Iron ore exports to China through Port Hedland, the world’s biggest port, fell more than 6% in the six months to June thanks to a sharp slide in final three months of the half.
That was despite a steady 270.74 million tonnes shipped through the port in the June half compared with 270.84 million in the Covid-hit first six months of 2020.
The shortfall in exports to China was covered by the higher shipments to steel mills in Japan and South Korea.
Port Hedland is used by major shippers led by BHP, Fortescue Metals, Roy Hill, Mineral Deposits and a couple of smaller companies.
Data from the Pilbara Ports Authority showed that while Port Hedland exported 50.37million tonnes of iron ore last month, a 4.8% rise month from May, shipments, however, were down by 2% from 51.79 million tonnes in June 2020.
The steady 270 million tonnes shipped through Port Hedland in the six months to June had an estimated value of more than $US59 billion (more than $A75 billion).
June’s export total of 42.019 million tonnes to China might have been the highest for the first six months of this year but was down more than 10%, or 4 million tonnes from the 46.18 million tonnes in June 2020 (which was the highest monthly total for the first half of last year).
Shipments to China in the June quarter fell nearly 13.4 million tonnes to 114.5 million tonnes from just over 128 million tonnes in the same quarter of last year.
The shortfall to China was covered by a rise in exports to Japan and South Korea in the six months to June which is the second biggest customer for iron ore from Port Hedland.
Japanese steel mills took 14.607 million tonnes in the June half, up from 12.31 million tonnes in the same period of 2020.
Exports to South Korea rose to 23.29 million tonnes from just under 22 million tonnes in the June half year.
Weak performances dogged the Pilbara based miners in the June quarter.
Besides the slide from 2020 from Port Hedland, Rio Tinto, which ships through Dampier and Cape Lambert, reported bad weather hit its June production and sales performance.
Rio shipped 76.3 million tonnes in the three months to June 30, down from 86.7 million tonnes a year ago. That’s to China, as well as Japan, South Korea and Taiwan.
The lower shipments to China for the half year can’t be blamed on factors such as poor weather, labour shortages or mechanical problems (as Rio Tinto attempted to do to explain its weak performance in the six months to June last Friday).
Higher exports to other markets such as Japan and South Korea do not support those excuses.
Chinese iron ore imports fell in the June quarter but rose over the six months.
Iron ore imports continued weakening in June, falling for a third straight month to their lowest in 13 months, according to China’s General Administration of Customs.
The data showed China imported 89.42 million tonnes of iron ore in June down 0.4% from May and down 12.1% from June a year earlier.
In the first half of 2021, China imported 560.7 million tonnes of ore, 2.6% higher than the same period of 2020 which was a sharp slowdown on the 6% growth rate in the five months to May.
BHP’s June quarter and 2020-21 production and sales data are out today and Fortescue’s figures are issued next week.
