South Africa’s iron ore export shipments in Sept’21 stood at 5.2 million tonnes (mn t), down by almost 4% as against 5.41 mn t seen in Aug’21, according to bulk vessel line-up data maintained with SteelMint.
Shipments to China up 6%
South Africa’s iron ore export shipments to China in Sept’21 were recorded at 3.5 mn t, up 6% m-o-m as compared to 3.31 mn t seen in Aug’21. The expectation of steel production cuts in China in H2CY’21 led to increased demand for high-quality iron ore, including lumps, which could be the reason behind increased imports.
However, prices exhibited a sharp downtrend on subdued demand outlook which resulted in decline in global iron ore prices. Spot lump premiums were recorded at $0.44/dmtu towards the beginning of Aug’21 which fell to $0.09/dmtu by month-end.
Korea was the second-largest importer of iron ore in Sept’21. The country imported 0.59 mn t of iron ore from South Africa, up 118% as compared to 0.27 mn t in Aug’21.
Indian mills book lumps from South Africa
South India-based steel mills have booked two vessels of iron ore lumps from South Africa, towards the end of Sept’21. The vessels booked were for grade Fe64.5% iron ore, which fetched a price of $113-114/t CIF Krishnapatnam. With falling global iron ore prices, iron ore lump import offers from South Africa have decreased, resulting in the resumption of bookings from Indian mills.
The current assessment for imported South African lumps (Fe 64%) stands at $125/t as on 8 Oct’21, CNF Kandla.
South African iron ore export shipments line-up
Figs in tonne,
Provisional data
Source: SteelMint
Leave a Reply