Iron ore shipments from Western Australia soared to a three-year peak

Iron ore shipments from Western Australia reached a three-year high in the week leading up to June 17th. This increase was primarily driven by record exports from companies such as Fortescue and Roy Hill, as well as strong output from Rio Tinto. The combined capacity of iron ore loaded by the four major Pilbara iron ore firms (Rio Tinto, BHP, Fortescue, and Roy Hill) was 21.54 million dead weight tonnes (dwt), surpassing the previous week's 17.83 million dwt and marking the highest level since June 2020. It's important to note that dwt overestimates actual shipments by approximately 5%.

Overall, the total shipments were 24% higher than the one-year rolling average. Rio Tinto loaded vessels with over 8 million dwt capacity for the first time in 2023, while Fortescue and Roy Hill also achieved record-breaking weeks. BHP exceeded the average by 19%. However, Rio Tinto has faced challenges in maintaining average shipments, with a recent derailment affecting deliveries to its Dampier port, although it is expected to have less impact due to available space for port stockpiles.

In the specified week, Rio Tinto loaded vessels with 8.12 million dwt capacity, BHP increased shipments to 6.89 million dwt, Fortescue achieved a weekly record of 4.69 million dwt, and Roy Hill reached a record of 1.84 million dwt. The majority of shipments, around 83%, were destined for China, an increase from the previous week's 77% and slightly above the average of approximately 82%.