Australian mining giants Rio Tinto and FMG have announced record iron ore shipments with BHP Billiton, most of which are sent to China, because the boom in infrastructure and real estate construction in the world’s second largest economy has boosted steel production. Pick up.
According to the report, the record gains from iron ore exports are despite the global demand for steel being suppressed by the new crown pneumonia epidemic, and exports of other mineral raw materials such as aluminum and copper are still sluggish.
The data shows that in the first half of the year, the number of iron ore sent from Australia to China hit a record high, and the number of coking coal and thermal coal exported to China through the country also increased significantly. This shows that despite the relative tension between Australia, the trade between the two countries seems Did not receive too much interference.
Rio Tinto reported a few days ago that iron ore shipments to China in the first half of this year increased by 3% over the same period last year. This resulted in a 2% increase in the company's earnings over the same period and made the Australian mining company promise to pay shareholders a dividend of $2.5 billion.
When FMG announced its financial results for the fourth quarter of the 2019-20 fiscal year, it predicted that in the entire fiscal year ending in June, iron ore shipments to China would increase by 6% to 178 million tons, exceeding its 177 million tons. Annual export volume target. The company's annual results will be announced within a few weeks.
The mining giant also said that in the first six months of this year, China's steel production was strong, reaching 499 million tons, which boosted the company's iron ore exports, an increase of 1.4% over the same period last year.
Rio Tinto also said that steel markets in Europe, the United States, Japan and South Korea are still weak.
Rio Tinto said that despite the impact of the pandemic, Australia’s contract-based iron ore shipments are still strong, which makes it outperform other major mining companies, such as Brazil’s Vale, which is subject to production restrictions. However, due to rising iron ore prices, its profit in the second quarter also rebounded.
