China Iron Ore Imports Lift Global Iron Ore Trade in 2023

The dry bulk market benefited from an increase in Chinese iron ore imports, most notably an increase in ton-mile demand. In its latest weekly report, shipbroker Banchero Costa said that “2023 was a very positive year for global iron ore trade. In Jan-Dec 2023, global loadings of iron ore increased by +4.9% y-o-y to 1,628.4 mln tonnes, from 1,552.2 in the same period of 2022, based on AXS Marine vessel tracking data. It is also just above the 1,594.3 mln tonnes loaded in Jan-Dec 2021, which was the last all-time record. Exports from Australia increased by +0.7% y-o-y in Jan-Dec 2023 to 913.2 mln tonnes, easily a new all-time record high. From Brazil, exports surged by +7.9% y-o-y in Jan-Dec 2023 to 362.2 mln t. From Canada there was a +6.9% y-oy increase to 58.9 mln tonnes. India also saw an increase of +175.7% y-o-y to 43.3 mln tonnes. From South Africa volumes declined -1.1% y-o-y at 52.0 mln t in 2023.

According to the shipbroker, “demand has been poor everywhere except in Mainland China. Iron ore imports into Japan declined by -5.4% y-o-y in Jan-Dec 2023 to 94.9 mln t. Volumes into South Korea were down by -1.8% y-o-y to 70.7 mln t. To Malaysia volumes were also down by -10.5% y-o-y to 20.5 mln t. Imports into the European Union declined sharply by -9.1% y-o-y in Jan-Dec 2023 to 71.8 mln tonnes, the lowest since 2020. To Bahrain, volumes were up +7.5% y-o-y to 14.1 mln t, but to Oman imports declined by -6.0% y-o-y to 12.3 mln t. To Saudi Arabia imports increased +4.2% y-o-y to 9.2 mln t”.

“Mainland China is by far the largest importer of iron ore in the world. China now accounts for 74.2% of global iron ore imports. Imports into China have increased +4.9% y-o-y in Jan-Dec 2023 to 1,200.1 mln tonnes, which is a new all-time record. The positive growth in 2023 follows two disappointing years, with iron ore imports into the country declining by -3.8% y-o-y in 2021, followed by a further -0.1% y-o-y decline in 2022. The vast majority (66%) of iron ore volumes into China in Jan-Dec 2023 were loaded on Capesizes (130,000- 220,000 dwt), with a further 21% carried on VLOCs (over 220,000 dwt), whilst just 5% was carried on Post-Panamaxes, 5% on Panamaxes, and 3% on Supramaxes. The main iron ore import terminals in Mainland China are: Caofeidian (121.0 mln t loaded in Jan-Dec 2023), Ningbo/Zhoushan (113.2 mln t), Rizhao (96.9 mln t), Tangshan/Jingtang (95.2 mln t), Tianjin (81.8 mln t), Lanshan (81.5 mln t), Lianyungang (68.0 mln t), Dongjiakou (62.5 mln t), Zhanjiang (62.5 mln t), Beilun (51.6 mln t), Fangcheng (51.1 mln t), Huanghua (49.3 mln t), Qingdao (45.7 mln t), Majishan (43.0 mln t)”, the shipbroker said.

“In terms of sources for China’s iron ore imports, distances have improving last year. Australia still remains by far the top source of iron ore for China, with a 64% share in Jan-Dec 2023. Iron ore imports from Australia to China in Jan-Dec 2023 remained essentially flat -0.0% y-o-y at 770.1 mln tonnes, from 770.4 mln t in JanDec 2022. The top loading port in Australia for iron ore cargoes to China was Port Hedland (463.6 mln t in 2023), followed by Dampier (134.0 mln t) and Port Walcott (124.7 mln t). Brazil remains in second spot with a 21% share in Jan-Dec 2023. Imports to China from Brazil increased by +7.5% y-o-y to 251.4 mln tonnes in Jan-Dec 2023, from 234.0 mln t in Jan-Dec 2022. The top loading port in Brazil for iron ore cargoes to China was Ponta da Madeira (115.4 mln t in 2023), followed by Sepetiba (64.1 mln t) and Tubarao (34.9 mln t). Volumes from South Africa declined by -3.2% y-o-y to 30.2 mln t in JanDec 2023. From India volumes surged by +252.8% y-o-y to 37.2 mln t. From Canada volumes increased by +29.3% y-o-y to 17.3 mln t”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide