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The system is expected to intensify over the weekend and approach the iron ore-rich Pilbara coastal region on Monday December 30.
The Australian Bureau of Meteorology forecast the tropical low could develop into a category 3 cyclone, with a level of destruction that can cause roof and structural damage, destroy caravans as well as possible power failures.
However, market participants said they expected limited impact on shipments from Port Hedland, one of the world’s largest iron ore ports.
“Operation at the ports may be affected to some extent, but the possible cyclone will not likely be that destructive this time based on the forecast,” an iron ore trader in Shanghai said.
Western Australia’s cyclone season runs from December to March.