Metal Prices, page-10

  

Low grade I/O coming into vogue again it’s an adjustment to  market demand in the long term which Co have to adjust to.

FMG increased it’s %Fe from 58 to 60.1%Fe .  (FMS can do that I hear yousay)

It exported 8-10mt of the new blend and it’s share price went up by more than $1 .

 

FMG,Rio,Roy Hill ,Min the majors adjust to market demand   and do well in $ terms.

The article refers to FMG, historically  being a 58% Fe co. it is now a  Co with a market Cap of  $17,396 Billion. Mention it to N W and he’ll take it on board.

FMS has had it’s I/O described as 58%Fe.

All SH know FMS has a great I/O deposit and offcourse the Vanadium and Titanium.

GLTA

 

https://www.smh.com.au/business/companies/china-steel-mills-back-fortescue-s-new-iron-ore-blend-20190131-p50uuf.html

 

Chinasteel mills back Fortescue's new iron ore blend

 SHAPE  \* MERGEFORMAT By Darren Gray

31 January 2019 — 5:58pm

 

Fortescue Metals Group has enjoyed a demand surge as Chinesesteel mills embrace its new, higher iron content mix with customers signing newdeals after trialling the product.

The higher iron content ore is a key plank of the mininggiant's strategy, with product attracting higher prices than lower iron grades.

Fortescue Metals Group chairman Andrew "Twiggy"Forrest.Credit:Bohdan Warchomij

"Our West Pilbara Fines introduction has gone verysmoothly, there's been widespread support for the product and we have healthysales orders," Fortescue director of operations Greg Lilleyman saidfollowing a visit to Chinese mill operators in January.

Mr Lilleyman was speaking on the release of Fortescue'sDecember Quarterly report, which revealed that Fortescue had increased itsestimate for shipments of the new product to between 8-10 million tonnes infiscal 2019, up from earlier estimates of 5-10 million tonnes.

Over the preceding 12-18 months Fortescue had encountereddeep discounts on its lower iron content, relative to a widely acceptedindustry benchmark for ores with a 62 per cent iron content.

Historically, much of Fortescue's ores have had an ironcontent of about 58.5 per cent. The first cargo of its new product,shipped to China in December, had an iron grade of 60.1 per cent.

"We knew that there was demand and we're seeing thatdemand come through," said Fortescue chief executive officer ElizabethGaines.

The performance saw Fortescue's share price life 4.24 percent to $5.65. The miner's stock has risen from $4.69 a week ago.

In the long term production of Fortescue's West PilbaraFines product will be underpinned by its new $US1.28, which was confirmed bythe miner last year.

Mr Lilleyman said changes in the Chinese steel market wereworking in Fortescue's favour.

"Without exception they (steel makers) all talked aboutdeclining steel profitability, particularly as it (was) pronounced late lastyear," he said.

"And therefore they have a greater focus on input costsover productivity. As a result, there's much greater interest and demand forour lower iron products. Which is translating into a narrowing of the pricespread between higher and lower iron products."

Mr Lilleyman attributed the rise in realised prices in thequarter to a combination of the narrowing in the price spread between higherand lower iron content ores, and the impact of two other iron ore productsincluding Fortescue's new West Pilbara Fines ore.

Ms Gaines said the miner had recorded a strong Decemberquarter, where it had decreased its cost of production to $US13.02 per wetmetric tonne, and had lifted shipments by six per cent to 42.5 million tonnes.Fortescue's average realised price for the quarter rose seven per cent to $US48per dry metric tonne.

Ms Gaines said Fortescue was on a "very strong"financial footing, and its balance sheet had been comprehensively restructured.