The spot capesize market briefly dipped below the $60,000 per day mark as major miners adjusted their iron ore production guidance for the year. Vale, Brazil’s largest miner, said it was now expecting output below the middle of its 315m-325m tonnes range as it focuses on margin optimization based on market conditions. While it produced 89.4m tonnes in the third quarter compared with 88.7m in the year-earlier period, its sales amounted to 67.8m, up from about 65m. It is anticipating a 6m tonnes per year increase in output from its Vargem Grande complex, while its S11D operations may be impacted by about 5m tonnes per year given the addition of new crusher equipment.

Coal production in Mozambique reached 2.5m tonnes in the last quarter, almost double that of the same period in 2020. Vale said coal sales grew strongly following improved operational performance and stronger demand from the seaborne market. However, due to the upcoming rainy season, the annual production rate of 15m tonnes may not be reached until the end of the year, although an improvement is expected to be achieved this quarter.

Rio Tinto has also adjusted its full-year iron ore shipments from Pilbara in Western Australia to 320m-325m tonnes due to operational issues. It was previously pegged at the lower end of its 325m-340m range. Shipments rose 2% to 83.4m tonnes in the third quarter, while for the nine months, it fell 2% to 237.5m tonnes.

BHP’s iron ore output meanwhile fell 4% to 63.3m tonnes in the quarter ended September versus the year-earlier period because of labour shortages due to the coronavirus travel restrictions impacting Australia.  Its guidance for output in the full financial year, however, remains at 249-259m tonnes.

The average weighted capesize time-charter inched up to $60,333 per day at the close on October 20 on the Baltic Exchange, from $59,955 in the previous session, halting a decline that lasted almost two weeks.