China Takes Advantage of Iron Ore Price Drop

China seizes upper hand in iron ore market after deal with Vale

Beijing’s removal of the ban on Brazilian miner Vale’s giant iron ore carriers is a sign of mainland China’s strong hand in the global iron ore market as major producers Brazil and Australia scramble to preserve market shares in supplying the commodity to the world’s second-largest economy.

A circular by China’s Ministry of Transport published on late Monday amended the regulation for mainland ports to handle mega dry cargo ships, legitimising the docking of vessels with a 400,000 deadweight ton capacity and effectively ending a three-year spat between Beijing and Brazil over Vale’s giant ore carriers known as Valemax.