Pollution worry boosts Chinese demand for Brazilian iron ore

Demand for Brazilian high-grade iron ore is growing in China as steel mills shun ore mined domestically because processing it causes more pollution, Reuters reports.

The news agency quotes Seanergy Maritime Holdings Corp. Chief Executive Stamatis Tsantanis as forecasting that Chinese demand for iron ore will increase on average by 4 percent to 5 percent a year over the next three years, just as it did last year.

Most iron ore imported by China in 2016 was from Australia, but Brazilian Ministry of Foreign Trade data indicate that the volume of exports of Brazilian iron ore to China rose by nearly 16 percent to 214 million tonnes in that year.

Reuters quotes Eagle Bulk Shipping Inc. Chief Executive Gary Vogel as saying his company believes the Chinese tendency to import more iron ore from Brazil will persist as the Chinese authorities stress the need to control pollution over the next three years.