Fortescue Metals Group - world's 4th largest iron ore producer, depicted fall in quarterly shipments in Q1 CY19 at 38.3 MnT, down 10% as against last quarter at 42.5 MnT.
The shipment dropped amidst tropical cyclone Veronica which hit the western Pilbara region in Australia towards Mar’19 end. The cyclone affected about 2.5 MnT of shipment loss due to five day closure at port Hedland. However, shipment of west Pilbara fines increased for the quarter to 10% (3.8 MnT) of total shipment for the quarter.
On yearly basis, the shipment fell marginally as against 38.7 MnT in Q1 CY18.
FMG iron ore production dropped in Q1 CY19
FMG recorded mined ore production at 48 MnT in Q1 CY19, down as against 49.2 MnT in Q4 CY18. On yearly basis, the production volume increased 15% as against 41.6 MnT in Q1 CY18.
Shipments to Non-Chinese markets dropped for the quarter
Non-China markets accounted for 7% of total shipments during the quarter, with reduced shipments to India given strong demand and higher price realisations from the Chinese market.
Average price in Q1 CY19 increased 47% Q-o-Q
The Average price realization for the quarter ending Mar’19 witnessed at USD 71/DMT, up 47% Q-o-Q against USD 48/DMT in Q4CY18.
* FY'19 guidance: FMG FY'19 (July’18-June’19) shipment guidance revised to 165-170 MnT as against previously laid at 165-173 MnT. The guidance has been affected amidst closure at port Hedland and subsequent flooding at railway line in vicinity of the port.
*Eliwana mine and rail project: The project is progressing on schedule and ore is expected to be delivered in Dec 2020. The project is expected to support West Pilbara Fines production of 40 MnT p.a.
*Approval at Iron Bridge Magnetite Project: The miner received approval for development of stage 2 of the project on 2nd April. The project is expected to increase the average grade of majority of products to more than Fe 60%.
*Autonomous Haulage (AHS): FMG focuses on driverless trucks to cut costs. The project is under progress with 55 trucks converted at Christmas Creek, bringing the total autonomous fleet to 112.