Trafigura Group and Mubadala Capital have shelved plans to sell a Brazilian iron ore port after offers came in 30% below expectations amid a cloudy commodity outlook. The sellers had estimated the project at $5 billion, but weaker iron ore prices and soaring shipping costs pressured bids. Smaller Brazilian iron ore producers exporting from Porto do Sudeste are struggling with squeezed margins and production cuts.
The owners plan to hold the asset until a better price emerges. The port moved a record 27.8 million tonnes in 2025, well short of its 50 million-tonne capacity. It serves as a key gateway for Brazilian miners to Southeast Asian markets and is connected by rail to Minas Gerais.
Potential buyers included Global Infrastructure Partners, Vale SA, Gerdau SA, Stonepeak, and I Squared Capital. Trafigura and Mubadala acquired a controlling stake in 2014 from MMX Mineração & Metálicos.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing