Australia's iron ore exports up 2% year-on-year from January to May

Australia's iron

Despite production disruptions at the beginning of the year due to extreme weather conditions and a sluggish global economy, Australia's iron ore exports have increased. This growth has been attributed to increased production capacity in ASEAN countries and improved relations with China.

According to the Australian Department of Industry, Australia exported 74.6 million tons of iron ore in May 2024, an increase of 8% from the previous month.

Iron ore exports have been recovering since hitting a five-year low in February 2024 due to bad weather in January that affected production and logistics. As a result, iron ore exports from January to May increased by 2% year-on-year to a total of 347 million tonnes.

Regional export trends show that raw material exports to the ASEAN region increased sharply during this period due to significant increases in steel production capacity. Indonesia and Vietnam are both increasing their steel production and plan to further expand their production capacity in the future.

India, the world's second largest steel producer and a leading consumer of post-pandemic steel, is also increasing its imports. This is driven by growing demand from domestic infrastructure and manufacturing, coupled with rising logistics costs for domestic raw materials.

Exports to China, Australia's largest iron ore consumer, reached a cumulative total of 291 million tons through May, up 1% year-on-year. The export volume for May alone was 62.8 million tonnes, an increase of 8% on the previous month.

During the same period, exports to South Korea decreased by 4.9% year-on-year to 19.3 million tonnes, while exports to Japan increased by 1.6% year-on-year to 20 million tonnes.

By company, Rio Tinto's shipments were 118.6 million tons, down 4% year-on-year, while BHP's and FMG's shipments were 113 million tons and 80.5 million tons, respectively.

The Australian market is expected to remain volatile in the coming months with the onset of the monsoon season, which could lead to a decline in iron ore exports.

Meanwhile, global iron ore exports increased 6% year over year to 376 million tons in the first quarter of 2024. The top five exporting countries - Australia, Brazil, South Africa, India and Canada - recorded a total of 332 million tons, up 4.4% from 318 million tons in the same period last year.

In the first quarter, the export trends of the major iron ore producing countries were examined: Australia exported 203 million tonnes, down 1% year-on-year; Brazil exported 84 million tonnes, up 12% year-on-year; South Africa exported 16 million tonnes, up 7% year-on-year; India exported 15 million tonnes, up 33% year-on-year; and Canada exported 13 million tonnes, up 23% year-on-year. Ukraine ranked sixth with 9 million tons, an increase of 143% over the previous year.