South Africa's iron ore exports drop 8% m-o-m in Apr'23

South Africa's iron ore export shipments stood at 4.69 million tonnes (mnt) in April 2023, down 7.6% m-o-m as against 5.08 mnt in March, according to bulk vessel data maintained with SteelMint. Exports remained largely stable y-o-y compared to 4.72 mnt in April 2022.

However, export volumes increased around 6% to 19.43 mnt in January-April 2023 as against 18.35 mnt in the year-ago period.

Shipments to China fall

Shipments to China were recorded at 2.76 mnt in April, up 5.7% m-o-m compared to 2.61 mnt in March. Iron ore exports to China increased in April despite low demand in China.

The Netherlands was the second-largest iron ore importer from South Africa at 0.71 mnt in April followed by Japan at 0.64 mnt.

Prices fall in April

Global spot iron ore (Australian Fe62% fines) prices moved down by $10/t to $117/t CFR China in April due to lack of market liquidity and drop in futures prices.

South African iron ore lumps (Fe 64/63%) prices decreased by $13/t to $128/t CFR China in April.

However, lump premiums increased by $0.05/dmtu during the month and the spot lump premium averaged $0.17/dmtu in April.

Prior to China's Labour Day holidays, too, demand had remained sluggish as steel inventory piled up amid falling steel margins.

Exports from Kumba rise

Exports from Anglo American's Kumba mines in April were recorded at 3.02 mnt, down 16% m-o-m as against 3.6 mnt in March. The Assmang mine exported 0.97 mnt of iron ore in April, up 37% from 0.71 mnt in March. However, no production was reported from the Sedibeng mines in the last three months.

Outlook

It is expected that iron ore shipments from South Africa may fall as Chinese steel inventories are high and demand for iron ore is low. Chinese imports may also fall next month.