Brazilian iron ore exports rose by 16pc from a year earlier to 40.7mn t in October, the highest for the month since at least 2017 and the second-highest for any month on record, after 40.9mn t in July.
Exports to China increased by 13pc to 29.1mn t in October, according to Global Trade Tracker (GTT) data. Shipments to South Korea jumped to 1.7mn t.
Brazil's main iron ore producers lifted their output in the third quarter. Multi-metals mining group Vale increased its production to 94.4mn t in the period, a 4pc increase on the year and its strongest quarterly performance since 2018. Domestic producer CSN's output, including third-party purchases, rose by 4.3pc to 11.9mn t, while steelmaker and mining firm Usiminas posted a 10pc year-on-year gain to 2.4mn t.
Soaring Brazilian iron ore exports last month align with record-high Australian exports. Combined shipments from west Australia's four main ports — Hedland, Walcott, Dampier and Onslow — totalled 87.7mn deadweight tonnes (dwt) in October, up from 77.1mn dwt in the same period last year, according to provisional shipping data. This was the highest exports for the month from the four ports since at least 2017.
Australian iron ore shipments and freight rates were elevated in October, partly offsetting a seasonal reduction in bauxite exports caused by heavy rains, CSN said. "This scenario, coupled with geopolitical uncertainties and the imminent threat of new sanctions, kept fuel prices at high levels of around $500/t, putting pressure on maritime freight throughout the period," CSN said.
The first Guinean iron ore cargo from the Simandou mine may hit the market in November. This could prompt Australian and Brazilian iron ore producers to accelerate loadings before Guinean ore begins to erode their market share, pushing Capesize tonne miles and freight rates higher.
Global Capesize tonne miles rose by 5.3pc from a year earlier in September, to around 851.5bn tonne miles, according to trade analytics platform Kpler. Brazil was one of the key contributors, with its tonne mileage rising by 1.8pc on the year to 209.9bn tonne miles.
Spot freight rates in the Atlantic remained steady in early November, as chartering activity in the basin was slow. But expectations of a rebound in Guinean bauxite exports after an extended rainy season ends could push rates higher in the near term, especially after west Australia to China rates jumped in early November when Chinese demand increased.
The Tubarao to Qingdao rate climbed to $23.40/t on 6 November but held below the recent high of $25.85/t on 13 October, when rates jumped following the introduction of Chinese port fees, which were later suspended.
