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
| Country | Jul`18 | Jun`18 | M-o-M (%) |
| China | 53.03 | 62.1 | -15% |
| Japan | 5.84 | 5.82 | 0.34% |
| Korea | 5.37 | 4.15 | 29% |
| Taiwan | 1.38 | 1.44 | -4% |
| India | 0.7 | 0.56 | 25% |
| Indonesia | 0.18 | 0.38 | -53% |
| Vietnam | 0.18 | 0.85 | -79% |
| Hong Kong | - | 0.06 | -100% |
| Grand Total | 66.7 | 75.4 | -12% |
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
| Port | Jul`18 | Jun18 | M-o-M (%) |
| Hedland | 39.90 | 46.67 | -14% |
| Walcott | 15.33 | 15.86 | -3% |
| Dampier | 10.67 | 11.35 | -6% |
| Geraldton | 0.77 | 0.84 | -8% |
| Esperance | - | 0.65 | -100% |
| Grand Total | 66.7 | 75.4 | -12% |
Qty in MnT
Source: SteelMint Stats and GAC Shipping,
Provisional Data
http://www.miningnewspro.com/en/News/235264/Australia: Iron Ore Export Shipments Hit Five Month Low in July