Home / Sector / Resources Shares / Why is the Hawsons Iron share price rocketing 18% on Monday?

Why is the Hawsons Iron share price rocketing 18% on Monday?

The global steel industry is facing increasing pressures to decarbonise production.

Posted by
Bernd Struben
Bernd Struben earned his economics degree in the US. Following several years writing about the tourism industry in the Caribbean, he moved to The Netherlands to cover the EU's booming commercial real estate markets. He moved to Australia in 2010, where he transitioned to analysing the Aussie equity markets. He employs a combination of macro economics and company specific data to gauge what he believes are tomorrow's best investments. In his free time, you're likely to find Bernd at the beach or dabbling away on a new work of science fiction.
Published
| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The Hawsons Iron share price is rocketing 18% to start the week
  • The company reported on 18 non-binding Letters of Intent for the offtake of up to 58 million tonnes per annum (Mtpa) of its ‘green steel’
  • The miner indicated that there’s plenty of demand to scale up its Hawsons Iron Project

The Hawsons Iron Ltd (ASX: HIO) share price is on a tear on Monday, up 18.28% in morning trade.

The ASX iron ore stock closed on Friday trading for 9.3 cents per share and is currently changing hands for 11 cents per share.

Here's what driving ASX investor interest today.

a miner holds his thumb up as he holds a device in his other hand.

Image source: Getty Images

What are ASX investors considering?

The Hawsons Iron share price is rocketing following a non-price sensitive release announcing non-binding Letters of Intent (LOIs).

The LOIs are for the offtake of up to 58 million tonnes per annum (Mtpa) of high-grade Hawsons Supergrade concentrate. The miner said this reflects increasing pressure on the global steel industry to decarbonise production.

The current list of 18 potential off-takers include 12 steel mill operators and six commodity trading houses.

The Hawsons Iron share price may also be getting a lift from the report on demand from mining companies for offtake discussions once a Bankable Feasibility Study (BFS) is complete.

Commenting on the progress, Hawsons' managing director, Bryan Granzien said:

This level of investment interest in the project and robust offtake demand is clearly a strong demonstration that making the transition to producing zero-emission 'Green Steel' is front and centre on the global steel industry's planning horizon and that Australia is a preferred supplier of high-grade magnetite concentrate.

The miner indicated that there's plenty of demand to scale up its Iron Project.

"The LOIs we now have in hand provide additional confidence that there is more than sufficient market demand to support a modular expansion plan to 20 Mtpa," Granzien said.

Hawsons said it couldn't name the interested parties at this time due to commercial-in-confidence considerations.

Hawsons Iron share price snapshot

The Hawsons Iron share price notched up fresh five years highs in April this year but has since retraced. With today's big intraday boost factored in, the ASX iron ore miner is trading right where it was 12 months ago.

The All Ordinaries Index (ASX: XAO) is also flat over the full year.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Two miners standing together with a smile on their faces.
Resources Shares

These are the best ASX 200 mining shares to buy in March: Morgans

| James Mickleboro

These mining shares are on Morgans' best ideas list in March.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Rio Tinto share price dips despite copper mega-mine milestone

| Bronwyn Allen

Rio Tinto owns 66% of what will soon become the world's fourth-largest copper mine.

Read more »

Miner looking at his notes.
ESG

'Not sure if that's the way we should go': Why BHP shares are making news today

| Bernd Struben

BHP is trialling renewable diesel made from Hydrotreated Vegetable Oil (HVO) at its Western Australian Yandi iron ore mine.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Resources Shares

Are Fortescue shares back on the menu amid job cuts?

| Tristan Harrison

Can cost reductions be the key to driving Fortescue ahead?

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Could buying Fortescue shares at under $22 make me rich?

| Tristan Harrison

The iron ore miner Fortescue has seen volatility. Is it time to buy?

Read more »

Australian Strategic Materials employee wearing a hard hat at a mine looks into the distance as he checks a folder.
Resources Shares

Sayona Mining share price dumps 6% amid lithium lows

| Bronwyn Allen

Lithium prices have fallen to their lowest level in more than a year.

Read more »

Rede arrow on a stock market chart going down.
Resources Shares

Why are ASX 200 lithium shares falling so hard today?

| Bronwyn Allen

The lithium carbonate price has fallen to its lowest level in more than a year.

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Resources Shares

Why is the BHP share price taking a flogging on Friday?

| Mitchell Lawler

The commodity growth engine may not be firing on all cylinders.

Read more »