Ship composition data indicates that Australia’s shipments for exports of iron ore or pellets increased by 8% year over year to reach 76.3 million tonnes in March 2024.
In February 2024, there was a 33% increase in the foreign supply of raw materials.
Heavy rains in Australia impacted iron ore shipments, and major suppliers were attempting to maximise volumes in March before the end of the cyclone season.
Australia’s March iron ore exports to China reached 48.2 million tonnes, a 34% m/m increase. South Korea and Japan were the two other largest importers, receiving 4.3 million tonnes (+43% m/m) and 4.1 million tonnes (+22%) of supplies, respectively.
Rio Tinto was the company that shipped the most iron ore last month, with 26.8 million tonnes (+38% from February 2024). BHP or FMG shipped 23.5 million and 18.2 million tonnes, respectively.
In March of this year, the average monthly price of 62% iron-content Australian iron ore dropped to $110/t CFR China from $126/t the month before.
March saw an 11-month low for iron ore prices as the market’s supply of raw materials outpaced demand. By the end of the month, the price of iron ore dropped by 14.4% on the Singapore Exchange and 15.2% on the Dalian Exchange, from $121.1/t and 113.3/t, respectively.
The world’s largest consumer, China, is experiencing a decline in demand, which is the reason for the market’s downward trend. Steel mills are having to halt production because they are losing money.