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.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com