Fortescue announces shipments of 47.5 million tons of steel goods in December quarter, but should be wary of labor shortage

Australian iron ore miner Fortescue Metals Group on Tuesday reported a 2% increase in shipments in the second quarter, but pointed to strong demand for labor and resources and pressure on supply chain constraints caused by a pandemic.

The world's fourth-largest iron ore miner shipped 47.5 million tons of steel commodities in the December quarter, compared with 46.4 million tons in the same period last year.

Larger competitors BHP Billiton and Rio Tinto also warned that labour shortages caused by the coronavirus could be disrupted as Australia faces a surge in Omicron cases.

Slightly optimistic production results have come against the backdrop of stricter environmental and production controls and the crisis in China's real estate sector, which have dampened forecasts for steel demand.

Fortescue, run by billionaire Andrew Forrest, left its annual shipments forecast unchanged.