South Africa: Iron Ore Exports Down 21% in Feb’19

China stood largest importer of South African ore in Feb'19. The exports to China witnessed at 3.50 MnT as against 3.73 MnT a month ago. The availability of domestic pellets and narrowing steel margins lowered Chinese imports for the month. Exports to India, Germany and Mozambique witnessed at 0.28 MnT each. Indian imports from South Africa increased 8% due to price hike by domestic miners.

South Africa pig iron exports surge in Feb'19: South Africa pig iron exports surge by around 16,700 MT in Feb'19 against last month, according to the customs. The nation has exported about 60,353 MT pig iron during Feb'19 against 43,635 MT in Jan'19, surge by 38.3% M-o-M. In the month imports from United States rise sharply by 96% M-o-M & stood at 18,700 MT. Inline Italy second topped the list with 8,934 MT of imports from the nation.

The global export offers of steel grade Pig Iron are assessed at USD 339-341/MT FoB Brazil & USD 359-361/MT FoB India.

South African coal exports increased in Feb'19: The exports have rebounded after witnessing a 19-month low during Jan'19. Preliminary data from customs shows that the country has exported 7.07 MnT coal in Feb'19 against 5.08 MnT in Jan'19, marking a 39% M-o-M growth in the process.

South African coal market had witnessed a slack demand towards the end of the last year, as a consequence of the fall in coal intake from its major buyers-India and Pakistan. However, in order to replenish their stock with South African material, major buyers have picked up their imports during Feb'19.

South African Ferro Alloys Exports were marginally down in Feb'19: South African Ferro Alloys exports were inched down by 3.2% to 2.83 MnT in Feb'19 on M-o-M basis and reduced by 1.2% as compared to previous year for the same period. Since major market for South Africa is China, the exports were down due to the Chinese New year as the pre-stocking of ore for the New Year was already finished and the producers had sufficient stock for using over the holidays.

Manganese Ore, Chrome Ore and Ferro Manganese exports were down by 4.6%, 5.9% and 19% respectively as compared to Jan'19. However, Silico Manganese Exports were marginally up by 4% as compared to the previous month.

South Africa ferrous scrap exports marginally down in Feb'19: As per recently released customs data, South Africa exported 30,449 MT ferrous scrap in Feb'19, marginally down 2% M-o-M against 31,046 MT in Jan'19. On yearly premises, scrap exports increased by 8% Y-o-Y as against 28,180 MT during the same month last year.

The largest importer, India occupied the highest 56% share in total South African ferrous scrap exports in Feb'19. India imported 17,044 MT in Feb'19, down 25% M-o-M against 22,778 MT ferrous scrap in Jan'19. Followed by other prominent importers were Bangladesh (5,801 MT, up 16%), Pakistan (5,422 MT, up 125%) and Indonesia (1,005 MT) occupying 19%, 18% and 3% share in Feb'19.

Amid fall in Indian imports on quality concerns and issues related to exports from South Africa, a sharp jump in Pig Iron exports and steady demand for imported scrap from Pakistan and Bangladesh could have kept exports supported in Feb'19.