Australia’s Fortescue Metals Group on Wednesday posted a weaker-than-expected fall in its half-year profit as declining iron ore prices eroded earnings from record half yearly shipments of the steel-making commodity.

Prices fell as stringent Covid-19 curbs in China and the country’s debt-laden property sector hurt steel demand in the world’s second-biggest economy.

Fortescue received $87 per dry metric tonne (dmt) in the first-half ended Dec. 31 for its iron ore, down from $96 per dmt a year earlier, taking the edge off record shipments of 96.9 million tonnes, up 4% from a year ago.

The miner also flagged that inflationary pressures will continue to be a risk for the remainder of the fiscal 2023.

The world’s fourth-largest iron ore miner said underlying net profit after tax for the six months ended Dec. 31 was $2.37 billion, compared with $2.78 billion a year ago. Analysts had expected a profit of $2.34 billion, according to Vuma Financial.

The company announced an interim dividend of A$0.75 per share compared with A$0.86 declared a year ago.