News: FMG Fortescue Metals Group says qtrly shipments of iron ore was 44.7 mln tonnes, page-24

I think FMG was hoping it would not be noticed or considered an outlier. In the QR they were trying to focus our attention on the annual result which is not too bad. The key is whether it is an outlier or not The recent Chinese activity in closing poor quality steel mills has reduced steel making capacity and increased steel prices. You would expect this activity to reduce overall IO demand. However what appears to have happened is that the demand for high grade IO has increased because it reduces steel manufacturing costs while demand for low grade IO has diminished. The impact has been higher prices for high grade ore and a widening of the discount on low grade ore leading to lower prices. It is possible that this is a permanent shift in the grade dynamics within the IO market and FMG is the visible proof of that movement. If it is it may not be an outlier after all. Nevertheless it is only a theory and it will probably be consigned to the bin come the September QR.DYOR