Mining and Pelletizing pellet sales volume increased 21% to 6.5 million long tons from last year, helped by stronger customer demand and two additional contract wins. Shipment volume was negatively impacted by bad weather which limited shipping capabilities during October and November.
For full-year 2019, Cliffs expects sales and production volumes of its productive capacity of approx. 20 million long tons.
Also see: Cleveland-Cliffs Q4 2018 Earnings Conference Call Transcript
Cliffs expects to realize Mining and Pelletizing revenue rates in the range of $102 to $107 per long ton, assuming that iron ore prices ($76 per metric ton), steel prices ($694 per short ton), and pellet premiums ($67.50 per metric ton) will average their respective January averages for the remainder of 2019.
Based on the same analysis using spot prices as of February 7, 2019, namely an iron ore price of $90.50 per metric ton, a steel price of $683 per short ton, and a pellet premium of $67.50 per metric ton, Cliffs anticipates Mining and Pelletizing revenue rates to come in the range of $111 to $116 per long ton for the full year of 2019.