Rates to ship iron ore will extend gains as China starts replenishing stockpiles of the commodity used to make steel after prices fell, according to Arctic Securities ASA.
“We would expect volumes to remain firm and thus see freight rates for Capes continue to strengthen,” Erik Nikolai Stavseth, an Oslo-based analyst at the investment bank, said in an e-mailed report today, referring to Capesize vessels. “While the underlying market balance in dry bulk remains skewed towards oversupply –- effectively limiting how high rates can go –- our view is in a positive direction.”
Inventories at Chinese ports rose 6.5 percent since the end of April to 71.6 million metric tons, according to Beijing Antaike Information Development Co. Imported ore at Tianjin fell 30 percent to $110.90 a dry ton from a 16-month high on Feb. 20, according to The Steel Index Ltd. Daily earnings for Capesizes surged 22 percent this month to $6,300, according to the Baltic Exchange.
To contact the reporter on this story: Isaac Arnsdorf in London at email@example.com
To contact the editor responsible for this story: Alaric Nightingale at firstname.lastname@example.org