BHP Forecasts Iron Ore to Rebound After Annual Output Declines
- Australia production seen rising as much as 6% in fiscal 2020
- Producer sees $1 billion hit on outages, productivity losses
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BHP Group forecasts iron ore production will rise as much as 6% this fiscal year after output slumped to a first annual decline because of a train derailment and a cyclone that deluged Australian ports.
Total production from Australia is estimated to jump to between 273 million and 286 million tons in fiscal 2020 after recording its first annual decline since China’s steel boom began at the start of the century. Annual output fell to 269.6 million tons in fiscal 2019, missing an average forecast of 272 million tons among five analysts surveyed by Bloomberg.