South Africa's iron ore exports rise 16% m-o-m in Mar'23

South Africa's iron ore export shipments stood at 5.08 million tonnes (mnt) in March 2023, up 16% m-o-m as against 4.37 mnt in February, according to bulk vessel data maintained with SteelMint. Exports rose by 21% y-o-y from 4.19 mnt in March 2022.

Total export volumes increased around 8% to 14.73 mnt in January-March 2023 as against 13.63 mnt in the year-ago period.

Shipments to China fall m-o-m

Shipments to China were recorded at 2.61 mnt in March, down 13% m-o-m compared to 3 mnt in February. Low demand for iron ore lumps and continuously decreasing global prices was the main factor behind decline in shipments.

The Netherlands was the second-largest iron ore importer from South Africa after China at 0.67 mnt in March. Easing supply chains and demand for iron ore in Europe led to the rise in exports. Japan exported 0.67 mnt during the month. Notably iron ore exports from South Africa to Japan were zero in February.

Prices firm up

Global spot iron ore (Australian Fe62% fines) prices moved up by $4/t in March on expectations of improvement in demand in China after the CNY holidays. South African iron ore lumps (Fe 64/63%) prices increased by $6/t to $141/t CFR China in March.

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

Exports from Kumba rise

Exports from Anglo American's Kumba mines in March were recorded at 3.6 mnt, up 21% m-o-m as against 2.98 mnt in February. The Assmang mine exported 711,050 mnt of iron ore in March, down 33% m-o-m against 1.06 mnt in February. However, no production was reported from the Sedibeng mines.

Outlook

It is expected that iron ore shipments from South Africa may see an uptick in the coming days as exports to European countries have increased in the previous month.