South Africa's iron ore export shipments rebound m-o-m in Nov'22

South Africa's iron ore export shipments stood at 3.52 million tonnes (mnt) in November 2022, recovering by 16.5% m-o-m as against 3.02 mnt in October, according to bulk vessel line-up data maintained with SteelMint.

This increase is the result of the lifting of Transnet's force majeure in November which was imposed in October owing to the labour strike. The force majeure had impacted Saldanha's port operations as there was no stock available, resulting in a significant setback in this port.

On a y-o-y basis, exports by the country fell 32% from 5.15 mnt in November 2021.

Meanwhile, cumulative export volumes inched down by 5.2% to 50.16 mnt in January-November 2022 as against 52.9 mnt in the year-ago period.

Shipments to China rise m-o-m

Shipments to China were recorded at 2.26 mnt in November, up 27% m-o-m compared to 1.78 mnt in October. The increase can be attributed to high demand from China amid increased crude steel output by mills from mid-November and the pre-holiday restocking patterns by steelmakers.

South Korea was the second-largest iron ore importer after China at 468,753 t in November, a surge of 160% against 180,067 t in October.

The Netherlands imported 378,317 t in the month, down by 58% against 792,853 t in the previous month. Sluggish steel production and delayed logistical movement in Europe throughout the winter months may be responsible for this drop.

Following a brief halt, the first vessel from South Africa for India in CY22 with a load of 60,500 t was tracked by SteelMint in November.

Prices firm up

Global iron ore prices moved up by $20/t in November on expectations of an improvement in demand. The current assessment for imported South African lump (Fe 64%) stands at $120/t CNF Kandla.

Prices saw a sharp drop till mid-month but rebounded by the end of November. Spot lump premiums were recorded at $0.16/dmtu towards the beginning of November which fell to $0.15/dmtu by month-end.

Exports from Kumba mines improve

Exports from the Kumba mines in November were recorded at 1.86 mnt, a 3.9% m-o-m rise as against 1.79 mnt in October. The Assmang mine exported 0.7 mnt of iron ore in November, down by around 20% compared to 0.87 mnt in October.

Outlook

It is expected that iron ore shipments from South Africa would see an uptick in the upcoming days as the Transnet's issue has been resolved now.