Melbourne (Platts)--24Jan2013/548 am EST/1048 GMT
Australia's Fortescue Metals Group shipped 19.1 million wet mt of iron ore in October-December, up 32% year on year, putting it on track to achieve an export target of 82 million-84 million wmt for fiscal 2012-13 (July-June), the miner said Thursday. The Perth-based miner's December quarter exports were up 22% from the previous July-September quarter. During the month of December, Fortescue reached a production capacity run rate of 100 million mt/year after commissioning a third train unloader at its Port Hedland facility. This is compared with a run rate of 64 million mt/year achieved in December 2011. Fortescue said it achieved an average price of $111/dry mt CFR for its iron ore in the December quarter compared with an average Platts 62% Fe index price of $122/dmt CFR over this period. Iron ore from Fortescue's Christmas Creek and Cloudbreak mines in Western Australia averages 58% Fe. Article continues below...Request a free trial of: Steel Markets DailySteel Markets Daily provides transparent daily and weekly assessments of iron ore, coking coal, coke, ferrous scrap and ferroalloys prices, plus insightful analysis and commentary on the day's market activities.
Australia's Fortescue Metals Group shipped 19.1 million wet mt of iron ore in October-December, up 32% year on year, putting it on track to achieve an export target of 82 million-84 million wmt for fiscal 2012-13 (July-June), the miner said Thursday. The Perth-based miner's December quarter exports were up 22% from the previous July-September quarter. During the month of December, Fortescue reached a production capacity run rate of 100 million mt/year after commissioning a third train unloader at its Port Hedland facility. This is compared with a run rate of 64 million mt/year achieved in December 2011. Fortescue said it achieved an average price of $111/dry mt CFR for its iron ore in the December quarter compared with an average Platts 62% Fe index price of $122/dmt CFR over this period. Iron ore from Fortescue's Christmas Creek and Cloudbreak mines in Western Australia averages 58% Fe.
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Steel Markets Daily provides transparent daily and weekly assessments of iron ore, coking coal, coke, ferrous scrap and ferroalloys prices, plus insightful analysis and commentary on the day's market activities.
Though iron ore prices were currently in the $140-150/dmt CFR range, Fortescue chief executive Nev Power said the miner expected prices to average $120/mt CFR over the rest of this year, with the market experiencing intermittent periods of volatility. Power said demand from the miner's Chinese customers remained strong and noted the incoming leadership in Beijing's plans to boost the economy had "underpinned confidence" among Chinese mills. Fortescue is expanding iron ore production capacity to 115 million mt/year by mid-2013 and to 155 million mt/year by the end of this year. Power did not say how much of the company's planned expansion tonnages had been allocated to customers. "Our primary focus is on expanding supply to existing customers," he said, adding that Chinese mills were still looking for long-term supply agreements.--Paul Bartholomew, paul_bartholomew@platts.com--Edited by Haripriya Banerjee, haripriya_banerjee@platts.com
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