Nov. 23 (Bloomberg) -- Rents for capesize ships that haul iron ore are set to drop as expanded stockpiles curb Chinese demand for the steelmaking ingredient, according to RS Platou Markets AS.
“We see further buildup in iron-ore inventory and expect the same to exert downward pressure on the capesize segment in coming months if steel production stays muted, given the headwinds facing steel demand in China,” Oslo-based Platou analyst Frode Moerkedal said in an e-mailed note today.
Daily rates for capesizes have almost tripled since the end of July to $26,786, according to the Baltic Exchange, a London- based publisher of shipping costs. Iron-ore imports into top global steel producer China fell 18 percent in October to 49.9 million metric tons, according to customs figures.
--Editors: Dan Weeks, Sharon Lindores.
To contact the reporter on this story: Isaac Arnsdorf in London at firstname.lastname@example.org
To contact the editor responsible for this story: Alaric Nightingale at email@example.com