Australia’s iron ore export shipments decreased by a marginal 2% q-o-q in Q3CY’21 to 213.87 million tonnes (mn t) as compared to 218.13 mn t in Q2CY’21 on weaker demand in China, according to the vessel line-up data maintained with SteelMint.
Exports to China marginally down
Notably, Australia’s largest iron ore importer, China, recorded a marginal decrease in shipments by 2% to 176.41 mn t in Q3CY’21 against 179.96 mn t in the previous quarter. The average global iron ore fines (Fe 62%) index was recorded at $165.45/tonne (t) CNF China in Q3CY’21, down 40% q-o-q.
Key reasons behind fall in export shipments
- Steel production cuts in China, as the country is keen to reduce carbon emissions.
- Higher iron ore prices are also a huge cost to China’s economy.
Japan was the second-largest importer in Q3CY’21. The country imported 15.41 mn t of iron ore from Australia, down 2% q-o-q as compared to 15.69 mn t in Q2CY’21.
Australia’s iron ore export shipments: Q3CY’21 v/s Q2CY’21
Qty in mn t
Source: SteelMint stats, Customs
Provisional data
Shipper-wise performance
- BHP’s shipments decreased by 11% q-o-q to 80.48 mn t in Q3 CY’21.
- Export shipments from Rio Tinto increased to 78.39 mn t in Q3CY’21 from 72.42 mn t in Q2CY’21.
- FMG’s shipments increased to 34.33 mn t in Q3CY’21 from 32.8 mn t in the previous quarter.
Exports from Port Hedland down 7% q-o-q in Q3CY’21
In Q3CY’21, Port Hedland exported 130.62 mn t of iron ore against 140.68 mn t in Q2, registering a 7% decline q-o-q. Exports from Walcott accounted for 45.52 mn t, followed by Dampier at 32.87 mn t.
Outlook
The decline in domestic steel demand in China due to slower construction activity and the implementation of certain government measures have resulted in lower iron ore prices. Important government policies in China have also had a significant impact on steel demand in the Jul-Sept’21 quarter. According to a report from the Australian Department of Industry, Science, Energy and Resources, iron ore prices are expected to rise to $ 150/t by the end of 2021 before falling to $93/t by the end of 2022.
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