Sydney: Australian miner Fortescue Metals Thursday reported a 10 percent increase in iron ore shipments in the June quarter, even as the World Bank flagged further falls in prices from a supply glut.
Fortescue, one of the world’s big four iron ore exporters, said the year-on-year increase took ore shipments to 42.4 million tonnes.
Exports of the steel-making commodity for the year ending June 30 soared 33 percent to 165.4 million tonnes from the previous corresponding period.
“Fortescue has completed all expansion capacity and has acted to maximise value by maintaining shipments at 165 (million tonnes per annum) which has been the annualised run rate for the last 12 months,” the miner said in a statement to the Australian stock exchange.
Shares in the miner fell 6.17 percent to Aus$1.64 in Thursday afternoon trade.
The World Bank said Tuesday that metals prices were on average projected to be 16 percent lower this year compared with 2014, with iron ore expected to record the biggest fall.
“The largest decline is expected for iron ore (down 43 percent) due to new low-cost mining capacity coming online this year and next (mainly in Australia),” the World Bank said in a statement.
Fortescue is one of the world’s four big iron ore exporters, along with Anglo-Australian firms BHP Billiton and Rio Tinto, and Brazil’s Vale.
The miners have continued to raise production despite a supply glut and softening Chinese demand, which saw the ore price fall to $44.59 this month, its lowest level since 2009.
BHP Wednesday reported a six percent year-on-year rise in ore output for the June quarter, while Rio recorded a nine percent jump.
Fortescue chairman Andrew Forrest has been a vocal critic of BHP and Rio, claiming the companies were deliberately flooding the market, leading to smaller miners — which have higher production costs — battling to survive the challenging conditions.
Forrest also unsuccessfully pushed for an Australian government inquiry into the massive iron ore sector earlier this year.
