South Africa: Iron Ore Export Shipments Fall 14% in Sep’19

As per bulk vessel line up data maintained with SteelMint, South African export shipments of iron ore in Sep’19 witnessed at 4.47 MnT, down 14% as against 5.21 MnT in Aug’19. Export shipments to India continued to remain nil for third consecutive month in Sep’19. The drop is attributed to availability of comparatively less expensive domestic pellets. Major buyers from west India and south India have shifted to pellets. Jindal SAW pellet prices are assessed at INR 8,050/MT, delivered Kandla.

According to market sources report to SteelMint, assessment for South African lump to India is heard at around USD 100-105/MT, CNF Kandla, however bids from western India remains at around USD 90-95/MT, CNF China. The offers for imported South African lumps to India have dropped over the time amid fall in global iron ore prices but, booking continue to remain on lower side. Also, as per market participants, South African Saldanha port will undergo maintenance shut in Oct’19 and hence, booking are expected for Nov’19 deliveries post resumption at Saldanha port.

Exports to China down 15% amid reduced demand
As per the data maintained with SteelMint, South Africa’s total iron ore export shipments to China for the month witnessed at 2.50 MnT as compared to 2.96 MnT in Aug’19. The exports dropped to China amid reduced demand. Chinese production curbs were extended by two months from Aug’19 to Oct’19. Also, towards Sep’19 Tangshan government imposed further production curbs in the city.

South African exports to Spain picked up to 0.16 MnT (up two folds) followed by Denmark and Italy 0.13 and 0.08 MnT respectively.