Australia-based mining and materials company Arrium Limited has announced that in the March quarter this year it produced 3.6 million mt, down 14 percent compared to the previous quarter. The iron ore shipments in the given quarter amounted to 3.06 million mt, falling seven percent quarter on quarter. The March quarter shipment volume is in line with guidance of approximately 5 million mt for the first six months.
According to Arrium, the slowdown in Chinese steel production and concerns regarding increased supply from the major iron ore producers have weighed heavily on the iron ore markets. Average prices again declined in the first quarter, particularly in March, after having stabilized somewhat in February. The sustained decline in pricing has forced producers to rapidly reduce costs with many high-cost producers being displaced from the market.