Brazilian iron ore exports edged lower year-on-year in September to 36.5mn t, with volumes slowly rebounding in October.
Exports to China fell by 4.6pc to 26.85mn t, according to Global Trade Tracker (GTT) data. Shipments to Malaysia ticked higher, reaching 1.9mn t.
Iron ore loadings from the Ponta da Madeira port dropped by 9.5pc to 14.25mn t, Kpler data show, following a brief disruption by the fire in early September.
Brazilian iron ore exports are projected to rise year-on-year in October. Shipments reached 12.7mn t over the first eight of 22 working days and are expected to total 36.7mn t — up from 35.2mn t in October last year, according to preliminary data.
Typically, Brazilian volumes increase during the fourth quarter before falling in January–February because of the rainy season.
Spot freight rates in the Atlantic spiked on 13 October after China announced it would impose fees on US-linked vessels starting on 14 October, in retaliation for new US tariffs on Chinese ships. The Tubarao–Qingdao rate climbed to $25.85/t on 13 October, but is poised to soften as Chinese-built vessels were exempt from new port fees imposed by China on US-affiliated vessels. Operator Bunge secured a vessel loading from Itaguai to Qingdao for 1–7 November at $24.30/t, which equates to around $23.45/t for the Tubarao–Qingdao route.
Competition for Capesize tonnage between Brazilian and west African charterers may tighten soon, as the first Simandou cargoes are expected to enter the market. "Our growth projects are also progressing at pace — at Simandou, we started loading the first ore at the mine for transport down the rail and to the port in October," iron ore producer Rio Tinto said today.
