By Rhiannon Hoyle
SYDNEY--Iron-ore exports leaving Australia's largest
bulk-commodity port declined last month on weaker shipments to not
only China, but other key buyers like Japan.
A total of 33.6 million metric tons of the steelmaking
ingredient was shipped through Port Hedland in Australia's
northwest in June, down 6.8% from 36.1 million tons a month
earlier.
A 720,000-ton, or 2.4%, drop in exports to steel-hungry China
helped underpin the slide. China still bought more than 29 million
tons of the ore shipped from Port Hedland.
The world's second-largest economy accounts for around 60% of
global demand for iron-ore, used to create steel for industries
like manufacturing and construction. Iron-ore demand has eased,
though, as Chinese steelmakers draw down existing inventories after
hitting record crude steel output rates 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 like 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 at Pilbara.
Compared with year-earlier volumes, exports via the port in June
were up 21%, with shipments destined for China 27% higher.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com