|The Capesize ship market entered the fourth quarter on an upbeat note, with the key figure for freight from Brazil to China remaining strong since the start of the year as demand for iron ore from China continues to rise.|
| S&P Global Platts has estimated the rate on the Tubarao-Qingdao route for iron ore cargo of 170,000 tons (plus / minus 10%) at $ 23 per ton on October 2, which is $ 1.35 per ton more than on October 1, Metaltorg reports .Despite continuing holidays in China and much of North Asia, the Capesize market has expanded into many active iron ore mining routes.China’s iron ore imports from Brazil in August rose 15% month-on-month to 23.5 million tonnes, according to the latest data from the General Administration of Customs. This is the highest volume of Brazilian iron ore imported to China in 2020, according to the latest data from the General Administration of Customs.Iron ore imports from Brazil usually peak in the second half of the year.|
The increase in imports helped boost demand for the Capesize tonne-mile.Freight rates and offers on the Brazil-China route improved significantly in October and early November, market participants said.“Freight rates for flights from Brazil continued to rise, especially for October dates, when the ballaster list seems tough for ships [that may arrive] for loading in October,” a shipping source said.“The strong momentum for October 20-30 [loading window] could very easily be carried over to November 1-10,” another ship source said.Vale will need to export at least 107 million tonnes in the fourth quarter to meet its 2020 target. Thus, market participants expect the current Brazilian market to be busier in the last quarter than in the third quarter.