Last week it was Rio Tinto which reported that its WA iron ore business did record numbers in the September quarter.
Tomorrow it’s BHP Billiton’s turn to tell the market how its iron ore and other businesses went in the three months to September 30.
Yesterday the third iron ore group in WA, Fortescue Metals Group told the market it lifted third quarter iron ore shipments by 20.6%.
And yet, any number of analysts and brokers were telling us a month ago that iron ore exporters were finding it tough in the third quarter.
Last Thursday China, the world’s biggest buyer, revealed it had imported just over 60 million tonnes of iron ore in September, the second highest on record.
Now analysts are saying iron ore will soften this quarter, with Fortescue yesterday adding its voice.
But it says it will be shipping between 13.5 million and 14 million tonnes in the December quarter to sustain its current 55 million tonne a year target rate.
The company shipped 12.36 million tonnes of iron ore in the three months to September, compared with 10.09 million tonnes in the same period a year earlier and 5.4% more than in the three months to June.
Fortescue shares added 4% to $5.10, the highest close since September 22.
The company said the average sale price in the September quarter was $US160 per dry tonne, a little higher than the preceding quarter.
But it believes that the recent price declines in iron ore price indices would mean lower prices in coming months.
CEO Mr Nev Power said ”softening” steel prices and tightening monetary policy in China had helped to bring iron ore prices down, and would continue to do so.
"Fortescue continues to experience strong demand for its products and while still at high levels, the recent price falls in the Platts index will flow through to lower average sales prices in the early part of this current quarter at least," the company said in the quarterly report.
Fortescue said it had $US2.1 billion ($A2.04 billion) of cash at the end of September.
Committed contracts for expansion works increased to $US4.3 billion.
Operating costs declined to $US49.78 per tonne in the September quarter from $US53.23 per tonne in the June quarter.
"The Christmas Creek Phase 2 Expansion is on schedule targeting first production of ore from the expanded plant in September 2012," Fortescue said yesterday.
"The budget has been revised down by US$200 million to US$1.1b following a scope change with the budget transferred to the Solomon project.
"The scope change reflects the ore processing facility award to Mineral Resources Ltd announced during the quarter, which has effectively reduced the cash requirement for Fortescue in the construction of the plant."
