Australia: Iron ore export shipments up 6% m-o-m in Aug'21

Australia's iron ore export shipments increased by 6% in Aug'21 to 71.68 million tonnes (mn t) as compared to 67.75 mn t in Jul'21 on increased shipments from key miners like BHP and Rio Tinto, according to vessel line-up data maintained with SteelMint.

Exports to China marginally up in Aug'21
Notably, Australia's largest iron ore importer China recorded a rise in shipments by 2% to 58.48 mn t in Aug'21 against 57.28 mn t in the previous month.
Japan was the second-largest importer in Aug'21. The country imported 5.38 mn t of iron ore from Australia, up by 8% m-o-m as compared to 4.97 mn t in Jul'21.

Australia iron ore export shipments: Aug'21 v/s Jul'21

Qty in mn t
Source: SteelMint Stats, Customs
Provisional data

Shipper-wise performance-

• BHP's shipments increased by 5% m-o-m to 27.02 mn t in Aug'21.
  
  
• Export shipments from Rio Tinto increased to 27.55 mn t in Aug'21 from 23.42 mn t in Jul'21.
  
  
• FMG's shipments decreased to 10.93 mn t in Aug'21 from 11.9 mn t in Jul'21.
  
  

Exports from Port Hedland marginally down in Aug'21

In Aug'21, Port Hedland exported 42.38 mn t of iron ore against 43 mn t in Jul'21, registering a marginal 1% decline m-o-m. Exports from Dampier accounted for 11.8 mn t, followed by Walcott at 15.6 mn t.

The average global iron ore fines (Fe 62%) index was recorded at $161.3/tonne (t) CNF China, down 25% month on month. The spot price of iron ore Fe 62% fines dropped sharply by $13/t on 7 Sept'21 to $132/t CNF China tracking decline in iron ore futures.

We think that decline in iron ore prices was backed by some weaker than expected macroeconomic data in China as well as the implementation of curbs on crude steel production. There have also been some transitory factors like weather disruptions, the Covid outbreak etc. that influenced iron ore prices. However, it is expected that most of those will dissipate over the coming months. So, we are expecting a seasonal rebound in steel demand for the fourth quarter of 2021, particularly in the construction sector, said Elizabeth Gaines, CEO, FMG. We have already seen a very strong start to FY'22 and our guidance as we announced last month for iron ore shipments is in the range of 180 mn t to 185 mn t, she added.