Port Hedland, located in the Pilbara region of Western Australia is the highest tonnage port in Australia. It is the world’s biggest bulk terminal. China, who has been the largest export earner for Australia, has decreased its demand for iron ore after its all-time high demand of 23.3 MnT of iron ore in May, 2013, which was 19.3 MnT in April, 2013. With this demand from China, total exports for Port Hedland had reached up to 27.9 MnT in May, 2013, from 26 MnT in April, 2013. Whereas, in June, 2013, the total exports have come down to 27.7 MnT because of the decreased demand from China.
Port Headland – Australia
Iron ore prices fell 26% in the bear market in May after a 16-month high in February, on concern that the expansion and growth of China will help them maintain the demand as it is the largest buyer of iron ore. Meanwhile the economy of China slowed down after a fall in two gauges of its manufacture. Policy makers were looking forward for a standstill in the prices of real-estate and financial speculation.
According to the National Bureau of Statistics and China Federation of Logistics and Purchasing, the drop of Purchasing Managers’ Index (PMI) to 50.1 is the lowest level in past four months. A separate PMI of 48.2 was released by HSBC Holdings Plc and Markit Economics was the weakest in comparison to the ones from September, 2012.
Chinese government’s goal of 7.5% of growth in projections was cut off to 7.4 % by the Goldman Sachs Group Inc., China International Capital Corp. Barclays Plc and HSBC Holdings Plc in June, 2013. According to a data from The Steel Index, around 62% of iron ore content delivered to the Chinese port of Tianjin gained 0.3% to $116.90 a dry ton on July 1, 2013. Whereas the price in February was higher than the current price and was at $158.90.