Brazilian steel group Gerdau's iron ore production jumped 89% year-on-year to 1.99Mt in the second quarter of 2014.

The production increase was mostly due to the startup of a new ore treatment unit in September 2013, the company reported in its quarterly earnings release.

Quarterly iron ore shipments increased 94.1% to 1.74Mt in the period, with 1.02Mt directed towards Gerdau's steel production units and 715,000t to third parties, representing expansions of 24.8% and 829% respectively.

"Compared to 1Q14, iron ore shipments to third parties decreased, due to the decline in international prices and logistic constraints occurred in 2Q14. The reduction was partially offset by higher shipments of iron ore to Gerdau's units due to the resumption of production in the blast furnace at the Ouro Branco unit," Gerdau said in the release.

The group's iron ore sales revenue reached 216mn reais (US$96.5mn) in Q2, up 74.2% year-on-year. Gross profit from iron ore was up 2% to 51mn reais, while Ebitda rose 15.2% to 53mn reais.

Based in Porto Alegre, Brazil, Gerdau is Latin America's largest steel producer, and the biggest long steelmaker in the Americas.