SHANGHAI Cliffs Natural Resources Inc.s revenues fell 6 percent year on year to $1.5 billion in the second quarter of 2013 due to a drop in seaborne iron ore prices.
Global seaborne iron ore prices fell 11 percent to an average of $126 per tonne for 62 percent iron fines c.f.r. China during the period, the company said.
Cleveland-based Cliffs posted net income of $141.3 million during the April-June period, down 48.5 percent compared with $274.3 million a year earlier.
Cliffs sales of iron ore pellets from its U.S. operations stood at 5.7 million long tons during the quarter, up from 5.4 million tons a year ago. Meanwhile, iron ore sales from its eastern Canada operations dropped 18 percent year on year to 1.9 million tonnes, as Cliffs idled its Wabush pellet plant at Pointe Noire at the end of the quarter.
Iron ore sales from its Asia-Pacific operations also slipped 3 percent on the year to 3 million tonnes, due to the absence of sales volume from Cliffs Cockatoo Island operation, which ceased production during the third quarter of 2012, the company said.
North American coals sales increased by 34 percent to 2.1 million short tons in the second quarter.
Cliffs expects demand from North America and China, its two largest end markets, to remain stable.
It is keeping its full-year production and sales guidance unchanged for most of its operations, with U.S. iron ore production and sales at 20 million long tons and 21 million long tons respectively, Asia-Pacific iron ore production and sales at 11 million tonnes, North American coal production and sales at 7 million short tons.
But it reduced Eastern Canadian iron ore production and sales target to 8 million to 9 million tonnes, from the previous 9 million to 10 million tonnes, due to lower-than-expected throughput and ore recovery rate at Bloom Lake Mine.
A version of this article was first published in AMM sister publication Steel First.