South Africa’s iron ore export shipments in May’21 stood at 5 million tonnes(mn t), up by 19% as against 4.18 mn t in Apr’21, according to bulk vessel line-up data maintained with SteelMint.
China’s environmental policies supported lumps demand this year. Tangshan’s production curbs constrained sintering operations the most, forcing mills to use more lumps and pellets than the previous years.
South Africa’s iron ore export shipments to China in May’21 were recorded at 2.69 mn t, as compared to 1.85 mn t in Apr’21. Japan was the second-largest importer at 0.51 mn t followed by the Netherlands at 0.38 mn t.
Nil export shipments to India
Iron ore shipments from South Africa to India continued to remain nil in May’21 too. Imports were last seen at 144,292 tonnes (t) in Dec’20.
The current assessment for imported South African lumps (Fe 64%) stands at $250/t as on 9 June’21, CNF Kandla. However, with rising global iron ore prices, imported lump offers remain unviable at the current levels. Indian mills continue to prefer domestic ore and pellets on cost-effectiveness. The monthly average global iron ore fines (Fe 62%) index increased to $206.5/t, CFR China in May’21 against $178.5/t, CFR China in Apr’21. Prices touched $233.1/t, CNF China as assessed on 12 May’21,the highest since CY’09, as per data maintained with SteelMint.
South African iron ore export shipments line-up
Qty in t
Source: SteelMint, Customs
provisional data
Outlook
High global iron ore prices may continue to keep imports of South African lumps to India on the lower side as domestic substitutes are more preferable.
Leave a Reply