Simandou iron ore exports face rail constraints

Spanish Market: Freight, Metals
26/03/26

Exports from Guinea's newly launched Simandou iron ore project are lagging, with volumes constrained primarily by rail logistics, shipbroker Ifchor Galbraiths said.

"Simandou […] 2026 volumes are constrained by rail logistics, not geology. Despite a pick-up in the first quarter 2026, only eight locomotives were deployed, capping throughput," the company said.

This may change toward the end of the second quarter, Ifchor-Galbraiths suggested. Port operations at the SimFer terminal are due to begin by the end of the second quarter, while an 80km rail spur to the port will be on line by the end of the first quarter, which will be "a key step to unlock capacity and trigger further locomotive deployment", Ifchor Galbraiths said. SimFer is a a joint venture between the Guinean state and SimFer Jersey, itself a joint venture between global mining firm Rio Tinto and Chinese aluminium producer Chalco, which is connected to key Chinese state-owned enterprises, including steelmaker Baowu.

Transshipment vessels are also not working at full capacity yet. Two transshipment vessels have been moved to load bauxite near Kamsar, according to Ifchor Galbraiths. Meanwhile, three barges at Morebaya port are now rotating simultaneously, compared with just one operating in January.

"Official guidance still points to 15mn–20mn t in 2026 but is likely to skew lower without a clear gear shift. SimFer is still targeting 5mn–10mn, while the Winning Consortium Simandou could exceed 10mn t, locomotives permitting," Ifchor Galbraiths said.

Winning International is developing blocks 1 and 2 of the deposit, while Rio Tinto SimFer is developing blocks 3 and 4. Winning said it aims to reach capacity of 60mn–80mn t/yr. Rio Tinto SimFer expects "project production ramping up over 30 months and reaching 60mn t/yr at the SimFer mine by 2028", the company said.

The Simandou project was launched at the end of 2025, and the Winning International-owned 203,195 dwt Winning Youth sailed from Morebaya, Guinea with the first cargo, on 2 December for Majishan, China.

So far, around 1.7mn t — or nine Capesize/Newcastlemax cargoes — of Simandou iron ore have been loaded from Morebaya, all bound for China, Kpler data show. The London Courage is currently loading the tenth cargo, while the Port Ellen, First Eternity, Sunny Boffa and Cape America are sailing to Morebaya and are expected to arrive in April.

By Andrey Telegin

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13/04/26

China's CATL, Jianlong to scale truck electrification

Beijing, 13 April (Argus) — China's largest battery manufacturer CATL and private-sector steel group Jianlong signed a strategic co-operation agreement on 10 April, aimed at accelerating the decarbonisation of steelmaking and mining through greater electrification and renewable energy deployment. Under the agreement, the two companies will co-operate across areas including the electrification of steel industry operations, development of green and intelligent mines, and the electrification of logistics. They plan to deploy more than 3,000 electric heavy trucks during China's 15th five-year plan period (2026-30), roll out battery-swapping infrastructure along at least 16 logistics hub routes, and build and operate 100 battery-swapping stations. The partnership will also advance the development of centralised and distributed wind and solar projects, using Jianlong's industrial parks as pilot sites. The two sides aim to build a full-chain, zero-carbon model covering mining, transportation, energy and materials, creating a replicable template for industrial decarbonisation, CATL said. CATL and Jianlong said the initiative is intended to demonstrate integrated pathways for emissions reduction in heavy industry and logistics, supporting China's broader push to reduce industrial carbon intensity while promoting the large-scale adoption of electric heavy vehicles. CATL in November 2024 released its Tianxing series batteries used in heavy commercial vehicles. CATL's Tianxing heavy commercial vehicle ultra-fast-charging battery allows vehicles to replenish 70pc of energy within 15 minutes. The battery also offers an ultra-long lifespan of up to 1.2mn km, a maximum capacity of 600kWh, and a driving range of up to 500km. In short-haul applications such as mining transport and construction material mixing, the technology can significantly reduce charging time for electric heavy trucks, it said. China's new-energy heavy truck market maintained rapid growth in the first two months of 2026, extending last year's expansion and reinforcing pressure on the country's diesel demand just as domestic diesel prices surged in March. The country's sales of such trucks reached 233,200 units in 2025, almost tripling on the year, according to Chinese research institute EV Tank. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US inflation quickens to 3.3pc in March, gasoline soars

10/04/26

US inflation quickens to 3.3pc in March, gasoline soars

Houston, 10 April (Argus) — US inflation surged to an annual 3.3pc in March, lifted by higher war-driven energy costs, including the largest monthly gain for gasoline on record. The consumer price index rose at the fastest pace since mid-2024, climbing from 2.4pc in the 12 months through February, according to the Bureau of Labor Statistics (BLS). The gain was in line with estimates of economists surveyed by Trading Economics. Energy rose to an annual 12.5pc in March compared with a 0.5pc annual gain in February. The 10.9pc monthly gain in energy was the largest for a single month since September 2005. Gasoline surged by an annual 18.9pc in March after falling by 5.6pc in February. Gasoline's monthly gain was 21.2pc, the largest monthly gain since records began in 1967, according to BLS. Fuel oil rose by 44.2pc in March from a year earlier, following a 6.2pc annual gain in February. The 30.7pc monthly gain in fuel oil was the highest monthly gain since February 2000, according to BLS. Energy services rose by an annual 5pc in March compared with a 6.3pc gain in February. Electricity rose by 4.6pc compared with a 4.8pc gain in February. Airline fares rose by 14.9pc following a 7.1pc gain the prior month. Core drop, flat Fed rate still expected So called core inflation, which strips out more volatile food and energy, rose by 2.6pc compared with a 2.5pc gain the prior month. "Looking ahead, core CPI inflation still looks set to fall this year, now that nearly all the tariff costs have been passed through to consumer prices, unit labor costs are rising at a sub-2pc pace, and new rents are essentially flat," Pantheon Macroeconomics said in a note. Fed funds futures suggest the Federal Reserve is likely to keep its target rate unchanged at 3.5-3.75pc through the end of the year, with about a 24pc probability of one quarter-point rate cut by December and just a 1.1 point chance of a rate hike. Services less energy services, considered core energy services, rose by 3pc compared with a 2.9pc gain the prior month. Medical care services rose by 3.7pc following a 4.1pc annual gain. Food rose by an annual 2.7pc following a 3.1pc gain. Meat rose by 6.8pc, down from 8.6pc. Shelter rose by 3pc, unchanged from the prior month. New vehicles rose by 0.5pc while used vehicle prices fell by 3.2pc in March from a year prior, both unchanged from a month earlier. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Argentina sanctions glacier-protection reform

09/04/26

Argentina sanctions glacier-protection reform

Sao Paulo, 9 April (Argus) — Argentina's lower house has approved a wide-reaching reform to the country's glacier-protection law, which is expected to give a major boost to its copper industry. Argentina's lower house approved a reform that allows Argentinian provinces to decide which glaciers are important to their water resources and which are not. The "non-functional" glaciers would then be allowed to become mining sites, mostly benefiting copper mining. The approval was widely expected after the country's senate cleared the reform on 27 February. President Javier Milei strongly backed the reform, which ensured that his party and allies that usually side with the administration in big votes made up the necessary majority in both the Senate and in the lower house. The bill was approved late on 8 April by a 137-111 vote, with three abstentions. The bill needed 126 votes to pass. It is only a matter of time before Milei officially promulgates the law reform. The updated legislation is expected to be a major boost to Argentina's stagnant copper-mining industry , as several resources of the red metal are found within the glaciers' perimeters. The country's mining secretary released a report in early February forecasting that Argentina would account for 6.1pc of world' copper production by 2035 at over 1.5mn metric tonnes (t)/yr. This projection now becomes possible after the reform. Argentina's 20 most-advanced copper projects represent a combined $21.9bn in investment, and all are now positioned to significantly expand their resource bases as operators are permitted to work within glacier perimeters. Most of the country's copper reserves lie along the Andes mountain range on the border with Chile — an area that, on the Argentine side, is extensively glaciated. The reform, coupled with Argentina's intentions to bolster its incentive regime for large investments, could attract new foreign investment to the country's copper industry. Despite having 116mn t of copper resources, it was only able to export $4bn of the metal last year — while Chile, which is located on the other side of the Andes, sold $50bn, according to Milei. Javier Milei's office celebrated the approval, saying the reform eliminates "ideological distortions and artificial obstacles that hampered progress". His office had previously stated that the law, in its original form, allowed for misinterpretation that created legal uncertainty, curtailed investments and deprived provinces the right to regulate their natural resources. The original law, among other restrictions, forbade mineral exploration and extraction within the glaciers' perimeters, which was then set by the Argentinian institute of nivology, glaciology and environmental sciences (IANIGLA) based on unclear criteria, Milei said on 14 November. Major backlash ensues Changes to the glacier-protection law have caused a major backlash from political adversaries of Milei and the general public in Argentina. Greenpeace activists carried out peaceful protests in front of the lower house building, in Buenos Aires, and clashed with the police. Congress members, lawmakers and environmental organizations that oppose the reform all agree that easing the protection of glaciers could threaten Argentina's water security. Greenpeace said during the 8 April protests that this would be opening a path to destroy most of Argentina's glacial environment, putting the country's water security at risk. The glaciers' meltwater regulates rivers all across the country and serves as the primary feedstock for several agricultural projects. "We demand that this reform does not move forward, as it puts Argentina's main drinking water reserves at risk," Greenpeace said in a statement. Nevertheless, the reform was approved, and its supporters insist that no province will permit glaciers vital to the nation's water resources to be turned into mining sites, which remains to be seen. By Pedro Consoli Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Shipowners shun Mideast Gulf despite peace efforts

09/04/26

Shipowners shun Mideast Gulf despite peace efforts

Singapore, 9 April (Argus) — The ceasefire in the US-Iran war has sparked cautious optimism among shipping market participants that more vessels could soon be able to exit the strait of Hormuz. But Mideast Gulf loadings are unlikely to return to pre-war levels anytime soon, given high costs, the difficulty of securing insurance and the risk of continued attacks. The two-week US-Iran ceasefire announced on 7 April may offer some hope for vessels currently stranded in the Mideast Gulf, a freight analyst observed. "Yet the reality has not changed — the risks remain substantial and real for shipowners". Attacks on commercial shipping have brought transits through the strait of Hormuz to a near standstill since the war broke out on 28 February, severely curtailing exports of crude, oil products, LNG, fertilizers and other commodities. The Asia-Pacific region is the most heavily exposed to the supply disruptions. Governments in the region, including the Philippines , Malaysia and Thailand have held talks with Iran to guarantee the safe passage of some vessels through the strait. But these agreements appear to facilitate only ship exits, with shipowners and traders unconvinced the government-to-government deals — or the ceasefire — provide sufficient assurance for them to resume new loadings from the Mideast Gulf, shipbrokers noted. No-one is currently willing to be the first to exit the strait, an official at a South Korean refiner said. Iran is charging shipowners a fee of $1/bl for their vessels to pass through the strait, Hamid Hosseini, spokesman for Iran's oil, gas and petrochemical products exporters' union, told Argus today. Tehran is proposing a regional solution to the crisis , under which the proceeds of the vessel fees would be shared with other countries as war reparations, according to a bill being discussed in the country's parliament. But it is unclear if this will help smooth transits through the strait. The failure of an Indian charterer to secure a vessel for an Iraqi cargo this week encapsulates the continuing uncertainty. Indian state-controlled refiner Bharat Petroleum (BPCL) sought a Suezmax vessel on 7 April to load from Basrah to west coast India from 13 April. "Fixing with an India-based charterer should have provided [shipowners] sufficient confidence", one shipbroker said — especially given the Indian government held talks with Iran over two weeks ago, while Tehran on 4 April exempted Iraq from any restrictions imposed in the strait of Hormuz. But BPCL received no offers, even from Indian shipowners, and subsequently withdrew the cargo on 8 April. "This cargo had all the hallmarks of a relatively ‘easy fixture' but the risks [for shipowners] clearly overshadowed any interest toward it", an India-based shipbroker said. At least two other Mideast Gulf cargoes had to be withdrawn last week because the charterers were unable to secure offers from shipowners, Argus shipping data show. Risks remain More cargoes have emerged from the Mideast Gulf since the ceasefire. But a number of barriers are continuing to deter most shipowners from considering future loadings from the Mideast Gulf. "Yes, shipowners are likely to get good freight for Mideast Gulf shipments, but whether they actually get paid at the end remains a question", said another shipbroker, who reported incurring "significant demurrage" on one of its ships trapped in the Mideast Gulf. The freight clause in the charter-party did not clearly specify payment responsibilities in the event of war, leaving the shipowner "frustrated and locked in a dispute with the charterer", the shipbroker said. Securing insurance cover for the vessel and its cargo is also problematic. War risk insurance remains highly restrictive , with cover available only on a selective basis and largely limited to a small number of insurers, including some state-backed schemes. Any cover offered typically requires strong guarantees, sources said. Additional war risk premiums (AWRP) for the Mideast Gulf are at around 0.85pc of a vessel's hull and machinery value, with some cases at 0.55–0.75pc with a 50pc no claim bonus (NCB). AWRP rates are unlikely to ease immediately despite the ceasefire announcement, which will add further costs for shippers above significantly elevated freight rates, market participants said. Such difficulties mean there is little incentive for shipowners to seriously consider Mideast Gulf loadings, especially when they have other options available. "Freight rates in other regions have surged because of the Middle East conflict", a freight analyst said, "and that has offered opportunities outside the region for shipowners to secure attractive freight rates without risks". The Argus Crude Tanker Index, a composite measure of global very large crude carrier (VLCC), Suezmax and Aframax freight rates, has risen by 54.6pc since the war started — from $7.17/bl on 27 February to $11.09/bl on 8 April, which is just 2¢/bl short of its all-time-high on 26 March. "Overall, the risk-to-reward ratio for Mideast Gulf loadings still seems highly unfavorable, even with a ceasefire in place. I could lose my ship and my crew to a stray missile" a shipowner said. "Why would I want to put myself in that situation, when so many other options are available to me?" By Sean Lui Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Iran eyes regional solution for Hormuz crisis

09/04/26

Iran eyes regional solution for Hormuz crisis

Dubai, 9 April (Argus) — Iran is proposing a regional solution to the strait of Hormuz crisis that would involve at least some of the countries bordering the Mideast Gulf, according to a bill currently under discussion in parliament. Part of that would involve charging a fee for vessels passing through the key waterway, with revenues from this available to all participating countries as 'war reparations'. " Dubbed the 'law of strategic action for peace and development of the Persian Gulf,' the Iranian bill would govern Tehran's oversight and management of traffic through Hormuz, which has been severely disrupted since the start of the US-Israeli war against Iran on 28 February. Tehran's subsequent threats to any and all vessels it deemed to be 'unfriendly' led to traffic through the strait dropping to around seven a day in March, compared with typical daily movement of more than 100 before the war according to Kpler data. Diplomatic engagement with several of what Tehran dubs 'friendly' countries has seen a slight pick-up in traffic through the strait, with more than 11 vessels crossing on average in the first eight days of April. Malaysia, Thailand, the Philippines and Iraq have all secured deals for passage with Tehran, and Islamabad last week said it had secured the safe passage of 20 Pakistani-flagged ships. This pick-up came as Iran began introducing something of a toll system, whereby vessels would pay Tehran a fee to transit the waterway safely — a process first revealed by Iranian parliament member Alaeddin Boroujerdi in mid-March . Speaking to Argus , Hamid Hosseini, spokesman for Iran's oil, gas and petrochemical products exporters' union, confirmed the toll mechanism remains in place. "Every very large crude carrier (VLCC) transiting the strait has been paying $2mn, in line with what has been under discussion in parliament," Hosseini said. The fee being charged is directly linked to the volume of oil on board, Hosseini said. "Ship owners are being asked to pay $1 per barrel, and that can be done in the local currency, rials, or cryptocurrency, but only after the vessel has received a permit from the IRGC," he said. Tidings for all This mechanism appears to form the basis of how Iran sees the future of the strait of Hormuz, and its role as the guardian and guarantor of the key waterway. "The Iranian government, in co-operation with the Iranian armed forces, is obliged to provide services, like navigation guidance and vessel inspection, as well as compliance and financial assessments," the bill says, specifying that vessels related to "warring countries" will, for the most part, be barred. "The armed forces will determine which vessels are considered belligerent, and which are not," the bill says, stating that final say will come from the Supreme National Security Council (SNSC), one of Iran's most powerful decision-making bodies. Chaired by the president, the SNSC is responsible for national security, defense and major foreign policy strategy, and has been deeply involved in formulating Iran's war effort. The bill reiterates vessels will need to pay a fee to transit Hormuz, either in rials or cryptocurrency, it says proceeds will not go to Iranian state coffers, but to what it calls a 'Persian Gulf Reconstruction and Development Fund' that regional countries can apply to join. "The resources in this fund will be considered war reparations for Iran and other member countries, and be used for the reconstruction and development needs of the member countries," the bill says. Gulf countries are yet to show appetite for this plan. Oman's transport, communications and information technology minister Said Al-Maawali on 8 April said the country is party to all international maritime conventions, which do not allow for the imposition of charges on passage. The Iranian bill has secured approval from parliament's national security council, but has not yet been brought to the parliament floor for a vote, Hosseini said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Simandou iron ore exports face rail constraints

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