Australia: Iron ore exports drop to 5-year low in Feb'24

Australia's iron ore and pellet export shipments, have witnessed a drop in February 2024 and were recorded at 57.5 mnt. The exports have dropped to the lowest level in five years according to data maintained with BigMint. Shipments fell by 17% m-o-m in February, 2024 as compared to 69.1 mnt in January, 2024.

Factors driving lower export shipments

• Iron ore export shipment witnessed a decline in February, 2024 as Australia got hit with some unfavourable weather in January, causing heavy rain that messed up mining operations and logistics.
  
  
• As a result of, the miners had to deal with planned shutdowns in February, making it even harder to keep up with export demands.
  
  
• Australia's iron ore exports to the world's largest importer, China, were recorded at 48.2 mnt in February, decreasing by 15% m-o-m against 56.8 mnt in January. Chinese steel mills, started procuring iron ore well in advance, ahead of the holidays, that led to the demand fall in February.
  
  
• Rio Tinto's iron ore shipments were the highest at 19.4 mnt in February, down 25% m-o-m against 26 mnt in January. BHP and FMG shipped 18.5 mnt and 13.3 mnt, respectively. Fortescue Metals Group (FMG), had a derailment incident last year. However, company is working extra hard to boost production, especially in the small stones and fines segment, to make up for the shortfall.
  
  

Outlook

Despite the tough times, things are looking up for Australia's iron ore exports. The cyclone season is almost over, so the weather disruptions should calm down. Plus, all the major suppliers are gearing up to increase production as the financial year wraps up, trying to make the most of market opportunities.