06/05/14 – Iron ore shipments from Port Hedland to China at record level in April

Bloomberg reported that iron ore exports to China from Australia’s Port Hedland surged to a record in April as stockpiles in the biggest buyer reached an all time high.

Shipments from the world’s largest bulk export terminal totalled 28.9 million tonnes last month compared with 27 million tonnes in March and 19.3 million tonnes a year earlier. Total exports were also a record 34.8 million tonnes last month, up from 34.4 million tonnes in March and 26 million tonnes in April 2013.

According to Beijing Antaike Information Development Company, stockpiles at ports in China rose 1.3% to a record 105.19 million tonnes in the week ended April 25 and have climbed 29% this year. Iron ore entered a bear market in March and has lost 21% this year on prospects for increased global supply. While the global seaborne surplus will climb to 79 million tonnes this year from 1 million tonnes in 2013, lower prices may spur imports.

Australia & New Zealand Banking Group Limited said that iron ore may rebound in coming months on stronger seasonal demand and additional Chinese stimulus.

According to The Steel Index Limited, ore with 62% iron content delivered to the port of Tianjin dropped 2.7% to AUD 105.40 a dry tonne on April 30, the lowest since March 11.

Source – Bloomberg, MinesGuru.com