South Africa's iron ore export shipments down 6% in Jul'21 on weaker China demand
South Africa’s iron ore export shipments in Jul’21 stood at 4.66 million tonnes (mn t), down by 6% as against 4.94 mn t seen in Jun’21, acco...
South Africa's iron ore export shipments in Jul'21 stood at 4.66 million tonnes (mn t), down by 6% as against 4.94 mn t seen in Jun'21, according to bulk vessel line-up data maintained with SteelMint.
Shipments to China decrease 36%
South Africa's iron ore export shipments to China in Jul'21 were recorded at 1.98 mn t, down 36% as compared to 3.08 mn t seen in Jun'21. Expectations of steel production cuts in China in H2CY'21 have dragged down demand for high-quality iron ore, including lumps. Spot lump premiums were recorded at $0.73/dmtu towards the beginning of Jul'21 which fell to $0.4350/dmtu by month-end.
The Netherlands was the second-largest importer at 0.68 mn t in Jul'21. The country imported 0.48 mn t of iron ore from South Africa, higher by 42% as compared to 0.48 mn t in Jun'21.
Namibia witnessed its first iron ore import shipment from South Africa in CY'21. Imports stood at 0.05 mn t for the month.
Export shipments to India continue to remain nil
Iron ore shipments from South Africa to India continued to remain nil in Jul'21 too. Imports were last seen at 144,292 tonnes (t) in Dec'20.
The current assessment for imported South African lumps (Fe 64%) stands at $215/t as on 10 Aug'21, CNF Kandla. However, with falling global iron ore prices, imported lumps offers remain unviable at the current levels. Indian mills continue to prefer domestic ore and pellets on cost-effectiveness. The monthly average global iron ore fines (Fe 62%) index was stable at $214/t, CFR China in Jul'21 against Jun'21.
South African iron ore export shipments line-up
Fig in t
Provisional data
Source: SteelMint
Outlook
High global iron ore prices may continue to keep imports of South African lumps into India on the lower side as domestic substitutes are more preferable.