Australia: Iron Ore Export Shipments Down 8% in Q1 CY20 on Lower Chinese Buying

Australia - world's largest iron ore exporter has recorded 8% drop in iron ore shipment for Q1CY'20, according to the vessel line up data maintained with SteelMint. Australia's iron ore export shipments recorded at 202.08 MnT in Q1CY'20, as compared to 219.96 MnT in Q4CY'19.

Australian iron ore exports dropped due to weak Chinese demand amid Lunar New Year holidays in Jan'20 followed by an outbreak of coronavirus. The pandemic led to the closure of numerous steel mills in China.

On yearly basis, exports picked up 8% against 187.91 MnT in Q1 CY'19.

On a monthly basis, Australian iron ore exports for the Mar'20 picked up sharply by 33% to 77.32 MnT against 58.02 MnT in Feb'20. Due to the fallen steel margin, Chinese steel mills were shifted towards low-grade iron ore.

Average iron ore prices up slightly in Q1CY20

The average iron ore fines (Fe 62%) prices in Q1 CY20 increased to USD 89.1 /MT as against USD 88.4/MT in Q4CY19. Monthly average global iron ore prices increased to USD 88.1/MT, CFR China in Mar'20 compared to USD 86.5/MT, CFR China in Feb'20.

Australian exports to China down 9% in Q1CY20

China marked the largest importer of Australian iron ore for the quarter at 165.46 MnT, down 9% Q-o-Q against 180.90 MnT in Q4CY'19. Japan stood second-largest importer for the month at 15.50 MnT (down 6% Q-o-Q) followed by Korea at 13.23 MnT.
Australian exports to India recorded nil for the twelfth consecutive month in Mar'20.

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

Port Hedland accounted for 63% of exports in Q1 CY'20

In Q1CY'20, Port Hedland exported 127.16 MnT iron ore, down 3% against 131.53 MnT in Q4 CY'19. Walcott stood second-largest exporter at 40.22 MnT, followed by Dampier at 30.79 MnT and Geraldton at 2.46 MnT.