Australia: Iron ore export shipments marginally rise by 2% m-o-m in Nov'23

Australia's iron ore and pellet export shipments rose 2% m-o-m to 72.9 million tonnes (mnt) in November 2023 compared to 71.5 mnt in October, as per vessel line-up data maintained with SteelMint. However, shipments dipped 1% y-o-y to 776 mnt in January-November compared to the year-ago period.

Restocking before winter and maintain margins supported iron ore demand from Australia. Mills in China looked to blend medium and low-grade fines for cost-effectiveness as finished steel prices were stressed in the domestic market.

Exports to China up 6%

Australia's iron ore exports to the world's largest importer, China, were recorded at 61.9 mnt in November, increased by 6% m-o-m against 58.5 mnt in October.

South Korea and Japan were the other major importers from Australia in November. The latter supplied 4.3 mnt to South Korea, up 8% m-o-m, while 3.9 mnt was shipped to Japan, down 22%.

Shipper-wise performance

Rio Tinto's iron ore shipments were the highest at 26.2 mnt in November, up 2% m-o-m against 25.6 mnt in October. BHP and FMG shipped 25.8 mnt and 14.1 mnt, respectively.

Port-wise exports

Port Hedland exported 45.3 mnt of iron ore in November, up 3% m-o-m compared to 44 mnt in October followed by Port Walcott at 15 mnt, up 10% m-o-m, and however, Port Dampier down 6% m-o-m to 11.3 mnt, .

Price trends

Monthly average Australian Fe 62% iron ore prices increased by $11/t m-o-m to $130/t CFR China against $119/t a month ago.

Outlook

Market participants have an optimistic view on iron ore demand in the coming months, as most steel mills would likely start restocking soon amid firm finished steel demand in both domestic and export markets.