Australia: Iron ore, pellet export shipments fall 10% m-o-m in Oct'24
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- Shipments edge down by 4% y-o-y in Oct'24
- Exports to China suffer 10% m-o-m decline
Australia's iron ore and pellet export shipments dropped by 10% m-o-m to 68.5 million tonnes (mnt) in October 2024 compared to 75.9 mnt in September, as per vessel line-up data maintained with BigMint. Y-o-y, shipments inched down by 4% compared to 71.5 mnt in October 2023.
Exports to China drop 10% m-o-m
Australia's iron ore exports to the world's largest importer, China, were recorded at 58.3 mnt in October, down 10% m-o-m against 65 mnt in September.
South Korea and Japan were the other major importers from Australia in October: while Korea imported 3.9 mnt (a 5% m-o-m dip), around 3 mnt was shipped to Japan, a fall of 29% m-o-m.
The decline in Australia's iron ore export shipments in October 2024 can largely be attributed to weak market sentiment and decreased buying interest, particularly from China, which is a major consumer of Australian iron ore. The market saw a significant shift, as several northern Chinese cities, such as Tangshan and Handan, implemented level-2 emergency responses in expectation of heavy air pollution. These measures aimed to reduce emissions by curbing industrial activity, which affected steel mills' operations.
Shipper-wise performance
Rio Tinto's iron ore shipments were the highest at 24.1 mnt in October, down 14% m-o-m. BHP shipped 21.9 mnt (a 2% m-o-m fall) and FMG 15.9 mnt (a 15% m-o-m decrease) in October.
Port-wise exports
Port Hedland exported 42.9 mnt of iron ore in October, a decrease of 8% m-o-m compared to 46.5 mnt in September, followed by Port Walcott at 12.9 mnt, down 16% m-o-m. Shipments from Port Dampier fell by 12% m-o-m to 11.1 mnt.
Outlook
Australia's iron ore export shipments are expected to remain volatile, influenced by shifting market dynamics and fluctuating demand. The ongoing pollution control measures in northern Chinese cities and economic uncertainties are expected to impact procurement patterns.
