Australia: Iron ore export shipments fall 9% m-o-m in Apr'24
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Australia's iron ore and pellet export shipments dropped by 9% m-o-m to 69.3 million tonnes (mnt) in April 2024 compared to 76.3 mnt in March, as per vessel line-up data maintained with BigMint. However, shipments rose by 9% y-o-y in April, 2024 compared to 63.6 mnt in April, 2023.
According to reports, port maintenance, coupled with the impact of typhoons on Australian ports, disrupted operations and resulted the fall in iron ore shipments. However, Chinese iron ore inventory at ports recorded a two-year high at 145 mnt towards the end of last month against 142 mnt levels seen in end-March, 2024.
Exports to China down 11%
Australia's iron ore exports to the world's largest importer, China, were recorded at 57.9 mnt in April, decreasing by 11% m-o-m against 64.8 mnt in March.
South Korea and Japan were the other major importers from Australia in April. The latter supplied 4.4 mnt to South Korea, marginally up by 2% m-o-m, while 3.2 mnt was shipped to Japan, down 22%.
Steel sales in China have also been decent lately, with some resumption in steel production seen despite portside inventory levels remaining high.
Shipper-wise performance
BHP's iron ore shipments were the highest at 23.4 mnt in April, remaining largely stable m-o-m. Rio Tinto and FMG shipped 20.8 mnt and 18.3 mnt, respectively.
Port-wise exports
Port Hedland exported 46.8 mnt of iron ore in April, dipping 3% m-o-m compared to 48.2 mnt in March followed by Port Dampier at 11.3 mnt, down by 13% m-o-m. Meanwhile, Port Walcott fell by 31% m-o-m to 9.5 mnt.
Price trends
Monthly average Australian Fe62% iron ore prices inched up by $1/t m-o-m to $111/t CFR China against $110/t a month ago.
Outlook
It is expected that the market will bounce back after the Chinese Labour Day holidays as participants are expecting improvement in prices as well as demand on improving margins in the coming days.