according to Bloomberg, and an estimated P/E of 17.36.  However, if it can remain independent it should rally the most when Iron Ore extends its recovery meaningfully.  BHP Billiton (quoted in GBP) may be able to hold its yield of 6.24% and has an estimated P/E of 13.71.  The figures for Rio Tinto (LN) are 5.40% and Est P/E 15.97.  The chart patterns currently reflect expectations of a further price war but this would change quickly as / when Iron Ore recovers.