Brazil’s iron ore exports rise in October

Market: Freight, Metals
08/11/24

Iron ore exports from Brazil rose year on year in October for the second consecutive month after a slowdown in August, following higher iron ore demand and steel output in China.

Exports increased by 5pc on the year to 35.3mn t in October. Exports to China increased by 6pc to 25.9mn t, data from Global Trade Tracker show. Exports to Malaysia, where Vale's facility at Teluk Rubiah is located, remained elevated but steady at 2.3mn t. Exports to Japan jumped from 384,000t to just above 1mn t.

Chinese October iron ore imports rose year on year by 4.7pc to 103.84mn t on the back of higher domestic steel demand. Western Australia iron ore loadings in October fell to just above 76mn dwt, from 78.85mn dwt a year earlier, but rebounded in early November.

Brazilian exports could increase further this year, with increased chartering in early November for December-loading cargoes. Exports totalled 7.1mn t on 1-8 November, data from analytics firm Kpler show.

The Brazil-China Capesize freight rate was $21.65/t on 7 November, up from a recent low of $20.30/t on 5 November, as chartering activity rose significantly on the back of higher demand for iron ore and lower Capesize rates, which fell significantly in October.

Charterers have continuously absorbed vessels as they reached the Atlantic since August, keeping overall availability low, as more shipowners moved their fleet out of the Pacific and into the Atlantic in expectation of significant revenues after record-high July exports. In addition, a number of west African vessels have been released back to the market after EGA encountered customs problems in Guinea, according to participants, which has slightly dampened momentum in the Atlantic Capesize market.

B Andrey Telegin

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