South Africa, a significant player in the bulk material export market, especially in terms of exports of iron ore. Following Australia and Brazil, the country contributes 3rd position among world’s top iron ore exporters.
South Africa exported 4.65 MnT iron ore in Apr’16, down by 29% M-o-M as compared to Mar’16. However, in the first four months on 2016, the country exported 20.4 MnT iron ore, down by 9% in the same consecutive months prior this year. Alongside, the country exported 66.85 MnT iron ore in 2015.
Main reason behind the slump in South Africa’s exports was slow growth and waning demand in the South African export market. In addition, South African currency (Rand) also lost its value against the USD since the start of 2015.
China, the world’s largest consumer of iron ore, imports around 5-6% of its total imports from South Africa. South Africa exports around 65% iron ore to China.
In the first four months of 2016, the country exported 13.6 MnT iron ore to China. However, in Apr’16, exports to China remained at 2.95 MnT, down by 38% as compared to Mar’16.
Indian iron ore importers prefer South African grade iron ore
India prefers importing South African grade iron ore due to its high tumbler index as well as rich ferrous content. Mainly Kumba and Assmang lump had remain preference for Indian iron ore importers.
But, due to volatile global iron ore market, Indian iron ore importers are hesitant and turned silent to import. Since imports have become unviable, Indian imports are preferring domestic material over imported. In FY16, India imported 4.4 MnT iron ore from South Africa.
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