Iron ore exports to China through Port Hedland in the first four months of 2021 are now well behind the level for the same period of 2020, despite last year seeing a hit from the pandemic and a rebound in Chinese crude steel production so far this year.
Exports through the world’s biggest iron ore port to the world’s biggest market fell 7.5% in the January-February period of this year from the first four (Covid-hit) months of 2020.
That’s despite a 3.6% rise in total iron ore exports from Port Hedland so far in 2021 compared to same period of 2020.
News of the shortfall would normally help maintain upward pressure on iron ore prices, but this time the news came as prices were in the middle of a major shakeout that saw them slide 13% on Friday (See separate story).
Figures today will also update Chinese crude steel production in April – in the three months to March crude steel production was up 15% at 271.04 million tonnes, partly due to the weakness caused by the lockdown and pandemic in the first quarter of 2020 when output totalled 234.5 million tonnes.
But in contrast to the shortfall with China, data from the Pilbara Ports Authority reveals that iron ore shipments to South Korea and Japan are up so far in 2021 from a year ago.
The Port of Port Hedland saw 45.1 million tonnes in iron ore exports in April, all but unchanged from the 45.2 million tonnes in April 2020.
Exports to China in April fell 2.4 million tonnes from a year ago to 36.3 million tonnes, continuing the weaker trend seen so far this year.
This shortfall of 11.6 million tonnes had helped maintain and even push iron ore prices higher up to Thursday (the day the figures were released and when prices started sliding in China).
The price of 62% Fe fines delivered to northern China rose 14% in April – 58% Fe fines were up 10% as Port Hedland shipments fell short.
Iron ore shipments through Port Hedland for the four months to March to all customers totalled 171.66 million tonnes, up from 164.73 million in the same period of 2020.
Exports to China (by BHP, Fortescue, Roy Hill and Atlas Iron) totalled 141.255 million, down from 152.9 million for the first four months of 2020.
Rio Tinto’s exports are not covered by the data – it shipments from two ports further south on the Pilbara coast. Dampier and Cape Lambert.
Shipments to Japan rose sharply from 5.77 million tonnes a year ago to 9.445 million, while exports to South Korea (principally Posco) totalled 15.6 million tonnes, up from 14.15 million tonnes a year ago.
