Port Hedland iron ore shipments to China rise in May

Iron ore shipments to China from Port Hedland in west Australia increased by 9.3pc on the month and by 2.27pc on the year in May to 37.83mn t.

Major iron ore producers Fortescue Metals, BHP and Roy Hill ship iron ore from Port Hedland. Total iron ore shipments from the port increased by 10pc on the month to 46.2mn t in May.

China's iron ore import arrivals were down by 11pc from a year earlier to 83.75mn t in May. It typically takes around 10-15 days for shipments to reach Chinese ports from west Australia's Pilbara region, so some of the shipments from Port Hedland may reach China this month and be reflected in China's June import data.

Higher shipments from Port Hedland in May are in line with market sentiment in China that iron ore arrivals and portside stocks may increase in June, easing supply concerns and pressuring iron ore prices amid slower demand from steel mills.

But there have been contrasting reports that maintenance activities at BHP and Rio Tinto's Australian facilities may slow iron ore shipments from these producers in June and July.

Portside stocks of imported iron ore fell in the first week of June in China, said market participants, adding to a 7.7pc drop in stocks in May.

Tight supply of mainstream grades has supported prices at quite high levels of around $90/dry metric tonne.