Australia's third-biggest iron ore producer Fortescue Metals Group Ltd (Fortescue) has announced its operating results for the fourth quarter of 2012.
Fortescue said in its statement that its total iron ore shipments during the December quarter increased by 32 percent year on year to 19.6 million mt. In the given quarter, Fortescue's total processed iron ore volume increased to 17.8 million mt, up by 30 percent compared to the same quarter of the previous year.
According to Fortescue's statement, production costs for the quarter increased to $50.48/mt from $49.44/mt in the previous quarter.
According to Fortescue, volatile market conditions in China will stabilize in the near term. The miner pointed out that steel mills are readjusting their raw material stocks to maintain more sustainable stock levels. With China starting to rejuvenate programs of economic growth and urbanization, steel demand is expected to increase and support iron ore prices.