Australia’s iron ore export shipments picked up by 9.5% in May’21 to 74.6 mn t as compared to 68.13 mn t in Apr’21, according to the vessel line-up data maintained with SteelMint. Traditionally, May-June numbers are higher owing to the end of the Australian fiscal year in this month wherein miners raise shipments to meet the guidelines laid down.
In addition to it, because of the cyclone in April, a few shipments cruised in May which fueled exports from Hedland and Walcott ports. The monthly average global iron ore fines (Fe 62%) index increased to $207/t, CFR China, in May’21 against $178.5/t, CFR China, in Apr’21. Stronger prices have supported the export shipments.
Exports to China up 13% m-o-m in May’21
Australia’s iron ore exports to China rose almost 13% to 62.53 mn t in May’21 against 55.56 mn t in the previous month. Meanwhile, the exports from South Korea dropped by 26% m-o-m in May’21
Australia iron ore export shipments: May’21 v/s Apr’21
Qty in mn t
Source: SteelMint Stats, Customs
Provisional data
Shipper-wise performance:
- BHP’s shipments increased by 5% on month to 29.5 mn t in May’21.
- Export shipments from Rio Tinto also increased from 22.78 mn t in Apr’21 to 25.69 mn t in May’21.
- FMG’s shipments increased from 10.15 mn t in Apr’21 to 12.53 mn t in May’21.
Exports from Port Hedland up 8% in May’21: In May’21, Port Hedland exported 47.5 mn t of iron ore against 43.8 mn t in Apr’21, registering an 8% rise m-o-m. Walcott accounted for 15 mn t, followed by Dampier at 10.5 mn t, Esperance at 0.7 mn t, and Geraldton at 0.71 mn t.
Long-term outlook
China probably sees its dependence on Australian iron ore as a strategic weakness. It has been reported that by utilising the most recent innovation in scrap steel recycling, it can cut its dependence on Australian iron mineral fares considerably in the following decade. China imported 71,433 tonnes (t) of ferrous scrap in Apr’21, up by 127% from 31,496 t in Mar’21, as per data recorded with SteelMint.
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