Australia’s Fortescue Metals Group on Friday forecast a short-term recovery in iron ore prices , and said it shipped 124.4 million tonnes of iron ore in financial 2014.
Fortescue said it has completed its $9.2 billion debt-funded expansion to an annual production capacity of 155 million tonnes, with capital expenditure in financial 2014 coming in slightly below guidance at $1.9 billion.
Iron ore prices fell to a 21-month low at $89 a tonne in June as a flood of new supply overwhelmed demand in top buyer China. Prices have since recovered to $96.90 <.IO62-CNI=SI> but are still down nearly 28 percent so far this year.
Fortescue said its expects the market to rebalance in the short term as higher cost producers leave the market, stabilising the price.
The company said its average realised price for its products in financial 2014 was $106 per dry metric tonne. Delivered costs were $52 per wet metric tonne and it remained focused on trimming that figure, it said.