Despite cyclone activity in Port Hedland which caused ports to close on January 20 the iron ore bonanza continues apace.
Some 36.78 million tonnes of iron ore were shipped in January, a 30 percent increase on a year ago and a massive 66 percent uplift in volumes from only two years ago.
The monthly volumes shipped were down slightly on the previous month as the ports had to be closed due to the wild cyclonic conditions.
Well over 30 million tonnes of the iron ore cargo shipped was bound for China.
The lower cost miners BHP Billiton (BHP), Rio Tinto (RIO) and Fortescue Metals Group (FMG) are clearly set on a path to continue pumping the market with supply despite the commodity price sliding to its lowest level in well over half a decade at below US$62/tonne.
Latest production reports from BHP and RIO in particular suggested that there will be no respite for players at the small end of town with both mining behemoths smashing record quarterly production volumes.
This does not bode well for the marginal producers who will struggle to generate free cash flow as prices decline.
The Australian stock market has been on a remarkable run recording no fewer than ten consecutive positive trades, but generally the industrials and financials are likely to perform better than resources companies.