The corporate maintained its full-year steerage of 315 million to 335 million tonnes and mentioned it achieved an annual output capability of 330 million tonnes.
“Full-year iron ore manufacturing steerage of 315-335 million tonnes is maintained, however hitting even the underside finish of this vary would require a powerful second half of the yr,” Christopher LaFemina, an analyst at Jefferies informed the Financial Times.
“Doable, however threat is to the draw back.”
BHP mentioned it will begin a “main upkeep” marketing campaign over the subsequent three months at Port Hedland, its key iron ore loading facility in Western Australia.
Decrease than anticipated provide development has helped prop up costs, which at greater than $220 a tonne on Tuesday are delivering big earnings for iron ore producers.
Rio Tinto mentioned final week that its shipments fell 2% on the previous quarter and flagged annual exports may are available on the low finish of its forecast, partly due to heavier than regular rain.
Bull market
Iron ore has been in a bull marketplace for greater than two years, and it isn’t about to finish quickly, say Goldman Sachs analysts.
“It could be unsuitable to say that the bull marketplace for iron ore, , is on the cusp of ending,” mentioned Nicholas Snowdon, Goldman’s head of base metals and bulks analysis, as CNBC reported.
In line with Snowdon, the market will doubtless solely return to a “snug place” from 2023 on.
Costs are being supported by strong demand from high metal producer China.
“At the same time as China reveals some indicators of decelerating in … metal demand development price within the second half of the yr and into 2022, the remainder of the world and (developed market) metal demand dynamics are extremely robust,” Snowdon was quoted on the Singapore Iron Ore Discussion board.
“For now, it appears like a really tight market with a really robust underpin from provide demand, and nonetheless sturdy demand development charges.”
“The Australian producers have nearly maxed out their infrastructure availability, to allow them to’t develop at any tempo,” mentioned Rohan Kendall throughout a separate panel dialogue.
“I believe costs over $200 a tonne are unsustainable, however we’re prone to see costs keep round $150 a tonne,” predicted Erik Hedborg, principal analyst at CRU.
(With information from Reuters and Bloomberg)
