Australia: Iron ore exports edge up by 15% m-o-m in Mar'23

Australia's iron ore and pellet export shipments increased by 14% m-o-m to 70.83 million tonnes (mnt) in March 2023 compared to 62 mnt in February, as per vessel line-up data maintained with SteelMint.

Exports to China up 12%

Australia's iron ore exports to the world's largest importer, China, were recorded at 59.88 mnt in March, up 12% m-o-m against 53.52 mnt in February. Iron ore exports from Australia to China rose in March as China ramped up purchases of low- and medium-grade iron ore instead of high-grade as steel margins fell.

Japan and South Korea were the second- and third-largest iron ore importers from Australia in March. The latter supplied 4.64 mnt to Japan, up 29% m-o-m, while 3.20 mnt was shipped to South Korea, down 0.6% m-o-m.

Shipper-wise performance

Rio Tinto's iron ore shipments were the highest at 28.22 mnt in March, up 23% m-o-m against 22.93 mnt in the previous month. BHP and FMG shipped 21 mnt (up 17%) and 13.83 mnt (down 8%), respectively.

Exports from Port Hedland

Port Hedland exported 40.9 mnt of iron ore in March, up 9.35% m-o-m compared to 37.4 mnt in February followed by Port Walcott at 16.7 mnt, up 44 % m-o-m, and Port Dampier at 11.5 mnt, largely stable m-o-m.

Price trends

Monthly average Australian Fe62% iron ore prices remained stable at $127/t CFR China in March 2023 compared to the previous month.

Outlook

Australia's iron ore exports are expected to remain volatile amid uncertain Chinese demand for raw materials and financial instability in the global market.