Iron ore price, page-52012

hi Jhunt

yep LKAB (biggest IO producer in the EU) has its own issues for sure and they recently announced production downgrade for the next few years and have put the market on notice that further downgrades are possible.

https://www.highnorthnews.com/en/ir...ab-cut-production-and-other-possible-measures


“We are forced to cut production. The first step has been to reduce about one million tonnes per year. However, the situation is so dire that if we cannot run more iron ore trains, we must shut down even more operations and notify the staff of redudancies."
LKAB is considering closing down in Kiruna or Svappavaara based on what would be least damaging to the company. The company writes that discussions with trade union representatives concerning possible measures have been initiated.

According to LKAB, the financial consequences of further production cuts would mean revenue losses amounting to 5 billion kronor per year, or about 30 billion kronor up to 2030, in terms of today's prices.

“We have already been forced to restrict crude-ore transports between Svappavaara and Malmberget, thereby lowering production in Malmberget by one million tonnes per year, corresponding to revenue of more than one billion kronor at current prices."