Australia iron ore export shipments up moderately in May’20

Australia – world’s largest iron ore exporter has recorded iron ore shipment at 75.29 mnt for May’20, up slightly against 74.61 mnt in Apr’20, according to the vessel line up data maintained with SteelMint.

The Chinese mills resumed production post lockdown and witnessed recovery in construction activities. However, amid lower steel margins Chinese mills preference for lower grade ore stood on the higher side while imports of Australian higher grade ore remained on lower side. Also, the rise in Chinese demand accompanied by global material shortage caused by Brazilian miners was offset by the rising prices in May’20. The spot iron ore fines (Fe 62%) prices picked up sharply in the month of May’20 to over $100/t, CFR China. Also the most-traded September contract of iron ore on the Dalian Commodity Exchange surged 23.3% last month.

On a yearly basis, exports in May’20 dropped against 76.97 mnt in May’19.

Monthly average iron ore prices picked up 11% in May’20

Monthly average global iron ore fines (Fe 62%) increased significantly by 11% to $ 94/t, CFR China in May’20 against that in last month at $ 84/t, CFR China.

Australian exports to China up marginally in May’20

China marked the largest importer of Australian iron ore for the month at 64.42 mnt, up 3% against 62.38 mnt in Apr’20. Japan stood as the second-largest importer for the month at 4.03 mnt (down 9% M-o-M) followed by Korea at 3.85 mnt.

Australian exports to India continue to record nil for the month of May’20. 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 May’20

In Apr’20, Port Hedland exported 46.88 mnt of iron ore, up 6% against 44.35 mnt in Apr’20. Walcott stood second-largest exporter at 15.92 mnt, followed by Dampier at 10.72 mnt and Esperance at 1.05 mnt.