LKAB increased iron ore shipments by 2.2 times y/y in Q1

In January-March 2025, Swedish mining group LKAB increased shipments of iron ore by 2.2 times compared to the same period in 2024, to 6.5 million tons. Pellets accounted for 91% of shipments (95% in Q1 2024), according to the company’s interim report.

By contrast, production of iron ore products decreased slightly over the period, by 1.5% y/y – to 6.6 million tons. The company explains the significant increase in shipments by a low comparison base, as in the first quarter of 2024, shipments were significantly affected by accidents on the railway line for the transportation of ore.

LKAB’s net sales in January-March amounted to SEK 9.6 billion, which is almost twice as much as in the same period in 2024 (SEK 5.5 billion). Operating profit increased to SEK 3.6 billion from SEK 1.4 billion a year earlier.

The average global spot price for iron ore products in Q1 was $104/t, which is almost the same as in Q4 2024, but lower than in Q1 2024 ($124/t).

LKAB explains the improved financial results by systematic work to stabilize production, optimize production processes and maintain the stability of its enterprises. At the same time, the company acknowledged that transportation of crushed ore remains limited.

LKAB CEO Jan Moström noted that despite global political tensions and a shift in focus from climate issues to geopolitics, the company continues to consistently implement its strategy of modernizing and greening production. In the first quarter, three LKAB projects were included in the list of strategic projects under the CRMA law by the European Commission, which is a positive signal for the company’s further development.

As GMK Center reported earlier, in 2024, LKAB reduced iron ore production by 13.3% year-on-year to 22.7 million tons. Significant accidents on the iron ore railway line in early 2024 affected supply volumes, which ultimately amounted to 21.9 million tons (-13.4% y/y). The share of pellets in total sales was 87%, down from 84% a year earlier.