SYDNEY, May 5 (Reuters) - April iron ore shipments to China from Australia's Port Hedland, used by BHP Billiton (LON:BLT) BHP.AX and Fortescue Metals Group FMG.AX , eased slightly in April versus March, according to the Pilbara Ports Authority.
Chinese shipments from the Indian Ocean port - the world's largest of its kind - totalled 32.6 million tonnes compared with 32.9 million tonnes in March, data from the authority showed.
Overall iron ore shipments from the port dropped to 37.7 million tonnes in April from 39.5 million in March, the figures showed.
Iron ore and other steel ingredients, such as coking coal and coke, ended April with their biggest monthly price gains on record in China on the back of a rally in Chinese steel. ore for immediate delivery to China's Tianjin port .IO62-CNI=SI stood at $61 a tonne versus just $42.90 on Jan. 1, when oversupply and a weak Chinese steel outlook weighed heavily on the sector.
Citi analysts as recently as last month forecast iron ore to average just $38 a tonne in the fourth quarter of this year, while an Australian government forecast pegged iron ore at $45 a tonne by the end of December. by top Australian suppliers to trim production by tens of millions of tonnes have also helped buoy prices.
BHP, the world's no. 3 producer, cut iron ore production guidance for the year to June 30, 2016, by 10 million tonnes, while Rio Tinto RIO.AX RIO.L shaved its calendar 2017 production guidance by 10 million to 20 million tonnes. additional new supply from Gina Rinehart's Roy Hill mine and steady output of 165 million tonnes per year by Fortescue was ensuring ample supply for the rest of the year, suggesting prices could contract again if Chinese steel demand waivers.