South Africa's iron ore exports rise by over 15% m-o-m in September

South Africa's iron ore export shipments in September 2022 stood at 5.18 million tonnes (mnt), up almost 15.6% m-o-m as against 4.48 mnt in August, according to bulk vessel line-up data maintained with SteelMint.

South Africa's iron ore exports increased 6% y-o-y in September to 5.18 mnt from 5.15 mnt in September 2021. Meanwhile, cumulative export volumes remained stable at 43.62 mnt in January-September this year as against 43.45 mnt in the year-ago period. Notably, shipments to China were down 5%.

South Africa's iron ore export shipments to China in September were recorded at 2.94 mn t, down 5% m-o-m compared to 3.09 mn t in August. This decline was a result of the continuous supply of iron ore from Australia and logistics issues.

Prices witnessed a sharp uptrend which resulted in the improvement in global iron ore prices. Spot lump premiums were recorded at $0.1/dmtu towards the beginning of September which improved to $0.19/dmtu by month-end.

The Netherlands emerged as the second-largest importer of iron ore in September. The country imported 618,074 t of iron ore from South Africa, up 68% from 368,100 in August.
Other buyers such as South Korea imported 516,497 t (up 16%) followed by Japan and Germany with 258,400 t and 256,333 t, respectively.

Bulk shipments to the Netherlands and Germany increased by 67.9% and 91.9% m-o-m, respectively. This oversupply is the result of disrupted supplies from Ukraine, which pushed European countries to shift towards South African iron ore.

Kumba records a 20% increase in exports

Exports from the Kumba mines in September were at 3.5 mnt against 2.92 in August. Exports increased by 20% m-o-m. The Assmang mine exported 1.07 mnt of iron ore in September, up by around 23% compared to .87 mnt in August.

The current assessment for imported South African lump (Fe 64%) stands at $100/t CNF Kandla. However, the market outlook is not optimistic for the rest of the year.