Ships waiting to be loaded with iron ore are seen at the Fortescue loading dock located at Port Hedland, in the Pilbara region of Western Australia 

Iron ore shipments from Australia’s largest bulk-export terminal swelled to a record in June, in a sign of ample seaborne supplies just as concerns mount about the outlook for Chinese demand.

Exports from Port Hedland increased to 54.6 million tons last month, eclipsing the peak set a year ago, according to Pilbara Ports Authority data. Year-to-date cargoes expanded to about 288 million tons, just topping the previous half-year record of 286.9 million set last year.

The Port Hedland complex in Western Australia handles cargoes for producers including BHP Group and Fortescue Ltd., and its operations are a useful proxy for nationwide flows from the world’s leading shipper.

The rise in supply comes even as steel output in China is showing signs of cooling off. The nation’s crude-steel production dropped to 83.2 million tons last month, the weakest showing for June since 2018, according to government figures. Additionally, authorities in Beijing have vowed to do more to cull overcapacity, a push that may erode mills’ output.

The increase from the Hedland complex is in line with the Australian government’s prediction that nationwide exports will increase to 908 million tons in 2025. However, with downward pressure expected on iron ore prices, export values are expected to fall even as volumes expand. 

In Brazil, the second-largest exporter, shipments recently set a record for the month of June.

Iron ore futures were last at $105.20 a ton in Singapore, about 4% higher this year.