BHP cuts iron ore production outlook, will it help boost iron-ore prices, Aussie?
BHP Group, the world’s biggest miner, announced on Wednesday that it slashed its forecast for iron ore output after a tropical Australian cyclone, Reuters reports.
This comes after its rival Rio Tinto also cut its production outlook. Rio Tinto suffered operational issues in the first quarter, including a fire at its Cape Lambert operations.
Additional Details:
“BHP, which put its fiscal 2019 iron ore production under review following the cyclone, lowered its forecast to 265 million-270 million tonnes, from 273 million-283 million tonnes.
Iron ore output for the three months to end-March fell 5 percent to 64 million tonnes, down from 67 million tonnes a year ago.
BHP also increased its full-year production costs to less than $15 a tonne, from less than $14 a tonne previously, due to lower volumes and increased remediation costs.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
