Driven by continued growth in minor ore demand in China, global seaborne minor ore exports rose 7% y/y in the first seven months of 2023, vastly outpacing the 2% y/y growth in overall dry bulk exports, says Filipe Gouveia, Shipping Analyst at BIMCO.
Seaborne minor ore exports rise
Accounting for 51% of seaborne minor ore exports, bauxite exports also led year to date growth with a 9% y/y increase. Bauxite is refined into alumina, the primary ingredient in aluminium production.
Chinese aluminium production has rapidly increased since the start of the Ukraine war. Chinese competitiveness has improved due to high energy prices in Europe and a rise in local car manufacturing has boosted domestic aluminium demand. Nearly 80% of all seaborne bauxite export volumes now head to China.
“Capesize bulk carriers have benefitted from an increase in bauxite shipments and now account for 11% of capesize demand. On top of the additional tonnage, sailing distances for bauxite shipments are 71% longer than the average capesize distance,” says Gouveia.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!