Iron ore price, page-52711

Some numbers for people to consider for Q3 FMG shipped 43.3T bringing the running total of IO shipments for the year to 31/3 at 137.9T (FY guidance 192-197). The figures tell us for FMG to attain the top end of guidance a total of 59.9T ought be shipped in Q4 for the bottom end 54.9T, these higher quarterly targets were a direct consequence of the FMG IO train derailment in December.

It is important to note FMG Management at their March 24 quarterly indicated they would achieve their FY guidance, from weekly data provided by MySteel it would appear FMG will deliver as suggested and will be rewarded at the appropriate time.

As you maybe aware in this reporting period the other major IO suppliers had their own disruptions the IO Price spike reflected that at the time (potential shortage) however the disruptions were short but the ramifications lingered ensuring a race to reach guidance was on for the major operators, this in my view is why we have a lower price at this moment, customers are in the drivers seat for now (supply and demand).

IMO there is more to FMG these days than IO patience is required, you decide.

Good luck to all…