Australia: Iron ore export shipments fall 6% m-o-m in Jan'22 on lower Chinese buying

Australia's iron ore (including pellets) export shipments witnessed a fall of 6% in Jan'22 to 71.6 million tonnes (mnt) as compared to 76.3 mnt in Dec'21, according to the vessel line-up data maintained with SteelMint.

Exports to China drop 6% in Jan'22

Australia's largest iron ore importer, China, recorded a 6% m-o-m drop in shipments at 59.6 mnt in Jan'22 against the previous month's 63.3 mnt which lowered the overall shipment volumes. Chinese steel mills in provinces where events for the ongoing Winter Olympic Games are being held were being asked to further restrict their operations in response to deteriorating air quality, according to market sources on February 9-10. This may have lowered iron ore sourcing too on demand concerns.

Japan bagged the second-largest position in the top importers' list in Jan'22. The country imported 4.49 mnt of iron ore from Australia, followed by South Korea at 3.95 mnt.

Shipper-wise performance

BHP's shipments to China stood at 29 mnt in Jan'22 followed by Rio Tinto and Fortescue Metals at 23.7 mnt and 12.5 mnt, respectively.

Exports from Port Hedland down in Jan'22

Port Hedland exported 46.2 mnt of iron ore in the month under review, down by 5% m-o-m compared to 48.7 mnt in Dec'21. Exports from Port Walcott stood at 13.4 mnt followed by Port Dampier at 10.2 mnt.

Major Australian miners maintain iron ore production guidance

• FMG's iron ore shipment guidance remained unchanged at 180-185 mnt for FY'22 (Jul'21-Jun'22).
  
  
• The BHP Group's FY'22 iron ore production guidance from Western Australia (100% basis) remains unchanged at around 278-288 mnt for the fiscal year.
  
  
• However, Rio Tinto has improved its Pilbara iron ore shipment guidance for CY'22 to 320-335 mnt against 320-325 mn t earlier. The shipments guidance remains subject to risks around commissioning of new mines and management of cultural heritage, including any impact from the recent changes to the Aboriginal Heritage Act, 1972 (WA).