Fortescue Metals Group Ltd., the world’s fourth-largest iron ore exporter, said fourth-quarter shipments rose 10 percent to beat analysts’ estimates.
Total shipments, including tons for third parties, were 42.4 million metric tons in the three months ended June 30, from 38.7 million tons a year earlier, the Perth-based company said Thursday in a statement. That beat the median estimate of 41.4 million tons among three analysts surveyed by Bloomberg.
Full-year shipments rose 33 percent to 165.4 million tons and were at the higher end of the company’s earlier forecast of between 160 million and 165 million tons. The company has completed its expansions and aims to maintain future shipments at about 165 million tons a year.
Rising supply of seaborne iron ore threatens to overwhelm weak demand from Chinese steel mills as the largest producers, including Fortescue and Vale SA, continue expansion programs, according to Goldman Sachs Group Inc. Iron ore this month sank to the lowest since at least 2009 as a global glut swells.
Fortescue’s share of shipments in the three months through June 30 was 41.3 million tons, from 37.6 million tons a year earlier, it said in the statement. That beat a median estimate of 39.5. million tons among five analysts surveyed by Bloomberg.
The stock rose 1.1 percent to A$1.77 at 10:09 a.m. in Sydney, trimming its decline this year to 35 percent.
Ore of 62 percent delivered to Qingdao fell to $44.59 a dry ton on July 8, the lowest since at least May 2009, and was at $51.76 a ton on Wednesday, according to Metal Bulletin Ltd. Compared with the annual benchmarks that preceded recent spot trading, the July 8 price would be the lowest since 2005, data compiled by Clarkson Plc show.