Disruption worries for iron ore exports

摘要

In the early hours of 22 April, Brazilian mining giant Vale was ordered to temporarily suspend shipping activities at the country's Guaiba Island terminal, a dedicated iron ore export terminal. Later that day, the hurdle was cleared, and activities could resume. But should the market worry when Brazil's iron ore exports are disrupted? That all depends on the terminal, according to shipping association Bimco. Ilha Guaiba accounts for 7% of seaborne Brazilian iron ore exports. During February and March respectively, 11 and eight Capesize ships departed the terminal, carrying an average of 220,000t of iron ore. According to Oceanbolt, the dry bulk research platform, all but one of them headed for China and disruption at Guaiba Island terminal should not cause too much worry. Three months earlier, however, on 14 January, a fire broke out at the southern berth of Brazil's Ponta Da Madeira terminal (PDM), at Pier No. 4. The fire had the potential to halt a quarter of all exports from the terminal if the entire Pier No. 4 had been forced to close, as the pier exports twice the amount of the Ilha Guaiba terminal. Disruption at any part of Brazil's key northern Ponta Da Madeira terminal should therefore most certainly be worrying, according to Bimco.