China-Australia relations: Australian iron ore giant Fortescue ‘well-placed’ to meet China’s strong demand

Fortescue Metals Group reported a 4.7 per cent jump in iron ore shipments during the October to December quarter

The average price it received for its iron ore during the quarter rose a 60.5 per cent to US$122 per dry metric tonne, realising 91 per cent of the 62 per cent Platts benchmark average

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Last week, Australia’s Fortescue Metals Group forecast half-year net profit after tax of between US$4 billion and US$4.1 billion, a solid jump from the US$2.45 billion recorded a year earlier. Photo: Shutterstock

Published: 10:46am, 28 Jan 2021Updated: 10:50am, 28 Jan 2021

Fortescue Metals Group on Thursday reported a 4.7 per cent jump in iron ore shipments, in line with forecasts, as global miners benefit from soaring demand in top steel producer China.

The average price the company received for its iron ore during the October to December quarter rose a whopping 60.5 per cent to US$122 per dry metric tonne, realising 91 per cent of the 62 per cent Platts benchmark average.

Fortescue’s quarterly shipments were flat on an annual basis at 46.4 million tonnes, but in line with estimates from UBS.

The Perth-based miner maintained its full-year shipment target of 175 to 180 million tonnes, and said it was “well-placed” to meet the strong demand.

Record shipments of 90.7 million tonnes surpassed any half year since Fortescue’s inception, and we are very well placed to meet the sustained strength in demand from our customers

Elizabeth Gaines

“Record shipments of 90.7 million tonnes surpassed any half year since Fortescue’s inception, and we are very well placed to meet the sustained strength in demand from our customers,” said Fortescue CEO Elizabeth Gaines.

“Across the business, our entire team is achieving excellent operational performance while continuing to manage challenges associated with Covid-19, including border restrictions.