India helps Port Hedland export a record 37.5 million mt iron ore in October

2014-11-05

Iron ore exports from Western Australia’s Port Hedland hit a record 37.5 million mt in October, helped by a jump in shipments to India, which is becoming a more important market for Australian producers.

Total October exports were slightly above the previous record of 37.4 million mt set in August and were up on September’s 36.3 million mt.

China accounted for 31.7 million mt from the port in October, the second highest volume after August’s record 32.1 million mt, according to Pilbara Ports Authority data released Tuesday.

But it was the record 322,000 mt — roughly the equivalent of two Capesize vessels — of iron ore shipped to India in October that caught the eye, as Australia has typically only shipped small amounts to India on an infrequent basis over the years.

When required, India has largely imported iron ore pellets from South Africa. However, plunging spot iron ore prices have made seaborne cargoes more attractive to Indian steel mills as prices have been closer to domestic levels.

Mining bans in some Indian states have also disrupted captive iron ore supply in some cases.

JSW Steel, and to a lesser extent Tata Steel, have been the most prominent importers, with traders bringing in small amounts.

Atlas Iron, which ships from the common-user Utah Point facility at Port Hedland, said last month that it had shipped five cargoes to India since May. “India sees a compelling argument to buy seaborne iron ore as sources of domestic product are not as competitive,” Atlas Managing Director Ken Brinsden said at the time.

Fortescue Metals Group has also discussed broadening its customer base beyond China, but has not specifically mentioned India.

BHP Billiton is the major exporter from Port Hedland, with Rio Tinto shipping from Cape Lambert and Dampier further south.

In October, 2.2 million mt of iron ore were shipped to Japan, down from 2.8 million mt in September, while 2.3 million mt were exported to South Korea compared with 2.7 million mt last month.

Source from : Platts

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