Jump in Indian Spot Iron Ore Cargo Volume
Indian spot iron ore cargo volume has recently found a considerable amount of strength. 6 Indian spot iron ore cargoes surfaced in the market last week, which marks the largest amount seen since the Week Ending March 30, 2012. All of the cargoes will be exported to buyers in China, and all will be shipped on handymax vessels.
Overall, as Chinese iron ore port stockpiles have continued to plummet, China has begun to ramp up its purchases of imported iron ore. Spot iron ore prices are very high, and therefore various iron ore-rich countries, including India, also now have even more incentive to export iron ore. This development is a positive issue for the handymax market and also the entire dry bulk market at large. China remains poised to continue ramping up its iron ore imports. Imports will continue to come primarily from Australia and Brazil (and in fact, exports from Australia and Brazil are poised to continue to increase as this year progresses due to normal seasonality in Australian and Brazilian iron ore production), but other nations are also likely to increase their own iron ore exports to China as well.
Source: Jeffrey Landsberg, Managing Director, Commodore Research & Consultancy