Australia: Iron ore export shipments fall by 12% m-o-m in Jan'24

Australia's iron ore and pellet export shipments fell by 12% m-o-m to 69.1 million tonnes (mnt) in January 2024 compared to 78.7 mnt in December, as per vessel line-up data maintained with BigMint. Meanwhile, shipments dipped by 5% y-o-y to 69.1 mnt in January, 2024 compared to 72.6 mnt in January, 2023.

Exports to China down 14%

Australia's iron ore exports to the world's largest importer, China, were recorded at 56.8 mnt in January, decreased by 14% m-o-m against 66.2 mnt in December.

South Korea and Japan were the other major importers from Australia in January. The latter supplied 4.6 mnt to South Korea, up 5% m-o-m, while 4.6 mnt was shipped to Japan, down 2%.

Lowered steel demand during the winter season in China has prompted steel mills to scale back production, causing a decrease in iron ore consumption and impacting the price.

Shipper-wise performance

Rio Tinto's iron ore shipments were the highest at 26 mnt in January, down 12% m-o-m against 29.5 mnt in December. BHP and FMG shipped 23.5 mnt and 11.7 mnt, respectively.

Port-wise exports

Port Hedland exported 41.3 mnt of iron ore in January, dipped by 13% m-o-m compared to 47.4 mnt in December followed by Port Walcott at 14.8 mnt, down by 14% m-o-m. Meanwhile, Port Dampier fell by 9% m-o-m to 11.2 mnt.

Price trends

Monthly average Australian Fe 62% iron ore prices decreased by $1/t m-o-m to $135/t CFR China against $136/t a month ago.

Outlook

The market might experience a slowdown around the Lunar New Year in early February, indicating a weak near-term outlook. Poor steel margins prompted only a few mills to carry out maintenance during the holiday season.