Australia’s iron ore (including pellets) export shipments remained largely stable in October 2022 at 74.12 million tonnes (mnt) compared to 74.79 mnt in September, according to vessel line-up data maintained with SteelMint. Exports to China remained stable m-o-m compared to the previous month. Although Japan reduced imports, Australian shipments to Taiwan and Indonesia moved up.
Exports to China stable
Australia’s iron ore export shipments to the largest importer, China, was recorded stabile m-o-m at 63.89 mnt in October as against 63.36 mnt in September. Because margins were narrowing down, Chinese mills bought low-grade iron ore.
South Korea was the second-largest importer from Australia in October. Australia supplied 3.66 mnt of iron ore to South Korea, while 3.3 mnt was shipped to Japan. Global economic demand remains weak. As a result, buying from Japanese mills dropped.
Shipper-wise performance
Rio Tinto’s iron ore shipments were the highest at 27.53 mnt in October, which remained stable against 27.53 mnt in the previous month, followed by BHP and FMG at 22.56 mnt (up 3% m-o-m) and 14.66 mnt (down 10% m-o-m), respectively. Rio Tinto’s iron ore shipments were higher than BHP’s in October.
Port Hedland exports down
Port Hedland exported 44.54 mnt of iron ore, down 2.6% m-o-m compared to 45.73 mnt in September. Exports from Port Walcott were at 14.67 mnt (down 7% m-o-m), followed by Port Dampier at 12.86 mnt (up 11% m-o-m).
Outlook
Spot prices have come under pressure as China’s property sector downturn weighs on demand. Policy in China remains the key driver of prices, particularly China’s COVID-zero policy. The Australian Federal Budget broadly expects iron ore prices to bottom in Q12023 as China’s COVID-zero policy continues to weigh on demand.
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