SHANGHAI, Feb 18 (SMM) – The world's biggest miner, BHP Group produced 121.4 million mt of iron ore in the second half of 2019, up 2% on the year, with production in the fourth quarter accounting for 60.4 million mt, according to a half-year report of the company.
Production guidance for the 2020 financial year remains unchanged at between 242 and 253 million mt (273 and 286 million mt on a 100 per cent basis).
Iron ore supply faced great downward pressure in the second half of last year, on the back of the imbalance in Brazil's export recovery and stronger-than-expected downstream demand from China amid its slack implementation of winter cut at steel mills.
The report also showed that prices of 62% iron ore ranged from $78/mt to $126/mt in the second half of 2019, with an average price of $95/mt.
The duration and intensity of the novel coronavirus outbreak will likely be a major source of uncertainty that affects iron ore prices in the coming year.