Cliffs Natural Resources’ US iron ore segment reported lower realized revenues in Q2, at $78.30 per ton compared to $106.80 per ton in the same quarter last year. The company cited the drop in hot band steel prices as the primary reason for the lower per-ton iron ore prices for the quarter.
As for volumes, Cliffs produced 4.2 million tons of iron ore pellets in Q2, reflecting a 2 percent decrease year-over-year due to lower export volumes and weakened US steel demand.
Production cost per ton for the quarter was $56.10, a 9 percent decrease from the $61.40 production cost recorded in Q2 2014. Cliffs cited lower overall employment and energy costs for the savings.