Project Description
May saw a 5% increase in overall trade, primarily driven by iron ore, steel, and construction, which typically experience higher activity during summer months. However, year-over-year trade growth for May was only 0.5% higher, indicating relatively stagnant overall growth. This is largely attributed to coal, which has returned to normal levels in 2024 following exceptionally strong performance in 2023.
Iron ore demand was coming from China, despite the well know problems with the economy and the reduced steel production. It’ll be interesting to see if iron ore demand falls back in the second half of the year which traditionally been stronger than the first half.
Bauxite performed well in the second quarter, contributing to the 1% year-on-year growth in the ores and minerals category. This, combined with a strong showing from manganese ore in May, indicates a gradual strengthening of steel production throughout the year, particularly evidenced by strong steel product trade across all industry categories in May.