FMG predicts iron ore shipments will increase in 2020

Australia's Fortescue Metals Group predicted on Thursday thatiron ore shipments will increase in 2020, but it also marks rising costs asincreased production is used to meet China's largest market demand. ThePerth-based mining company expects shipments in fiscal year 2020 to be between170 million and 175 million tons, compared with 167.7 million tons in 2019.

FMG recorded a record 46.6 million tons of shipments in theJune quarter, including 4.7 million tons of Sipilbala powder; shipments in the19th fiscal year were 167.7 million tons, which was 1% lower than the 18thfiscal year due to the impact of Hurricane Veronica. The average selling priceincreased by 30% to $92/dmt, in the March quarter to $71/dmt; the cash cost was$12.78/wet, which was 5% lower than the March quarter ($13.51/wet).