South Africa, a significant player in the bulk material export market, especially in terms of exports of iron ore. Following Australia and Brazil, the country contributes 3rd position among world’s top iron ore exporters.
South Africa exported around 15.8 MnT iron ore first three months of 2016. Exports are down by 3.6% Y-o-Y basis as it was 16.4 MnT in the same consecutive months prior this year. However, the country exported 66.85 MnT iron ore in 2015.
In Mar’16, the country exported around 6.5 MnT iron ore, up by around 58% as it was 4.1 MnT in Feb’16.
China- largest iron ore export destination for South Africa
South Africa exports around 65% iron ore to China. China, being the largest consumer of iron ore, imports around 5% of iron ore from South Africa. The country exported around 43.6 MnT iron ore to China in 2015. However, in first three months of 2016, the country exported around 10.7 MnT iron ore to China which is almost similar to exports in the same consecutive months last year.
In Mar’16, the country exported around 4.7 MnT iron ore to China, up by 74% as compared to Feb’16.
South African Iron Ore- Preference of Indian importers
South African iron ore mainly from Kumba & Assmang mines has remained has a preference for Indian importers. Due to high tumbler index as well as rich ferrous content, Indian importers prefer importing South African grade iron ore.
As per customs data maintained by SteelMint, South Africa exported around 4.23 MnT iron ore to India in 2015 and within first three months of 2016, the country exported 1.3 MnT iron ore to India. In Mar’16, the country exported around 0.27 MnT to India.
Currently, Indian iron ore importers are resistant to import iron ore from South Africa due to higher global iron ore prices.
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