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Dry Bulk Shipping: Brazil’s Iron Ore Exports to China on the Rise

Demand for Brazil’s iron ore, most notably from China rose by 4.1% during 2024. In its latest weekly report, shipbroker Banchero Costa said that “2024 was another positive year for global seaborne iron ore trade. In Jan-Dec 2024, global loadings of iron ore increased by +2.3% y-o-y to 1,669.2 mln tonnes, based on AXS Marine vessel tracking data. This builds on the +5.1% y-o-y growth recorded in 2023. Exports from Australia increased marginally in Jan-Dec 2024 by +1.3% y-o-y to 927.4 mln tonnes. From Brazil, exports surged by +5.0% y-o-y in Jan-Dec 2024 to 380.4 mln t. From Canada there was a +2.6% y-oy increase to 60.4 mln tonnes. From South Africa volumes increased +1.4% y-o-y to 53.3 mln t. India saw a correction of -14.8% y-oy in Jan-Dec 2024 to 37.0 mln t. Ukraine has seen a rebound to 12.1 mln t from just 2.9 mln t in the same period of 2023. This however is still below the 25.2 mln t exported by Ukraine in Jan-Dec 2021”.

Source: Banchero Costa

According to Banchero Costa, “demand has been again rebounding in China and the Middle East. Iron ore imports into China increased by +4.1% y-o-y in Jan-Dec 2024 to 1250.4 mln tonnes. Imports into Japan declined by -3.9% y-o-y to 91.1 mln t. To the EU, imports increased by +1.6% y-o-y to 72.8 mln t. Volumes into South Korea increased by +2.0% y-o-y to 72.1 mln t. Imports into Malaysia increased by +14.7% y-o-y to 23.5 mln tonnes. To Vietnam volumes were up by +41.0% y-o-y to 21.3 mln t. To Oman, volumes were up +18.1% y-o-y to 14.5 mln t, to Saudi Arabia by +27.1% y-o-y to 11.7 mln t, to Bahrain -9.3% y-o-y to 12.8 mln t. Brazil is currently the second largest exporter of iron ore in the world, after Australia. In Jan-Dec 2024, Brazil accounted for 22.8% of global iron ore shipments, after Australia’s 55.6%. Canada is third with just a tiny 3.6% share, followed by South Africa in fourth place with 3.2% and India with 2.2%”.

“In 2021, Brazil exported 345.7 mln tonnes of iron ore, which was a +4.7% increase y-o-y, from a low of 330.3 mln tonnes exported in the full year 2020. In 2022, activity softened again due to supply and logistical issues, with volumes declining by -2.9% y-o-y to 335.7 mln t. In 2023, volumes increased by +7.9% y-o-y to 362.3 mln t. In Jan-Dec 2024, iron ore exports from Brazil surged by +5.0% y-o-y to 380.4 mln t. About 49% of exports from Brazil in Jan-Dec 2024 were loaded on VLOCs (including Valemaxes), about 48% was loaded on Capesize tonnage, about 3% on Panamaxes, and less than 1% on Supramaxes. Looking at major loading ports for iron ore in Brazil, we have: Ponta da Madeira (168.0 mln tonnes in Jan-Dec 2024), Sepetiba/Itaguai (74.7 mln t), Tubarao (68.1 mln t), Guaiba (35.6 mln t), Acu (24.5 mln t), Ponta Ubu (8.8 mln t). Mainland China is still by far the top destination for Brazilian iron ore, accounting for 71.6% of Brazil’s exports in Jan-Dec 2024.

Source: Banchero Costa

Shipments to Mainland China increased by +7.0% y-o-y to 272.5 mln t in Jan-Dec 2024. Volumes to Malaysia (which is mostly for transhipment to other Asian destinations) increased by +6.1% y-o-y in Jan-Dec 2024 to 19.1 mln tonnes. Exports from Brazil to the EU increased by +1.3% y-o-y to 17.1 mln tonnes in Jan-Dec 2024. To Japan there was a -6.8% y-o-y decline to 10.6 mln t in Jan-Dec 2024, whilst to South Korea volumes increased by +1.4% y-o-y to 7.5 mln t., and to the Philippines declined by -2.8% y-o-y to 5.7 mln t. Shipments from Brazil to Oman surged by +30.0% y-o-y to 12.8 mln t in Jan-Dec 2024, to Bahrain declined by -7.5% y-o-y to 10.0 mln t, to Egypt increased by +52.5% y-oy to 4.7 mln t, whilst those to Turkey declined by -17.5% to 4.3 mln t”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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