Surge in spot charters for iron ore cargoes to China

According to Commodore Research and Consultancy the surge in fixtures is “very significant as there only four weeks last year when 30 or more vessels were chartered to ship iron ore to China, and all those fell in the traditionally stronger second half of the year."

Demand is being driven by Chinese steel production, which has remained at a record high.

“Robust steel production and iron ore consumption in China - combined with iron ore

import prices being low and Australian and Brazilian iron ore production continuing

to surge -- is leading to China importing a very robust amount of iron ore cargoes,” Commodore explained in a note to clients.

The number of weeks with 30 or more China iron ore fixtures in 2014 has already hit the level for the whole of 20102. “In addition, there were two weeks in 2012 where 30 or more vessels were chartered to ship spot iron ore cargoes to buyers in China, and each of those weeks also occurred during the second half of the year.”

It said for shipments to hit such a level in May was encouraging as to what the second half of the year might bring when Brazilian and Australian iron ore exports peak.