Back with a vengeance

Jose Carlos Martins, head of ferrous metals at Brazilian mining giant Vale SA, says his company plans to double the volume of iron-ore its esxports to China within the next five years

Martins is quoted by Reuters reporters in Rio de Janeiro as saying that in total Vale export about 400 million tonnes of iron ore a year within five years, nearly 50% more than the 270 million tonnes it exported in 2013.

He added that Vale planned to either acquire or charter in new ships to all carry this cargo.

News that Vale, the world’s biggest iron-ore producer, is about to flood the Chinese market with iron-ore will not be welcomed by its rival producers BHP Billiton and Rio Tinto, who have seen the price of their product slip because of a big oversupply that already exists in the iron-ore market.

Bulker owners will be keen to carry Vale’s iron-ore shipping contracts comes with much larger ton-miles ratios attached.