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Asian iron ore futures retreated on Monday as traders weighed the impact of the closure of a key Brazilian port by top miner Vale Sa that raised supply risks and lifted prices in the previous session. The modest losses on Monday show investors remain cautious, waiting to see how long the Port of Tubarão, shut by a Brazilian federal court on Thursday on pollution concerns, will stay closed. Lee el resto de esta entrada
China has lifted its three-year ban that had shut out Brazilian miner Vale SA’s giant vessels and will now allow 400,000-deadweight tonne ships to dock at its ports.
The National Development and Reform Commission (NDRC) said that four ports in the country including Qingdao, Dalian, Tangshan Caofeidian and Ningbo will be allowed to receive the carriers once they comply with the technical standards, reported Reuters.
Vale’s Valexmax mega-ships had been banned in Beijing in early 2012 due to safety concerns. The ban had halted Vale’s expansion strategy in China.
These ships were specifically constructed to bring down the transportation costs of shipping iron ore to the country.
With global glut in iron ore prices, the decision to allow Valemaxes to take cargoes directly to China and reduce costs by $4-6 a tonne in the process, is seen as a positive move for the company.
China has issued ship design guidelines in February that will recognise ships of 400,000 dwt.
Ports that are interested in receiving the containers will be required to apply for permission if they meet the guidelines.
Splash 24/7 reported that a Valemax that previously belonged to a Brazilian firm was anchored at Qingdao’s Dongjiakou port this week.
Image: Beijing had banned Valexmax mega-ships due to safety concerns. Photo: courtesy of Vichaya Kiatying-Angsulee/freedigitalphotos.net.
- China has taken action to support its iron ore industry after prices continue to drop.
- China’s move means that it doesn’t want to rely on foreign supplies even if they’re cheaper.
- Iron ore suppliers outside of the big four are now at even greater risk than before.