However, he said shipments hit a record level in March as the company focused on recovering its output. Guidance for total financial-year shipments remains unchanged but will be at the lower end of the expected 192 to 197 million tonne range.

“While guidance has been maintained, albeit at the low end, it implies that Fortescue will need to ship 52 million tonnes in Q4 to hit the low end of guidance,” analysts at RBC Capital Markets said.“We expect a neutral reaction [from markets], as the stock has underperformed heading into the quarterly result.”

The company’s crucial high-quality Iron Bridge project is facing significant problems with a faulty water pipeline and plant teething issues slowing its output. Work is under way to replace a high-pressure section of the pipeline and improve its performance, and the mine’s process plan was reconfigured to deal with the water supply issues.

Otranto said China’s steel demand was becoming increasingly diversified, with strong growth across infrastructure, manufacturing and renewable energy sectors.

“China’s rollout of wind and solar capacity blew my mind,” he said after a recent visit to the Asian powerhouse. “Renewable energy infrastructure needs a lot of steel.”

Fortescue shares ended Wednesday 0.7 per cent higher at $24.76.

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