Australia: Iron Ore Export Shipments Hit Five Month Low in July

Australia – world`s largest iron ore exporter has recorded decrease in its month export shipments in Jul’18. The export quantity fell to a 5-month low at 66.67 MnT in July, lowest since Feb’18 which was 65.51 MnT then. Australian iron ore exports witnessed at 66.7MnT, down by 12% against 75.4 MnT in Jun’18. On yearly basis, exports depicted a marginal decline against 67.12 MnT in Jul’17.

However, in CY’18 (Jan-Jul`18) Australia`s iron ore export shipments witnessed an increase of 5% to 498.15 MnT compared to 475.55 MnT in the same period last year.

China’s iron ore imports from Australia hit lowest so far in CY18 – China continued to record the highest imports from Australia in Jul`18 with 80% of the total Australian export share. China’s imports from Australia depicted fall of 15% M-o-M to 53.03MnT in Jul`18 as against 62.1 MnT in Jun`18. Japan at 5.8 MnT stood the second largest importer of Australian iron ore in Jul`18 in line with Jun’18.

China- largest destination (contributing 80- 85%) of Australian iron ore exports. Hence, a change in Chinese market affects Australian exports. Chinese’s government strict environmental norms rendering shift towards high-grade iron ore from Brazil (Carajas fines) for blending purpose. Brazilian Sinter Feed Low Alumina iron ore is more cost-effective than using PB (Pilbara) fines only. This has resulted in a decline in China’s iron ore imports volumes from Australia.

The disparity in prices of Australian and Brazilian fines – This has resulted in a widening of price gap between Australian fines and Brazilian fines. As per reports, the price of high grade (Fe 65%) iron ore fines may hit USD 100/MT, CFR China against the price of Australian fines (Fe 62%) which is around USD 70/MT, CFR.

India Iron ore imports continue to increase by 26% in Jul’18 – Indian iron ore imports continue to increased in the month of Jul’18 by 26% to 0.7 MnT as against 0.56 MnT in Jun’18.

JSW Steel is a major importer of iron ore from Australia. As per customs data maintained with SteelMint, JSW Steel imported 1.27 MnT of iron ore in Jul`18 and remained the largest importer contributing 82% share of total Indian iron ore imports for the month. The imports depicted a significant rise on monthly basis to more than twice as against 0.47 MnT in June`18.

Country-Wise Australian Iron ore Export in Jul`18 vs. Jun`18

Qty in MnT
Source: SteelMint Stats and GAC Shipping,
Provisional Data

Port Headland iron ore exports fall to 5-month low in July

In Jul`18, Port Hedland marked the largest exporting port at 39.9 MnT, down 14% M-o-M as compared to 46.67 MnT inJun`18. The iron ore export figure from Port Hedland is lowest in last five months. Other major ports were Walcott at 15.33MnT (down 3% M-o-M) and Dampier at 10.67MnT (down 6% M-o-M).

Port-wise Export Jul`18 vs. Jun`18

Qty in MnT
Source: SteelMint Stats and GAC Shipping,
Provisional Data