Strong June end for Western Australian iron ore exports

: Metals
21/07/06

A strong end to BHP's financial year underpinned a 5pc above-average export performance by the four largest producers in the Pilbara region of Western Australia (WA) in the week to 3 July, despite ongoing underperformance at Rio Tinto's 45mn t/yr East Intercourse Island (EII) berths.

The four largest WA producers — Rio Tinto, BHP, Fortescue Metals and Roy Hill — loaded vessels with a combined 17.97mn deadweight tonnes (dwt) of capacity in the latest week, which was 5pc above average. Shipments were in line with the previous week, with gains by BHP and Rio Tinto offset by an easing in exports by Fortescue Metals.

Rio Tinto loaded vessels with 6.76mn dwt capacity in the week to 3 July, up from 6.05mn dwt the previous week and the highest level since mid-May when it closed its EII berths for maintenance. Rio restarted loading at EII on 26 June with a vessel departing on 28 June. Only four vessels have departed EII since the maintenance, implying that the berth is still operating below-usual rates. Rio's total shipments were 2pc above its annual rolling average of 6.62mn dwt/week, as it used the latent capacity in its rail and port systems to push up exports out of its other berths at Dampier and through Cape Lambert.

BHP shipped 12pc above average in the most recent week at 6.52mn dwt, up from 6.48mn dwt the previous week, as it pushed production ahead of the end of its financial year on 30 June. Initial estimates suggest that the firm shipped around 285mn t in 2020-21, which is at the top of its guidance of 276mn-286mn t.

Fortescue's shipments eased in the week to 3 July, after a strong run in May-June, to 3.3mn dwt from 3.96mn dwt the previous week and 7pc below its weekly average of 3.55mn dwt. Fortescue exported around 47.9mn t in April-June, according to initial estimates, which would beat the record quarter of 47.3mn t achieved a year earlier and put it on track to export around 181mn t in the year to 30 June, near the top of its guidance of 178mn-182mn t.

Roy Hill shipped 1.39mn dwt, down from 1.42mn dwt in the week to 26 June and 22pc above its rolling average of 1.15mn dwt.

The deadweight tonnage is the maximum capacity of the vessel and overestimates actual shipments by around 5pc.

China was listed as the destination for 76pc of shipments in the latest week, up from 75pc a week earlier. After including shipments with unconfirmed destinations — most of which are probably headed to China — the percentage was 80pc, in line with a week earlier and below the average of around 82pc.

Argus assessed the ICX iron ore price at $220.35/dmt cfr Qingdao on a 62pc Fe basis yesterday, up from $209.30/dmt on 1 June but down from a high of $235.55/dmt on 12 May. Yesterday's assessment increased from $167.45/t on 1 April and $159.90/t on 31 December.

By Jo Clarke

WA iron ore loadings mn dwt

Iron ore prices $/t

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24/12/20

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Viewpoint: PGM demand from hydrogen sector to rise

24/12/20

Viewpoint: PGM demand from hydrogen sector to rise

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US Congress passes waterways bill

24/12/19

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Q&A: Xcelsior aims to derisk minor metals investment

24/12/19

Q&A: Xcelsior aims to derisk minor metals investment

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EU HRC imports drop a quarter on safeguards, AD probe

24/12/19

EU HRC imports drop a quarter on safeguards, AD probe

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