Australian iron ore miner Fortescue Metals Group has announced that its iron ore shipments in the fourth quarter ending June 30 of the financial year 2013-14 totaled 38.7 million mt, increasing by 55 percent year on year and indicating a rise of 23 percent over the previous quarter. During the full financial year, Fortescue's iron ore shipments remained short of the earlier guidance of 127 million mt.
According to Fortescue, during the June quarter it mined 43.8 million mt of iron ore, 48 percent higher than the previous quarter, largely due to the combination of increased performance in operations through efficiency initiatives as well as the continuity of work achieved through the dry season. Fortescue drew down iron ore stocks by six percent in the June quarter and aims to continue reductions in the September quarter.
Fortescue stated that over the June quarter iron ore prices have traded lower and at a wider spread which has historically been the case in a low price environment. This reflects the significant increase in new seaborne iron ore supply, tighter credit conditions in China and relatively high Chinese port stocks. Fortescue expects supply to rebalance in the short term as port inventories are drawn down, as steel mills restock and as higher cost iron ore production leaves the market.