Australia’s Atlas Iron warns cheap Canada Goose of oversupply as its canada goose uk shop output goes up
SYDNEY, July 10 canada goose uk outlet (Reuters) Australian iron canadian goose jacket ore miner Atlas Iron Ltd beat its full year production guidance but warned canada goose clearance it was selling ore at buy canada goose jacket cheap a discount due to uk canada goose outlet soft market conditions caused by over supply.
Atlas, which said it mined 10.9 million tonnes of iron getcanadagooseoutlet ore in canada goose coats on sale the fiscal year to June 30, sells ore exclusively to China.
The canada goose coats company on Thursday Canada Goose online noted the iron ore market Canada Goose sale had softened as a result of the additional supply introduced by the cheap canada goose uk major producers over a relatively More short period.
Combined with credit constraints in China this had led to lower prices for the benchmark 62 percent iron content ore and steeper canada goose factory sale discounts for Atlas lower grade ore over the second half, and in particular the June 2014 quarter, it said.
Sector majors Rio Tinto and Fortescue Metals Group have also been forced canada goose store to cut prices of low grade iron ore cargoes to China, by up to 15 percent, as competition heats up amid Canada Goose Online rising supply.
The move underscores the iron ore market move into surplus as fellow Australians Rio, BHP Billiton and Fortescue buy canada goose jacket ramp up output, overwhelming demand growth in China.
Iron ore has fallen by almost a third in 2014.
In response, Chinese steel mills have wound back long term uk canada goose supply contracts in favour of cheaper spot cargoes.
Rio Tinto mines Australia recently reached a production rate of 290 million tonnes a canada goose uk black friday year, with expansion work underway canada goose clearance sale to increase Canada Goose Coats On Sale the rate to 360 million tonnes a year.
Rio is Canada Goose Jackets forecast to show canada goose black friday sale a big rise in June quarter iron ore output when it releases production data on July 16.
On the same day, Fortescue, which targeted a 57 percent lift in output this year, is scheduled to disclose operational and pricing data for the June Canada Goose Outlet quarter and fiscal 2013/14.
Morgan Stanley sees the benchmark price averaging $95 a tonne in canada goose the second Canada Goose Parka half of 2014. (Reporting by James Regan; Editing by Michael Perry).