South Africa's iron ore exports drop 17% m-o-m in Feb'23

South Africa's iron ore exports stood at 4.37 million tonnes (mnt) in February 2023, down 17% m-o-m as against 5.28 mnt in January, according to bulk vessel data maintained with SteelMint. Exports fell by 11% y-o-y from 4.88 mnt in February 2022.

Total export volumes inched up around 2% to 9.65 mnt in January-February 2023 as against 9.44 mnt in the year-ago period.

Shipments to China fall m-o-m

Shipments to China were recorded at 2.72 mnt in February, down 9% m-o-m compared to 2.99 mnt in January. Chinese steelmakers are prefering low-grade iron ore as steel spreads have fallen.

The Netherlands was the second-largest iron ore importer from South Africa after China at 396,000 t in February, a sharp drop of 59% from 966,726 t in January. Sluggish steel production and logistical bottlenecks in Europe in the winter months led to the decline in imports.

Japan imported 280,200 t during the month, up 65% against 170,000 t in January.

Prices firm up

Global spot iron ore (Australian Fe62% fines) prices moved up by $4/t in February on expectations of improvement in demand in China after the CNY holidays. South African iron ore lumps (Fe 64/63%) prices have increased by $4/t to $140/t CFR China.

Lump premiums increased during the month: the spot lump premium averaged $0.12/dmtu in February.

Exports from Kumba rise

Exports from Anglo American's Kumba mines in February were recorded at 2.98 mnt, up 24% m-o-m rise as against 2.40 mnt in January. The Assmang mine exported 1.06 mnt of iron ore in February, a three-fold rise compared to 350,000 t in January.

Outlook

It is expected that iron ore shipments from South Africa may see an uptick in the coming days, with resolution of logistics issues in the European Union and improvement in iron ore lump demand from China.