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Iron Ore

Shipping Eyes Brazilian Ore Exports

Image: Vale S.A.

 Following the plunge in dry bulk freight market, shipping companies are banking on increased iron ore exports from Brazil to China and India to shore up freight rates, reports the Hindu Businessline.   Hauling ore from Brazil to China will cost almost double than that from Australia.  So in the current situation, ship-owners feel an increased flow of iron ore from Brazil, the world’s second largest producer, could boost the rates, as hauling the ore from there to China cost almost double than that from Australia.   Brazil accounts for almost 25% of the global market share of iron ore’s trade volume. Brazil is home to one of the largest mining companies, Vale S.A.    Brazil’s Ministry of Industry, Development and Foreign Trade had, last month, said iron ore exports from the country had increased by over 17 per cent in December to cross 37 million tonnes (mt), compared with the year-ago month.   Vale increased output is reflected in Brazilian iron ore exports for December. The volumes from Brazil surged to 37.39 million tons in December, which is a huge 44% month-over-month.    Shivakumar, Group CFO of Great Eastern Shipping hoped that Brazil is able to sell their iron ore more competitively than the Australians, because Brazilian iron ore to China is the best possible thing to happen to dry bulk shipping.

Australia's Iron Ore Miners Hang Tough as Prices Fall

By James Regan, Reuters If Australian miners are worried about the dramatic decline in iron ore prices, it doesn't show. At an annual gathering of many of the world's biggest and smallest iron ore producers here the mood is upbeat - as if the heftiest one-day fall in ore prices since the global financial crisis never happened. "Iron ore mining isn't tennis, it's a contact sport," said David Flanagan, chairman of Atlas Iron Ltd

China's Qingdao Port Probing Iron Ore Financing Fraud

China's Qingdao port said on Wednesday it is investigating whether iron ore warehouse receipts were fraudulently used multiple times to raise finance from different banks, Xinhua news agency reported. The probe is focussed on one trader with iron ore receipts, the Chinese news agency said. It follows a broad investigation earlier this year by Chinese authorities into the use of iron ore as collateral in financing deals.

Vale Profit Falls Amidst Record Output

Brazilian miner Vale SA posted a sharp decline in profit from the previous quarter as lower iron ore prices undermined record production of the steel-making ingredient. Vale, the world's largest producer of iron ore, reported second-quarter net income of $1.43 billion, down 43 percent on the previous quarter and below the average analyst estimate of $1.89 billion in a Reuters survey. "It was a very challenging environment where the price of our most important product has dropped by

Australia's Port Hedland Iron Ore Exports to China Rise

Port Hedland: Pilbara Ports Authority

 Iron ore shipments to China from Western Australia's Port Hedland, the world's biggest terminal for shipments of the steelmaking raw material, rose 3.3% from February to 31.2 million mt in March.    While the rise is partly attributable to fewer shipping days in February, it also underscores efforts by Australian miners to displace China’s domestic production of iron ore. It also indicates that demand remained strong despite weakness in the market.  

Essar Ports Acquires Vizag Port's Iron Ore Complex

Vishakhapatnam Port Trust’s Iron Ore Handling Complex on a Build-Operate-Transfer basis

  Essar Ports Ltd. (EPL) today announced the taking over of Vishakhapatnam Port Trust’s (VPT) Iron Ore Handling Complex on a Build-Operate-Transfer (BOT) basis, for a period of 30 years. Essar Vizag Terminals Ltd. (EVTL), a wholly owned subsidiary of EPL, will comprise three berths (two outer harbour berths and one inner harbour berth) with a combined capacity of 23 Million Tonnes per Annum (MTPA) which will be developed in two phases.

SKorean Shipbuilders Lower on Steel Price Concerns

Shares of shipbuilders and automakers were lower in late morning trading as investors react belatedly to the possible increase in steel prices, reports indicated Hyundai Heavy Industries was down 4,500 won or 1.2 percent at 380,000 won, Samsung Heavy Industries was off 600 won or 1.9 percent to 30,400 won and Daewoo Shipbuilding & Marine Engineering fell 300 won or 0.8 percent to 39,300 won. Hyundai Motor was down 1,300 won or 1.9 percent at 67,600 won and Kia Motors down 50 won or 0

China's Demand Slows, BDI Index Unlikely to Jump

According to a London report issued Aug. 14, dry bulk freight rate index climbed by 2.5% on Friday at Baltic Mercantile and Shipping Exchange, a moderate rise for two consecutive days. Royal Bank of Scotland (RBS) indicated in its report that China's bulk commodity import will slow down, and that China's bulk material import is predicted to drop from record high and slacken afterwards, according to Financial Times, Aug. 17.

JFE’s Ship Unit Targets Orders for Five Vessels

JFE Holdings Inc.’s shipbuilding unit is reportedly aiming to win orders for as many as five iron ore carriers, according to a report on Iron-ore carriers including Nippon Yusen K.K. and Mitsui O.S.K. Lines Ltd. are expanding dry-bulk fleets to tap demand for the steelmaking material. Exports of the ore from Australia, the world’s largest shipper, are forecast to rise at an average annual rate of 7 percent to 2015

Iron-Ore Ship Rates Rise as China Spends

Iron-Ore carrier daily rates rebound as China spends US$158-billion. Iron-ore ships are poised to earn more than operating costs for the first time this year as rates rally on speculation Chinese steel mills will accelerate imports because of a 1 trillion-yuan ($158 billion) building program, reports Bloomberg Business News. Capesizes, each carrying 160,000 metric tons of ore, will earn $12,500 a day in the fourth quarter

Baltic Sea Freight Index Remains Flat

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, remained unchanged on Monday.   The overall index, which factors in average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels

First SA Cargo Ship Registered

Photo: SAMSA

 Three South Africa youths made history in South Africa’s maritime economy sector at the weekend when they boarded the country’s first registered cargo ship since the dawn of democracy.   Similarly, the city of Nelson Mandela Bay also marked its name in the country’s

Slower China Growth Hurts Global Shipping Sector: Fitch

Image: China Ocean Shipping Company

 China's slower growth and economic transition will pose significant risks for the already struggling shipping sector, rating agency Fitch said.   The shipping sector is already faces overcapacity, weak freight rates and stretched financials.  

Weaker Capesize Demand Pulls Down Baltic Index

Photo: Alex Sergienko

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry-bulk commodities, fell on Wednesday, primarily due to lower demand for capesize vessels.   The overall index, which factors in average daily earnings of capesize, panamax

Market Weighs on Asia Dry Bulk-Capesize Rates

Tonnage list grows in Pacific, Atlantic oceans; lack of coal cargoes weigh on freight rates. Freight rates for capesize bulk carriers are set to slide further next week, after falling to their lowest level in five weeks, due to a mounting supply of tonnage and uncertain cargo demand

No Tianjin Impact, Says Cosco

Pic: China COSCO Holdings Company Limited

 China COSCO Holdings Company Limited says its operations at Tianjin port have been unaffected by the blasts that killed 114 people here also put a deep dent in the compact between China’s government and its middle class.  

Can Chinese Steel Support Freight Markets?

Is China’s steel exports enough to support the freight market?   No, it’s not enough, you will need lower Chinese iron ore production too in order to keep growing imports of iron ore into China that will support the dry bulk freight market

CSDC Profts Soar

Photo: China Shipping Development Co. Ltd

 The bulker and tanker unit of state conglomerate China Shipping Group, China Shipping Development Co (CSDC) has delivered a first half performance which saw its profit spike, exceeding the company's latest forecast.   CSDC has recorded a six-fold increase in profit in the first half

Dry Bulk Recovery Still a Long Way Off

Photo: Norden - Pierre F. Beckman, Bulldog and Partners

The dry bulk shipping market will remain in recession due to contracting demand for iron ore and coal, and any recovery is not expected until 2017, according to the Dry Bulk Forecaster report published by global shipping consultancy Drewry.  

Weak Demand Across Vessels Drags Baltic Index Down

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell on Thursday for a third consecutive session due to a drop in vessel rates. The overall index, which factors in average daily earnings of capesize, panamax

Petrobras Chairman Ferreira to take Leave

Murilo Ferreira graced the cover of Maritime Professional.

Murilo Ferreira will take a leave of absence as chairman of state-run oil firm Petrobras, turning his full attention to his job as chief executive of Vale SA as the mining giant grapples with a downturn in the sector.   Petroleo Brasileiro SA, as the company is formally known

Asia Dry Bulk-Capesize Rates to Climb

Shipowners confident rates will climb on tighter tonnage supply; Shipowners seek rates premium for Australian coal cargoes. Freight rates for capesize bulk carriers could continue to recover as ship owners scent the possibility of higher cargo volumes on tighter tonnage supply, ship brokers said

Great Lakes Ore Trade Dips in August

Photo: Interlake Steamship

Shipments of iron ore on the Great Lakes and St. Lawrence Seaway totaled 5.9 million tons in August, a decrease of 19 percent compared to a year ago, according to the Lake Carriers’ Association (LCA).   LCA said the ore trade was suppressed by continued high steel imports levels

Great Lakes Cargo Volumes Down in August

Photo: LCA

Foreign steel, vessel repairs and a broken lock combine to cut U.S.-flag Great Lakes float 10 percent in August, according to the Lake Carriers’ Association (LCA). Continued high levels of steel imports, coupled with three large vessels idled for repairs and a lengthy closure of the

Baltic Dry Index rises 17% in Sept

Bulk ship. Image: Stockcargo

 Sparking speculation that a recovery in commodities could be around the corner, the Baltic Dry Index, a measure of shipping costs for commodities,  has risen 17.5 per cent since September 15, reports Business Standard.   The indexis up 21 per cent at 943, since January this year

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