South Africa Iron Ore Export Shipments to India Plunge 15% in Q2 CY19

As per bulk vessel line up data maintained with SteelMint, South African export shipments of iron ore to India witnessed 15% drop to 0.39 MnT in second quarter CY19 (Q2CY19) as against 0.46 MnT in first quarter CY19. On monthly basis, South African exports to India witnessed fall to 0.05 MnT in June’19 compared to 0.17 MnT a month ago.

According to market sources report to SteelMint, assessment for South African lump to India is heard at around USD 140-141/MT, CNF Kandla, up as against USD 134/MT, CFR Kandla last month. The offers for Imported South African lumps to India picked up sharply amid soaring global prices which resulted in limited bookings.

The spot iron ore fines (Fe 62%) index price picked up to USD 126/MT, CFR China towards early July, the levels were last witnessed in Apr’14. The prices increased amid Rio Tinto’s announcement of drop in its iron ore Pilbara shipments for the year and drop in Brazilian exports.

The Indian imports of iron ore from South Africa fell amid high global prices and availability of comparatively less expensive domestic pellets.

South Africa iron ore exports to China down 23% in Q2 CY19

As per data maintained with SteelMint, South Africa’s total iron ore exports for the quarter Q2 CY19 witnessed at 15.45 MnT as compared to 15.12 MnT in Q1 CY19. The total exports of iron ore recorded at 4.6 MnT in June’19, down 13% compared with 5.27 MnT in last month.

China continued to be largest importer of South African iron ore for the quarter at 7.53 MnT, down sharply 23% against 9.75 MnT in Q1 CY19. Imports by Chinese mills fell for the quarter amid high prices and reduced demand. During second quarter Steel making hub of China-Tangshan announced steel & sintering production cuts of 20-50% until 1st Aug to curb air pollution. Later, the dates for production curbs extended by two months from Aug’19 to Oct’19 paving way for further drop in demand.

South African exports to Netherland picked up for the quarter by 32% to 1.29 MnT compared with last quarter exports at 0.98 MnT.

South Africa Iron Ore Exports

Qty in MnT
Source: SteelMint, Custom
Provisional Data