Australia’s largest iron ore export hub, Port Hedland, was closed on January 18, 2025, as authorities took precautionary measures ahead of an approaching tropical cyclone. The closure is expected to disrupt the flow of iron ore from the Pilbara region of Western Australia, a major global supplier of the metal used in steel production.

The Pilbara Ports Authority, which operates the port, ordered all bulk carriers to leave the facility by 6 p.m. local time as a tropical low, currently off the coast, is expected to intensify into a cyclone. The port’s standard operating procedures stipulate that only essential personnel will remain on-site during adverse weather conditions, further halting operations at the critical export hub.

Port Hedland, which handles iron ore exports from some of the world’s largest mining companies—including BHP Group, Rio Tinto, and Fortescue Metals—plays a pivotal role in the global supply of iron ore. The port typically sees the export of millions of tons of iron ore each month, making its closure a significant disruption to the global iron ore market.

The Australian Bureau of Meteorology (BOM) issued a cyclone warning on January 18, forecasting that the tropical low could develop into a full-fledged cyclone by the following day. The cyclone is predicted to affect both Port Hedland and the Dampier region, home to another key iron ore export port in the Pilbara. In addition, the nearby town of Karratha, which hosts a major liquefied natural gas (LNG) plant operated by Woodside Energy, has also been placed under a cyclone warning.

This weather event follows a period of volatile weather patterns in the region, which has already brought heavy rain and potential flooding. The tropical cyclone threat further exacerbates concerns about the region’s ability to maintain steady iron ore exports in the face of seasonal weather challenges.

The timing of the port closure comes amid ongoing fluctuations in the iron ore market. In December 2024, Port Hedland saw a slight decline in iron ore exports, dropping to 47.614 million tons from 48.755 million tons in November. The disruption caused by the cyclone could lead to further delays in shipments, potentially tightening the supply of iron ore in the global market and impacting prices.

The closure of Port Hedland and the anticipated disruption to iron ore exports could have ripple effects throughout the mining and steel industries, particularly in China, the world’s largest importer of iron ore.