(Reuters) – Fortescue Metals Group (OTC) increased its full-year iron ore shipments on Thursday as it ramps up production at the Eliwana operation in Western Australia.

This higher guidance is being issued against the background of rising steel prices in the March quarter. These are due to fears about disruptions to supply after Russia invaded Ukraine. There were also hopes for additional stimulus measures from China to offset any COVID-19 revival. [IRONORE/]

According to the World’s Fourth-largest Iron Ore Miner, it expects to ship between 185.5 million tonnes (mt), and 188.8 million mt in Fiscal 2022. That is an increase from the previous guidance of 180 mt or 185 mt.

Andrew Forrest, billionaire, runs the business. It reported that 46.5 million tonnes of iron ore were shipped in March. That’s up from 42.3 mt last year and beats UBS estimates of 46 mt.

Rio Tinto and BHP (NYSE:), which are larger rivals, have also warned of production disruptions from shortages in labour and supply chains. These risks were exacerbated due to the ongoing Russia-Ukraine War, high inflation, and prolonged Russia–Ukraine pandemic.

Fortescue’s capital increase estimate for Iron Bridge Magnetite in Western Australia was revised from $3.3 billion to $3.5 million to reflect the new estimate.