Australia's Fortescue Metals Group predicted on Thursday thatiron ore shipments will increase in 2020, but it also marks rising costs asincreased production is used to meet China's largest market demand. ThePerth-based mining company expects shipments in fiscal year 2020 to be between170 million and 175 million tons, compared with 167.7 million tons in 2019.

FMG recorded a record 46.6 million tons of shipments in theJune quarter, including 4.7 million tons of Sipilbala powder; shipments in the19th fiscal year were 167.7 million tons, which was 1% lower than the 18thfiscal year due to the impact of Hurricane Veronica. The average selling priceincreased by 30% to $92/dmt, in the March quarter to $71/dmt; the cash cost was$12.78/wet, which was 5% lower than the March quarter ($13.51/wet).