NS United, the Japanese shipping arm of steel giant Nippon Steel Sumitomo Metals, will dedicate a 400,000-dwt newbuilding to trading iron ore from Brazil to China for Vale as the Brazilian miner expands its controversial Valemax project even further.
The long-term deal marks the first time a Japanese-built and owned Valemax will join the dedicated Vale fleet.
The Tokyo stock exchange-quoted dry bulk owner said it had struck a 25-year contract of affreightment (COA) deal for a 400,000-dwt eco-ship with Vale.
The newbuilding has been ordered at Japan Marine United (JMU), which will build the vessel at its Ariake plant for delivery in the second half of 2019.
TradeWinds understands an option for a further vessel has been included in the deal. The eco-ship design has been developed with Japan’s ClassNK.
NS United president Toru Obata signed the contract with Vale executive director Gerd Peter Poppinga at the end of last week but NS United declined to comment on where it will build the ship.
Vale’s ongoing newbuilding project has involved the Chinese ordering a total of 30 Valemaxes of 400,000 dwt in China and split between Jiangsu New Shipbuilding, Beihai Shipbuilding and Shanghai Waigaoqiao Shipbuilding.
The on-order ships have raised controversy as they are adding to overcapacity in the market and the scale of the Valemax fleet is enough to monopolise the iron ore trades between Brazil and China.
NS United parent Nippon Steel first got involved with the Valemax project when it experimented using the vessels to trade to its Japanese steel mills. However, it is understood draught restrictions meant the ships could not trade to its terminal fully laden.
In a statement, NS United’s Obata said: “Capesize business is one of the top priorities in NSU’s mid-term business plan and NSU is confident that this collaboration will also contribute to Vale’s export expansion strategy.”
