This Thursday, Fortescue Metals Group Ltd. announced a 32% jump in iron-ore monthly shipments. The increase is a result of improved steel demand from China.
According to company reports, Fortescue shipped 19.6 million metric tons during the second quarter, up from 14.8 million during the previous year. The average price per ton was $111, while last quarter it peaked at $98.
According to a statement to the Australian Securities Exchange, the fourth-largest steel producer expects conditions in China to “stabilize in the near term,” thanks to abrupt changes in the commodity prices and increased demand in the region.
Fortescue explained:
“Still mills are readjusting their raw material stocks to maintain more sustainable stock levels, and with China’s new leadership starting to rejuvenate programs of economic growth and urbanization, steel demand is expected to increase and support iron ore prices.”
Sorry, comments are closed for this post.