Iron Ore Dry Bulk Trade
IRON ORE DRY BULK TRADE
Demand for dry bulk commodities like iron ore is driven by industrial production and growth requirements. An increase in steel production stimulates the growth of iron ore shipments and also the trade. From early 2000s, the iron ore market began a transformation following China’s increasing demand for steel.
World production of iron ore exceeded 1 billion tonnes in 2002. International iron ore trade reached record levels at 512 million tonnes (Mt). Price negotiations in 2003 resulted in a 9 per cent average price increase.,
The booming iron ore industry increased spectacularly to 71.5 per cent in 2005. In 2006, world production grew by 11% followed by 9% in 2007, to reach 1.6 billion tons. Brazil, China, Australia and India emerged as major producers.
Dry bulk market iron ore continued its rise from 2000 to 2007. China imported 380Mt , up from 148Mt in 2003. 2007 was a good year for dry bulk, with BDI moving up from 4,421 points in January to end the year at 9,143. Freight rates boomed in 2007 surpassing 2005/6 levels. The increases continued until mid/Aug. 2008 and then nosedived. In May 2008 BDI touched 11,793 before suffering a major setback by fall to lowest 663 (4th quarter 2008)
In 2007, around 5million dwt was ordered in newbuildings. Dry bulk carriers saw major price hikes for both new and old tonnages. Orders for Capesize newbuildings were 87% of the existing fleet. VLOC boomed, with 65 more ordered, twice that of the existing fleet. New bulkers saw order books grow from 90 million dwt to 240 million dwt .
World iron ore exports increased by 8.1% in 2007(6.1% in 2006) with Brazil the leading exporter at 269Mt, overtaking Australia. Indian exports grew for the seventh consecutive year, to 94Mt, third position ahead of South Africa, Canada, and Russia. China imported 383Mt, 41%(43% 2006), in 2007. 2008 exports recorded 844Mt, an increase of 6.5%. Australia (309.5Mts) and Brazil (281.7Mts) accounted for over
Demand for dry bulk commodities like iron ore is driven by industrial production and growth requirements. An increase in steel production stimulates the growth of iron ore shipments and also the trade. From early 2000s, the iron ore market began a transformation following China’s increasing demand for steel.
World production of iron ore exceeded 1 billion tonnes in 2002. International iron ore trade reached record levels at 512 million tonnes (Mt). Price negotiations in 2003 resulted in a 9 per cent average price increase.,
The booming iron ore industry increased spectacularly to 71.5 per cent in 2005. In 2006, world production grew by 11% followed by 9% in 2007, to reach 1.6 billion tons. Brazil, China, Australia and India emerged as major producers.
Dry bulk market iron ore continued its rise from 2000 to 2007. China imported 380Mt , up from 148Mt in 2003. 2007 was a good year for dry bulk, with BDI moving up from 4,421 points in January to end the year at 9,143. Freight rates boomed in 2007 surpassing 2005/6 levels. The increases continued until mid/Aug. 2008 and then nosedived. In May 2008 BDI touched 11,793 before suffering a major setback by fall to lowest 663 (4th quarter 2008)
In 2007, around 5million dwt was ordered in newbuildings. Dry bulk carriers saw major price hikes for both new and old tonnages. Orders for Capesize newbuildings were 87% of the existing fleet. VLOC boomed, with 65 more ordered, twice that of the existing fleet. New bulkers saw order books grow from 90 million dwt to 240 million dwt .
World iron ore exports increased by 8.1% in 2007(6.1% in 2006) with Brazil the leading exporter at 269Mt, overtaking Australia. Indian exports grew for the seventh consecutive year, to 94Mt, third position ahead of South Africa, Canada, and Russia. China imported 383Mt, 41%(43% 2006), in 2007. 2008 exports recorded 844Mt, an increase of 6.5%. Australia (309.5Mts) and Brazil (281.7Mts) accounted for over