China – largest importer of Australian iron ore has consistently reduced its purchases over preference for high-grade Brazilian ore.
Australia – world’s largest iron ore exporter has recorded decrease in its month export shipments in Jul’18. The export quantity fell to a 5-month low at 66.67 MnT in July, lowest since Feb’18 which was 65.51 MnT then. Australian iron ore exports witnessed at 66.7MnT, down by 12% against 75.4 MnT in Jun’18. On yearly basis, exports depicted a marginal decline against 67.12 MnT in Jul’17.
However, in CY’18 (Jan-Jul’18) Australia’s iron ore export shipments witnessed an increase of 5% to 498.15 MnT compared to 475.55 MnT in the same period last year.
China’s iron ore imports from Australia hit lowest so far in CY18 – China continued to record the highest imports from Australia in Jul’18 with 80% of the total Australian export share. China’s imports from Australia depicted fall of 15% M-o-M to 53.03MnT in Jul’18 as against 62.1 MnT in Jun’18. Japan at 5.8 MnT stood the second largest importer of Australian iron ore in Jul’18 in line with Jun’18.
China- largest destination (contributing 80- 85%) of Australian iron ore exports. Hence, a change in Chinese market affects Australian exports. Chinese’s government strict environmental norms rendering shift towards high-grade iron ore from Brazil (Carajas fines) for blending purpose. Brazilian Sinter Feed Low Alumina iron ore is more cost-effective than using PB (Pilbara) fines only. This has resulted in a decline in China’s iron ore imports volumes from Australia.
The disparity in prices of Australian and Brazilian fines – This has resulted in a widening of price gap between Australian fines and Brazilian fines. As per reports, the price of high grade (Fe 65%) iron ore fines may hit USD 100/MT, CFR China against the price of Australian fines (Fe 62%) which is around USD 70/MT, CFR.
India Iron ore imports continue to increase by 26% in Jul’18 – Indian iron ore imports continue to increased in the month of Jul’18 by 26% to 0.7 MnT as against 0.56 MnT in Jun’18.
JSW Steel is a major importer of iron ore from Australia. As per customs data maintained with SteelMint, JSW Steel imported 1.27 MnT of iron ore in Jul’18 and remained the largest importer contributing 82% share of total Indian iron ore imports for the month. The imports depicted a significant rise on monthly basis to more than twice as against 0.47 MnT in June’18.
Country-Wise Australian Iron ore Export in Jul’18 vs. Jun’18
| Country | Jul’18 | Jun’18 | M-o-M (%) |
| China | 53.03 | 62.1 | -15% |
| Japan | 5.84 | 5.82 | 0.34% |
| Korea | 5.37 | 4.15 | 29% |
| Taiwan | 1.38 | 1.44 | -4% |
| India | 0.7 | 0.56 | 25% |
| Indonesia | 0.18 | 0.38 | -53% |
| Vietnam | 0.18 | 0.85 | -79% |
| Hong Kong | – | 0.06 | -100% |
| Grand Total | 66.7 | 75.4 | -12% |
Qty in MnT
Source: SteelMint Stats and GAC Shipping,
Provisional Data
Port Headland iron ore exports fall to 5-month low in July
In Jul’18, Port Hedland marked the largest exporting port at 39.9 MnT, down 14% M-o-M as compared to 46.67 MnT inJun’18. The iron ore export figure from Port Hedland is lowest in last five months. Other major ports were Walcott at 15.33MnT (down 3% M-o-M) and Dampier at 10.67MnT (down 6% M-o-M).
Port-wise Export Jul’18 vs. Jun’18
| Port | Jul’18 | Jun18 | M-o-M (%) |
| Hedland | 39.90 | 46.67 | -14% |
| Walcott | 15.33 | 15.86 | -3% |
| Dampier | 10.67 | 11.35 | -6% |
| Geraldton | 0.77 | 0.84 | -8% |
| Esperance | – | 0.65 | -100% |
| Grand Total | 66.7 | 75.4 | -12% |
Qty in MnT
Source: SteelMint Stats and GAC Shipping,
Provisional Data
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