Shougang Hierro Peru’s shipments declined by 14.3pc to 13.8mn mt of iron ore in 2020 compared to 16.1mn mt in 2019. Despite the lower shipments, the company’s profits rose on robust price increases in iron ore throughout the year.
The company produced 97pc of the iron ore mined in Peru, with the remaining 3pc generated by Shouxin, a subsidiary of Shougang.
Shougang’s revenue rose by 33.5pc to PEN4bn ($1.1bn) in 2020 against the prior year while its net profit rose by 19.5pc to PEN1.3bn after income tax expense for 2020 compared to PEN1.1bn in 2019.
Through 2020, the average price of iron ore climbed by 15pc compared to the annual average in 2019. Iron ore prices were at $155.8/mt on December 31, 2020, the highest price level in the last six years. The higher price levels were influenced by Chinese demand for the raw material and the landslide at Vale’s Córrego do Feijão iron mine which generated supply-side concerns in the international market.