Rio Tinto: Iron Ore Shipment Up 5% Y-o-Y in Q1 CY20
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World's second largest iron ore miner- Rio Tinto's Pilbara iron ore shipments witnessed at 72.9 MnT for Q1 CY20, up 5% as against 69.1 MnT in Q1CY19. The shipments picked up amid recovery across the networks in March following tropical cyclone Damien in February 2020.
On a quarterly basis, miner depicted a 16% drop in shipments in the first quarter of the year when compared to Q4 CY19 sales at 86.8 MnT.
IOC production increased 3% in Q1 CY20
IOC iron ore pellet & concentrate production in Q1 CY'20 recorded at 2.6 MnT, up 3% as against 2.48 MnT in Q1CY19 due to improved concentrator feed. The miner at IOC changed the product mix and increased the focus on production of concentrates to meet the market demand. On a quarterly basis, the production stood stable at 2.6 MnT.
Iron ore production picked up by 2% in Q1CY20
Rio Tinto's Pilbara depicted a 2% rise on yearly basis in iron ore production to 77.8 MnT in Q1CY20 as against 76 MnT in Q1 CY19. The operations were affected by Tropical cyclone Damen which caused infrastructural damages. However, there was a strong recovery in March across mines, rail and port.
For the quarter, the production fell 7% against 83.6 MnT in Q4 CY19.
Rio Tinto guidance for 2020:
1. Rio Tinto set's its 2020 Pilbara iron ore shipment guidance at 324-334 MnT. The miner had reduced the guidance towards Feb'20 amid the cyclone Damen from the previous set guidance at 330-343 MnT.
2. At IOC, the iron ore pellet and concentrate production guidance for 2020 remains intact at 10.5-12 MnT.
Rio Tinto recent updates
1. The Pilbara projects are progressing with implementation of border controls to limit the transmission of Covid-19.The ramp-up of Koodaideri is still expected to occur in early 2022.
2. Pilbara iron ore unit cost guidance for 2020 remains unchanged at USD 14-15/MT.
3. The demand for the high grade ore continues to remain strong for the quarter driven by a combination of seaborne supply disruptions and solid demand from China's steel mills despite Covid-19 impacts. The portside trading trial continues in China with the 1 MnT of ore sold.
