- While Vale presses ahead with output expansion, Australia’s Fortescue Metals (OTCQX:FSUMF -4.7%) says it is capping iron ore shipments, becoming the first of the top exporters to quit the race to funnel fresh supplies into the oversupplied market.
- The miner says iron ore shipments totaled 165.4M metric tons in the fiscal year through June, up 33% Y/Y and at the top end of its earlier projection of 160M-165M tons.
- Fortescue says it expects to cut costs a further US$1.4B in the fiscal year through June 2016, almost matching the US$1.6B of savings recorded over the prior two years, which CFO Stephen Pearce says “means we will produce the same amount of tons as we did last year, and we will spend US$1.4B less in doing so.”
- Nevertheless, iron ore producers are broadly lower again amid slumping commodity prices: VALE -1.7%, BHP -2.4%, RIO -1.4%.