Iron ore exports from Australian port surges to record high

MELBOURNE (Scrap Monster): The monthly export data released by the Australian Port of Hedland authorities indicate that iron ore exports surged to record high during the month of March this year. The total shipments rose nearly 8% when matched with the previous month. The iron ore shipments to China were up by 12% during the month.

According to port data, iron ore shipments totaled 39.53 million metric tons during March 2016, higher by 7.97% when compared with the exports of 36.63 million metric tons recorded during February this year. The exports were higher when matched with 36.61 million metric tons of export during the same month a year earlier. The March 2016 exports has touched a new record, beating the earlier high of 39.4 million metric tons recorded in September last year.

The iron ore shipments to China jumped higher by 12% during the month. The exports totaled 32.59 million metric tons during March this year, as compared with the exports of 29.14 million metric tons during February. The surge is shipments to China during the month are primarily on account of the temporary halt in shipments during the prior month due to week-long Chinese Lunar New Year holidays.

Port Hedland is the world’s biggest bulk-export terminal which handles cargoes from miners including BHP Billiton and entrant Roy Hill Holdings. The port is located in Australia's remote northwest Pilbara region, which supplies more than half of the entire world's iron ore traded by sea.

Meantime, iron ore prices look poised to extend their rally. The steel making commodity has been one of the top performing commodities of 2016 so far. The iron ore prices have appreciated by 26% since the start of the year. The sustainability of iron ore price rally depends heavily on improvement in Chinese economic conditions. Rapid growth in Chinese economy is bound to improve demand for iron ore, which could then take iron ore prices back to its glory days.