Iron-Ore Exports From Australia's Port Hedland Fall

   By Rhiannon Hoyle 
 

SYDNEY--Iron-ore exports leaving Australia's largest bulk-commodity port declined last month on weaker shipments not only to China, but also other key buyers such as Japan.

A total of 33.6 million metric tons of iron ore was shipped through Port Hedland in northwestern Australia in June, down 6.8% from 36.1 million tons a month earlier.

A 720,000-ton, or 2.4%, drop in exports to China helped underpin the slide. China still bought more than 29 million tons of ore shipped from Port Hedland.

China, the world's second-largest economy, accounts for around 60% of global demand for iron-ore, used to create steel for industries including manufacturing and construction. Iron-ore demand has eased, though, as Chinese steelmakers use up stockpiles after producing record volumes of crude steel in recent months, analysts say.

Traders have also speculated Chinese imports of the raw material may fall amid an alleged financing scandal, as banks withhold credit and customs officials tighten checks on incoming shipments.

There were fewer cargoes last month destined for Japan and South Korea as well. Shipments to Japan fell to 1.4 million tons from nearly 2.5 million tons, while exports to South Korea dropped to 2.2 million from nearly 3.0 million the month prior.

Mining companies BHP Billiton Ltd. (BHP), Fortescue Metals Group Ltd. (FMG.AU) and Atlas Iron Ltd. (AGO.AU) use Port Hedland, making it one of the world's largest iron-ore export terminals.

Iron-ore traffic through Port Hedland has risen sharply in recent years as mining companies have raised output in the Pilbara region. Compared with year-earlier volumes, June exports via the port were up 21%, with shipments to China 27% higher.

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