Australia increased iron ore exports by 3% m/m in August

In August, the country shipped 71.7 million tons of iron ore to foreign markets

In August 2023, Australia increased export deliveries of iron ore and pellets by 3% compared to the previous month – up to 71.7 million tons. SteelMint informs about it with the reference to ship cargo data.

Export of iron ore from Australia to China in August amounted to 59.1 million tons, up 3% compared to the previous month. The increase in the supply of Australian raw materials to this country was facilitated by large purchases of low-grade material from Chinese steel mills, as the margins of enterprises decreased. In August 2023, 4.5 million tons of iron ore were shipped to South Korea and Japan, which became the second largest importers.

Rio Tinto shipped the largest volume of iron ore for export during this period – 26.32 million tons, which is 2% lower compared to July. Deliveries by BHP and Fortescue Metals Group amounted to 22.76 mt and 15.56 mt, respectively.

Monthly average prices for Australian iron ore with iron content of 62% in August this year compared to July decreased by $3/ton – to $109/ton CFR China.

Iron ore exports from Australia may remain weak in the third quarter of 2023 due to the rainy season in China, weak steel demand and some macroeconomic factors, SteelMint forecasts.

In 2022, the export of iron ore from Australia increased by 1.5% y/y – up to 884 million tons.

As GMK Center reported earlier, Australia predicts decline in iron ore export revenues in 2023/2024 financial year by 11% – to AUD 110 billion. The previous forecast for this period was 103 billion Australian dollars. It was revised upwards due to higher commodity prices, a lower-than-expected exchange rate and a slight increase in overseas shipments.