Fortescue’s iron ore deluge set to flow

Here are the highlights of FMG’s December quarter production report:

By year end that is another 100 million tonnes online versus two years earlier, all of India’s fading capacity available from just one firm. When I wrote my 2013 forecast piece I was not aware that FMH had renewed its Kings push. Combined with Rio and BHP, that will be approaching 200 million tonnes of new capacity for 2014. And more again that year. With Brazil entering in a big way in 2015. I expect Indian capacity will also return by year end.  

It’s a deluge.

Fortescue Metals Group Quarterly Report


  1. HnH,

    Apologies, but I’m not that familiar with the IO market, so basic question…

    what is driving the reduction in Indian capacity? Is it a too high cost producer at levels below X or are they running down reserves?

    Also, with the additional output from Brazil, do they have sufficient port access to export their increased demand?