South Africa Iron Ore Export Shipments Fall on Decline in Chinese Imports
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As per bulk vessel line up data maintained with SteelMint, South African export shipments of iron ore in Oct'19 witnessed at 3.62 MnT, down 19% as against 4.47 MnT in Sep'19.
Exports to China down 79% M-o-M
South Africa's total iron ore export shipments to China for the month recorded fall of 79% to 0.81 MnT in Oct'19 as compared to 3.77 MnT in Sep' 19. The exports dropped to China amid extension in production curbs by two months from Aug'19 to Oct'19. Chinese mills were preferring domestic iron ore and post sie cargoes rather than seaborne cargoes to maintain margins.
Chinese mills depicted week long National holidays from 1st Oct inhibiting imports. Also, China's top steelmaking city of Tangshan issued second level pollution alert in Oct affecting production further. Besides, towards early Oct'19 mills in Tangshan were ordered to reduce sintering, pelletizing and blast furnace operations from Oct. 10 until Oct. 31.
South African exports to Netherland, Korea and Mauritius picked up to 0.40 MnT, 0.39 MnT and 0.22 MnT respectively.
South Africa Iron Ore Export shipment line up
Country | Oct'19 | Sep'19 |
China | 0.81 | 3.77 |
Netherland | 0.40 | - |
Korea | 0.39 | - |
Mauritius | 0.22 | - |
Japan | 0.20 | 0.25 |
Slovenia | 0.19 | - |
Denmark | 0.13 | 0.13 |
Others | 1.27 | 0.32 |
Grand Total | 3.62 | 4.47 |
Qty in MnT
Source: SteelMint, Custom
Provisional Data
Export shipments to India continued to remain nil for fourth consecutive month in Oct '19. The drop is attributed to availability of comparatively inexpensive domestic pellets. Major buyers from west India and south India have shifted to pellets. Jindal SAW pellet prices are assessed at INR 7,900/MT, delivered Kandla down compared to last month at INR 8,050/MT.
According to market sources report to SteelMint, assessment for South African lump to India has dropped amid fall in global iron ore prices but, booking continue to remain on lower side. Also, as per market participants, South African Saldanha port was under maintenance shut in Oct'19 and hence, booking are expected for Nov'19 deliveries post resumption at Saldanha port.