South Africa’s iron ore export shipments in Aug’21 stood at 5.41 million tonnes (mn t), up by 16% as against 4.66 mn t seen in Jul’21, according to bulk vessel line-up data maintained with SteelMint.
Shipments to China pick up 54%
South Africa’s iron ore export shipments to China in Aug’21 were recorded at 3.31 mn t, up 54% m-o-m as compared to 2.15 mn t seen in Jul’21. Expectations of steel production cuts in China in H2CY’21 had increased the demand for high-quality iron ore, including lumps, which could be the reason behind increased imports. However, prices exhibited a sharp downtrend on subdued demand outlook which resulted in decline in global iron ore prices.
Spot lump premiums were recorded at $0.56/dmtu towards the beginning of July’21 which fell to $0.5/dmtu by month-end.
The Netherlands continued to be the second-largest importer of iron ore in Aug’21. The country imported 0.89 mn t of iron ore from South Africa, higher by 32% as compared to 0.68 mn t in Jul’21.
Export shipments to India continue to remain nil
Iron ore shipments from South Africa to India continued to remain nil in Aug’21 too. Imports were last seen at 144,292 t in Dec’20.
The current assessment for imported South African lumps (Fe 64%) stands at $155/t as on 3 Sept’21, CNF Kandla. However, with falling global iron ore prices, imported lumps 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 stood at $161.3/t, CFR China in Aug’21 against $214.04/t in Jul’21.
South African iron ore export shipments line-up
Fig in t, Provisional data
Source: SteelMint
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