South Africa: Iron Ore Exports Decline 11% in Q1 CY’18 Amid Derailments

South Africa – world’s 3rd largest iron ore exporter after Australia and Brazil, exported 15.55 MnT in Q1 CY’18, according to trade data released by South African Customs. The exports witnessed 11% decline on quarterly basis as against exports of 17.38 MnT in Q4 CY’17. Kumba Iron Ore – South African subsidiary of Anglo American experienced hurdles as derailments resulted in a 12% decline in export sales for the Mar’18 quarter, compared with the Dec’17 quarter.

However, the Y-o-Y exports depicted stability compared to Q1 CY’17 at 15.8 MnT.

In Mar’18, the South African exports marked at 5.08 MnT , in line with Feb’18 exports at 5.25 MnT.

In Q1 CY’18, an agglomerated (pellets/concentrate) iron ore exports recorded decrease of 15% Q-o-Q to 9.46 MnT, against 11.16 MnT in Q4 CY’17. The Y-o-Y iron ore exports in first quarter CY’18 marked stability against Q1 CY’17 at 9.39 MnT.

The non-agglomerated (fines/lump) iron ore exports in Q1 CY’18 recorded at 6.1 MnT, in line with Q4 CY’17 at 6.22 MnT. However, the Y-o-Y exports witnessed slight decline as compared to Q1 CY’17 exports at 6.4 MnT.

South Africa Iron Ore Exports to China dropped 18% in Q1 CY’18

For first quarter CY’18, China stood the largest importer at 9.79 MnT, down 18% Q-o-Q against 11.88 MnT in Q4 CY’17. The winter heating season accompanied by week long New Year holidays in China resulted in reduced demand.

India stood second largest importer at 1.36 MnT (up 24% Q-o-Q) followed by South Korea at 1.06 MnT (stable on quarterly basis). In Q1 CY’18, the country recorded significant increase in exports to Japan at 1.04 MnT (up more than twice Q-o-Q), Switzerland at 0.5 MnT (nil in previous quarter), Germany at 0.39 MnT( up 50% Q-o-Q) and Italy at 0.39 MnT (up more than twice quarterly basis).

In Mar’18, China, continued to be the largest importer at 3.77 MnT (up 10% M-o-M), contributing 74% of total South African exports for the month. India stood second largest importer at 0.48 MnT followed by Japan at 0.36 MnT (up twice M-o-M) and South Korea at 0.17 MnT (down 64% M-o-M).

India’s imports from South Africa increased to 1.36 MnT in Q1 CY’18

Indian imports recorded increase to 1.36 MnT, up 24% Q-o-Q as against 1.1 MnT in Q4 CY’17. Owing to closure of mining operations at five mines in Odisha, material availability in domestic markets had reduced in Jan’18 and early Feb’18 enhancing interest in imports.
On monthly premises, Indian imports witnessed at 0.48 MnT in Mar’18, up by more than twice M-o-M as against 0.22 MnT in Feb’18.

Quantity in MnT
Source: South Africa Customs
Provisional Data