Vale reaffirms Iron ore & Pellet production guidance for FY’18
Vale iron ore and pellet production guidance for 2018 remains unchanged at around 390 MnT and 55 MnT respectively.
Vale, the world’s largest iron ore producer, observed 12% decline in quarterly production at 81.95 MnT in Q1 CY’18 as against Q4 CY’17 at 93.36 MnT. The decline in production is attributed to reduction in low grade ore production besides intense rainy season. On yearly basis, the production recorded marginal decline compared to 86.2 MnT in Q1 CY’17.
Vale’s pellet production witnessed at 12.78 MnT in Q1 CY’18, up against 12.42 MnT in Q1 CY17 mainly due to the restart of Tubarão II pellet plant.
The company is focusing towards high grade ore production, re-enforcing it as premium producer resulting in better margins over volume.
The company’s iron ore & pellet sales in first quarter CY’18 witnessed at 84.3 MnT, highest Q1 sales since inception, up 8% as against Q1 CY’17.
Rio Tinto: Pilbara Iron Ore Shipments Up 11% Q-o-Q in Q1 CY’18
World’s second largest iron ore miner- Rio Tinto recorded decline in Q1 CY’18 shipments. Rio Tinto’s Pilbara iron ore shipments witnessed at 80.3 MnT, down 11% on quarterly basis as against Q4 CY’17 at 90 MnT. It has witnessed a rise of 5% in shipments as against Q1 CY’17 at 76.7 MnT, owing to the implementation of productivity projects, fewer weather disruptions and ramp up of Silvergrass iron ore mine.
The company’s Pilbara iron ore production for the first quarter CY’18 marked slight decline on quarterly basis at 83.12 MnT, compared to Q4 CY’17, at 87.87 MnT. While, recorded an increase of 8% against first quarter CY’17 at 77.17 MnT.
Rio Tinto’s Pilbara shipments are expected to be between 330 to 340 MnT in 2018, in line with laid guidance. This is subject to market conditions and any weather constraints.
The share of iron pellets & concentrates production for CY’18 has been revised to 10.3 MnT to 11.3 MnT against the previously laid guidance of production between 11.5 MnT to 12.5 MnT.
BHP Billiton Slashes Iron Ore Production Guidance by 2%
BHP Billiton, the third largest iron ore producer: The total iron ore production on 100% basis from Pilbara, Australia for Q1 CY’18 witnessed at 67 MnT, down 6% as compared to 71.6 MnT in Q4 CY’17. This decline is attributed to cyclone in Jan’18 and unplanned car dumper maintenance.
The company’s total iron ore sales on 100% basis recorded at 67.8 MnT for Q1 CY’18, down 4% Q-o-Q as against 70.7 MnT in Q4 CY’17. The sales for Q1 CY’18 witnessed an increase of 8% on yearly basis.
BHP received approval for increase in Port Hedland capacity to 290 MnT iron ore p.a, which is expected to be achieved by end of FY’19.
It has reduced its production guidance to 272-274 MnT on a 100% basis against previous forecast of 275-280 MnT due to car dumper reliability issues.
FMG: Iron Ore Production guidance down 12% Q-o-Q
Fortescue Metals Group – world’s 4th largest iron ore producer, recorded 12% decline in iron ore production for the quarter ended Mar’18 at 41.6 MnT, as against 47.5 MnT in Q4 FY’17. The results stood down on quarterly basis owing to cyclone effecting port operations, maintenance, equipment downtime and wet weather at mines. Also, Chinese Steel demand remained subdued post New Year holidays, due to governmental regulations leading to decline in shipments for the quarter.
The miner shipment recorded at 38.7 MnT in Q1 CY’18, down 4% against 40.5 MnT in Q4 CY17. On Y-o-Y basis, shipments stood almost in line with shipments in Q1 CY’18 at 39.6 MnT.
The FY’18 shipment guidance witnessed in line with prior laid guidance of 170 MnT. However, the Q3 FY’18 results recorded lowest since June 2014, exhibiting decline in export targets.
The company has changed its iron ore price guidance to 65% of benchmark Platts 62 CFR index for the second half of FY’18. The FY’18 first half price realization stood at 68% of plats 62 CFR index.
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