China demand fuels Fortescue

MELBOURNE: Fortescue Metals Group Ltd, Australia's third-largest iron ore exporter, said second-quarter shipments jumped 44 percent on record demand from Chinese mills.

Shipments reached 9.1 million metric tons in the three months ended Dec 31, from the 6.3 million tons a year earlier, Perth-based Fortescue said. That's below a UBS AG estimate of 9.5 million tons.

Rio Tinto Group, Australia's biggest exporter, had record sales from its Pilbara mines last quarter as demand surged from China, the world's biggest buyer. Contract iron ore prices may jump 50 percent this year, according to forecasts by Nomura Holdings Inc and Bank of America Merrill Lynch.