Iron-ore shipments from the Port Hedland export hub declined on-month in April, with fewer cargoes leaving for China, the world’s biggest consumer of the raw material.Exports fell as weak prices for the steelmaking commodity led Atlas Iron Ltd to stop mining at some of its operations.
Nearly 35.4 million metric tons of the steelmaking ingredient left Australia through Port Hedland during the month, down 3.4 per cent from 36.6 million tons in March, according to data from the local port authority released Monday.
The drop in shipments to China underpinned the fall, declining 3.6 per cent on month to 30.1 million tons. The world’s second-largest economy accounts for about 60 per cent of global demand for iron ore, used to create steel.
Shipments to Japan also declined, although exports to South Korea rose on the month earlier.
Atlas shuttered operations in the Pilbara last month after iron-ore prices fell to a decade low. Earlier this month, though, the company said it would be able to restart one mine and keep operating another slated for closure after cutting costs.
Atlas Iron uses Port Hedland alongside other mining companies including BHP Billiton Ltd, the world’s third-largest iron-ore miner, and Fortescue Metals Group Ltd.
Iron-ore traffic through the hub has risen in recent years as mining companies have raised output in Pilbara, with operations planned when prices were booming. Exports in April were up 1.6 per cent compared with year-earlier volumes, with shipments destined for China 4.2 per cent higher.
