Chinese port stocks are rising and Vale is trying to ship more. I follow the ship movements out of Ponta da Madeira. It's just that when the shift workers in those 24/7 operations (like at S11D, or Serra Norte) get sick, it can go through an entire shift. Then you need more workers. Then they need training. Then they may also get sick. So it's a difficult cycle to work through, and a very tricky little virus. Vale- pedalling hard, but it's uphill terrain.

Fortescue hits export record for iron ore, driven by demand from China

Mining giant Fortescue Metals Group's shipments of iron ore from Australia hit an all-time high in the past year and could grow even further next year as the company projects demand from Chinese steel mills to outstrip global supplies.

Fortescue, whose biggest shareholder is billionaire Andrew "Twiggy" Forrest, on Thursday revealed it had shipped a more-than-expected 47.3 million tonnes of iron ore over the past three months, a record quarterly output.

The strong June quarter boosted the company's full-year exports to a record-breaking 178.2 million tonnes, exceeding its previous record of 170.4 million tonnes achieved in 2017.

Fortescue chief executive Elizabeth Gaines said the miner was proud that its elevated sales of iron ore were helping to support Australia's economy as it struggles through the coronavirus crisis.

"This was an outstanding performance which underpinned the operational excellence we delivered in the 2020 financial year, particularly during a quarter when we implemented a range of measures in response to COVID-19," she said.

"I am very proud of the team’s commitment and cooperation during this time which has sustained our contribution to the Western Australian and national economies through the reliable and secure supply of iron ore to our customers."



Fortescue Metals Group chief executive Elizabeth Gaines.CREDIT:PHILIP GOSTELOW

Iron ore is Australia's most valuable export and this year cracked $100 billion in annual export earnings for the first time. The price of the commodity has defied repeated predictions that it was overdue for a fall, and earlier this year returned to sky-high prices of above $US100 a tonne driven by robust demand from China's steel mills and weaker-than-expected output from rival overseas exporters such as Brazil's Vale.

Vivek Dhar, the Commonwealth Bank's director of mining and energy commodities research, on Thursday said iron ore prices had lifted back above $US110 a tonne on stronger demand from China. However, he cautioned that oversupply risks could threaten to bring prices down in the months ahead.

"While elevated steel mill margins are keeping iron ore prices well supported, the rise in China's iron ore port stocks suggest that oversupply risks are emerging," he said.

"We think rising port stocks should eventually weigh on iron ore prices later this year."

SMH