Brazil-China iron ore freight rates reach multi-year high amid strong fundamentals

Thursday, 03 September 2026 22:39:45 (GMT+3)   |   Sao Paulo

The Tubarão-Qingdao freight rate, a key benchmark for Brazil-China iron ore shipments, has climbed to its highest level in recent years.

Shipbroker Banchero Costa said the rate reached $38.36 per metric ton this week, up 57 percent from the same period one year earlier. In January 2026, it was still near $20/mt.

Analysts said the rise reflects several factors: higher bunker fuel prices linked to the Middle East war, stronger seasonal steel demand from China's construction sector, and a volatile week in which tighter Pacific iron ore supply boosted demand for South Atlantic cargoes.

Sources said the Tubarão-Qingdao freight rate is likely to rise further in the coming weeks, with indications pointing toward $40/mt for October laycan.

LuizCompagnoni
Luiz Compagnoni
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I am a retired mechanical engineer, covering the steel industry in Latin America, from iron ore to finished products, over the last 20 years.

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