Australia: Iron ore export shipments down 10% in Jul'21 as China demand falls

Australia's iron ore export shipments decreased 10% in Jul'21 to 67.75 mn t as compared to 75.41 mn t in Jun'21, dragged down by a drop in China's demand, according to the vessel line-up data maintained with SteelMint.

Exports to China fall 7% in Jul'21 m-o-m

Notably, Australia's largest importer, China, recorded a sharp decline in shipments by 7% to 57.28 mn t in Jul'21 against 61.87 mn t in the previous month. Growing concerns over demand for iron ore on stricter steel output cuts and rising Covid-19 cases limited demand. China is shifting its focus to cutting down on output in a move away from the past. The core task is to eliminate excess and obsolete steel capacities, Wu Xianfeng, an official from the Ministry of Ecology and Environment (MEE), said in Shanghai on July 29 at the China Iron and Steel Association's (CISA)'s interim meeting with its members.

Japan was the second-largest importer in Jul'21. The country imported 4.97 mn t of iron ore from Australia, also down by 7% as compared to 5.36 mn t in Jun'21.

Australia iron ore export shipments: Jul'21 v/s Jun'21

Qty in mn t
Source: SteelMint Stats, Customs
Provisional data

Shipper-wise performance:

• BHP's shipments reduced by 22% m-o-m to 25.78 mn t in Jul'21.
  
  
• Export shipments from Rio Tinto decreased from 23.97 mn t in Jun'21 to 23.42 mn t in Jul'21.
  
  
• FMG's shipments increased from 10.11 mn t in Jun'21 to 11.9 mn t in Jul'21.
  
  

Exports from Port Hedland down 13% in Jul'21 m-o-m

In Jul'21, Port Hedland exported 43.03 mn t of iron ore against 49.37 mn t in Jun'21, registering a 13% fall m-o-m. Walcott accounted for 13.11 mn t, followed by Dampier at 10.3 mn t, Esperance at 0.7 mn t, and Geraldton at 0.59 mn t.

Subdued demand continued to weigh down prices. The spot price of iron ore Fe 62% fines dropped sharply by $14.5/t on 30 Jul'21 to $180.5/t CFR China tracking the decline in the iron ore futures market.