South Africa’s iron ore export shipments in Q1 CY’21 stood at 14.11 mn t, against 14.99 mn t in Q4 CY’20, according to bulk vessel line up data maintained with SteelMint. On a monthly basis, however, exports were recorded at 5.27 mn t in Mar’21 against 4.05 mn t in Feb’21.
Nil export shipments to India
Iron ore shipments to India remained nil for the Q1 CY’21. Imports in last quarter were at 144,292 t.
The current assessment for imported South African lump (Fe 64%) stands at around $201/t, CNF Kandla. However, prices continue to remain unviable at current levels and Indian mills continue to prefer domestic ore & pellets due to cost-effectiveness. Gujarat-based mills have shifted to ore from NMDC Odisha and Karnataka along with pellets from imported ore. The average Q1 CY’21 prices for South African lumps (Fe 64%) recorded at $193/t, CNF Kandla up as against last quarter average price at $143/t, CNF Kandla.
Shipments to China decreased by 11% in Q1 CY’21
South Africa’s iron ore export shipments to China for Q1 CY’21 were recorded at 7.9 mn t, as compared to 8.88 mn t in the previous quarter. The Netherlands was the second-largest importer at 2.2 mn t followed by Japan at 1.07 mn t.
South Africa iron ore export shipments line up
Qty in mn t
Source: SteelMint, Custom
Provisional Data
Outlook –With high global iron ore fines prices, Indian imports of South African lumps continue to remain unviable. The average iron ore Fe 62% price as assessed at $167/t, CNF China in Q1 CY’21, as against $134/t, CNF China in Q4 CY’20. The increase in prices and the preference for domestic iron ore may continue to keep Indian imports on the lower side.
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