FMG 4.48% $24.11 fortescue metals group ltd

News: FMG UPDATE 1-Australia's Fortescue posts record iron ore shipments, beats full-year forecast

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    (Adds 2021 forecast, industry background)

    July 30 (Reuters) - Fortescue Metals Group (FMG) on Thursday beat its full-year iron ore estimates on the back of record shipments in the fourth quarter as demand picked up in China.

    Resurgent demand for iron ore from the world's biggest importer of the raw material has helped support prices that have far outperformed other commodities, even as much of the rest of the world is still gripped by the coronavirus pandemic.

    Fortescue, the world's fourth-largest iron ore miner, shipped 47.3 million tonnes (Mt) of the steel-making material in the June quarter, up from the 46.6 million tonnes a year ago.

    It also comfortably beat the average estimate of 46.1 Mt from three brokerages.

    The company reported shipments of 178.2 Mt for the year, above the miner's own upgraded forecast of 175-177 Mt.

    Fortescue received $80.64 dry metric tonne (dmt) over the quarter, or about 86% of the average Platts 62% CFR Index price, slightly short of a UBS estimate for 90% or of $84.20 per dmt.

    Over the last fortnight, Rio Tinto (RIO) and BHP (BHP) both reported higher iron ore output thanks to strong conditions in China, whose economy returned to growth in the second quarter, However, BHP did warn that fresh outbreaks could threaten the revival.

    Fortescue's costs did rise, though, to $13.02 per wet metric tonne in the quarter, nearly 2% higher than a year ago due to COVID-19.

    The miner forecast shipments of 175-180 Mt for the year ahead, betting that the flood of liquidity from Beijing to support the world's second-largest economy will accelerate demand.

    GRAPHIC: Fortescue outperforms fellow miners 

    Fortescue Quarterly Shipments

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