The world’s second biggest miner by revenue BHP (ASX:BHP)
is capitalising on momentum from record-breaking iron ore prices and under-performances by rivals, propelling the company’s output of the steel-making ingredient.
The mining giant’s projects in the Pilbara region delivered 66 million tonnes of iron ore in the third quarter of the fiscal year, bumping up the total iron ore production output for FY21 to 211 million tonnes. This represents a record high in the total volume of iron ore shipped in 3 quarters. The company’s projections suggest BHP will meet its iron ore output guidance of 276 to 286 million tonnes.
While Brazilian competitors are experiencing production setbacks, causing rivals such as Vale to miss out on soaring iron prices driven by increased demand from Chinese steel manufacturers. The price of iron ore continued to reset records to reach an all-time high of $189 per tonne, following a shortfall in supply and the Chinese government’s coronavirus stimulus packages for the its steel industry.
Experts believe iron ore, Australia’s biggest export, has played a major role in the economy’s rapid recovery from the impact of COVID-19. The commodity broke the record for yearly commodity earnings last year, generating $120 billion in export revenue.
Shares in BHP (ASX:BHP)
are trading 1.96 per cent lower at $46.52