Australia iron ore export shipments up 14% in Q2 CY20

Australia – world’s largest iron ore exporter has recorded iron ore shipment at 230.4 mn t in the second quarter of CY20, up by 14% as against 202.1 mn t in Q1 CY20, according to the vessel line up data maintained with SteelMint.

On a yearly basis, exports shipments in Q2CY20 picked marginally against 222.5 mnt in Q2CY’19.

Why did Australian iron ore exports pick up in Q2 CY20?

Rising Chinese Demand:
 Chinese mills showed rising demand for iron ore over an increase in construction activities in the country and falling port inventories. As per data compiled by SteelHome Consultancy, the iron ore inventory fell from 121.15 mn t towards Mar’20 end to 109.25 mn t towards the end of June 20.

Also, the Chinese imports from Australia picked up on rising Brazilian supply concerns. The concerns over coronavirus have been impacting the Brazilian supplies of iron ore cargoes during the quarter amid rising COVID-19 cases at the iron ore mine in Itabira Brazil, owned by Vale. The Itabira complex produced 35.9 MnT of iron ore in 2019.

High Price Realization:
Monthly average global iron ore fines (Fe 62%) increased significantly for the quarter at $94/t in Q2CY21 as against being $89/t in Q1CY20. The prices during the month of June’20 touched ten months high levels at $107/t which were last witnessed towards the beginning of Aug’19 at around $108/t.

Australia exports to China & monthly average global iron ore fines (Fe 62%) price

Australian exports to China up 19% in Q2 CY’20

China marked the largest importer of Australian iron ore for the quarter at 196.4 mnt, up 19% against 165.5 mnt in Q1CY’20. Korea stood as the second-largest importer for the quarter at 14.4 mnt (up 9% q-o-q) followed by Japan at 11.5 mnt. Australian export shipments to India continue to record nil for the quarter. The export to India was last witnessed on Mar’19 at 185,000 t.

Qty in mn t 
Source: SteelMint Stats and GAC Shipping, 
Provisional Data 

Port Hedland accounted for 62% of exports in Q2 CY’20

In Q2 CY’20, Port Hedland exported 141.9 mnt of iron ore, up 12% against 127.2 mnt in Q1 CY’20. Walcott stood second-largest exporter at 49.2 mnt, followed by Dampier at 33.9 mnt and Esperance at 3 mnt.