Australia: Iron ore exports up 8% m-o-m in Aug'24

Australia's iron ore and pellet export shipments rose by 8% m-o-m to 73.5 million tonnes (mnt) in August 2024 compared to 67.8 mnt in July, as per vessel line-up data maintained with BigMint. Meanwhile, shipments inched up by 2% y-o-y in August 2024 compared to 71.8 mnt in August 2023.

In July, major mines underwent maintenance and had low stocks due to the fiscal year-end in June. However, in August, they increased iron ore production to cater to the demand for low and medium grades from China, driven by pressure on steel margins.

Exports to China rise 15%

Australia's iron ore exports to the world's largest importer, China, were recorded at 62.4 mnt in August, up 15% m-o-m against 54.1 mnt in July.

South Korea and Japan were the other major importers from Australia in August: while Korea imported 4.1 mnt (down 29% m-o-m) around 3.9 mnt was shipped to Japan, fell 11% m-o-m.

FMG shipment increases sharply by 32%

Rio Tinto's iron ore shipments were the highest at 26.3 mnt in August, up 3% m-o-m. BHP shipped 23.4 mnt (up 5%) and FMG 19 mnt, increased sharply by 32% in August.

Port-wise exports

Port Hedland exported 46.1 mnt of iron ore in August, up 12% m-o-m compared to 41 mnt in July followed by Port Walcott at 13.5 mnt, down 5% m-o-m. However, shipments from Port Dampier rose by 14% m-o-m to 12.7 mnt.

Price trends

Monthly average Australian Fe 62% iron ore prices sharply declined by $7/t m-o-m to $99/t CFR China against $106/t a month ago. Chinese steel mills' poor margins was the significantly influenced on the prices of imported iron ore.

Outlook

China's PMI data does not instill confidence but with the expected improvement in demand in September in China, iron ore procurement activities may witness an improvement.