South Africa's iron ore exports fall by over 40% m-o-m in October

South Africa's iron ore export shipments in October 2022 stood at 3.02 million tonnes (mnt), down 41.69% m-o-m as against 5.2 mnt in September, according to bulk vessel line-up data maintained with SteelMint.

South Africa's iron ore exports fell almost 30% y-o-y in October to 3.02 mnt from 4.3 mnt in October 2021. Meanwhile, cumulative export volumes inched down by 2.3% at 46.64 mnt in January-October this year as against 47.75 mnt in the year-ago period. Notably, shipments to China were moved down over 50%.

South Africa's iron ore export shipments to China were recorded at 1.47 mnt, down 50.67% m-o-m in October compared to 2.98 mnt in September.
Prices witnessed a sharp downtrend which resulted in the fall in global iron ore prices. Spot lump premiums were recorded at $0.2/dmtu towards the beginning of October which fell to $0.15/dmtu by month-end.

The Netherlands emerged as the second-largest importer of iron ore in October. The country imported 620,523 t of iron ore from South Africa, remaining largely stable against 618,074 in September.
Other buyers such as South Korea imported 435,015 t (down 26.7%) followed by Japan with 224,057 t.

Force majeure imposed by Transnet owing to a strike led by Transnet Union. This had an impact on Saldanha's port operations as there was no port stock available, resulting in a significant setback in these ports.

Kumba exports decrease by around 50%

Kumba mines was affected adversely by this disturbance. Exports from the Kumba mines in October were at 1.79 mnt against 3.51 mnt in September. Exports decreased by 49% m-o-m. The Assmang mine exported 0.87 mnt of iron ore in October, down by around 20% compared to 1.08 mnt in August.

The current assessment for imported South African lump (Fe 64%) stands at $90/t CNF Kandla. However, the market outlook is not looking very optimistic for the rest of the year.