Australia: Iron ore export shipments down 4% y-o-y in CY'21 on lower Chinese buying

Australia's iron ore (including pellets) export shipments witnessed a drop of 4% in CY'21 to 838 million tonnes (mn t) as compared to 876 mn t in CY'20, according to vessel line-up data maintained with SteelMint.

The decline in domestic steel demand in China amidst ongoing steel production curbs, blast furnace and sintering restrictions have resulted in lower exports.

Notably, export volumes in Dec'21 stood at 63.9 mn t, a fall of 8% on month as against 69.5 mn t in November on reduced shipments due to the Christmas holidays and berth maintenance.

Exports to China drop 5% in CY'21

Australia's largest iron ore importer, China, recorded a 5% y-o-y drop in shipments at 692 mn t in CY'21 against the previous year's 728 mn t.

Japan acquired the second-largest position among the top importers' list in CY'21. The country imported 58.1 mn t of iron ore from Australia, followed by South Korea at 54.6 mn t.

Shipper-wise performance

BHP's shipments to China stood at 329 mn t in CY'21 followed by Rio Tinto and Fortescue Metals at 302 mn t and 127 mn t, respectively.

Exports from Port Hedland down in CY'21

Port Hedland exported 518 mn t of iron ore in the period under review, down by 4% y-o-y compared to 537 mn t in CY'20. Exports from Port Walcott stood at 172 mn t followed by Port Dampier at 130 mn t.

Outlook

Australia expects its iron ore export volumes to continue rising, the Department of Industry, Science, Energy and Resources said. However, prices may ease in the coming years. It is to be noted that Australia-origin fines Fe 62% prices rose sharply from an average of $108/t CFR China in CY'20 to $160/t CFR in CY'21.