Rise in Brazil Iron Ore activity Supports Capesize Market

CAPESIZE earnings rose to the highest level this month as activity from Brazil gained traction leading to a more positive tone in the Pacific.

News ID: 75154

Date: 24 July 2017 - 10:34

According to MANA, The average weighted time charter on the Baltic Exchange rose 14% to $8,774 per day from a week ago to the highest level this month, while the Capesize Index increased by 165 points to 1,093 points at the close on Thursday.
While many participants are expecting a slowdown from China, at least on the macro side, the country's steel production races ahead, with June output gaining 5.7% to 73.2m tonnes, according to figures from the World Steel Association.
The Brazil to China voyage rose to $12.78 per tonne from $12.11 a week ago, while the Australia to China trip inched up to $5.40 per tonne from $5.14, according to the average on the Baltic Exchange.
Spot activity saw 15 deals being fixed, mainly ore going to China from Australia and Brazil, according to Clarksons.
In the period market, a deal was reported concluded at $14,500 per day for four to six months, Clarksons data showed. That is the highest since mid-May.
In the asset market, a 2006-built bulker was sold for $17.2m, according to VesselsValue. That is the same price as a deal earlier this month.
The online data provider also showed four newbuilding orders by Oceanbulk, each priced at $43m at a yard in China for delivery in 2019.
Among iron ore producers, Brazil’s main miner Vale said its iron ore output reached 91.8m tonnes in the second quarter, a 5.8% increase from a year earlier as its S11D project continued with ramp-up efforts.
Anglo American also saw increased iron ore production from its Brazilian mines to 4.3m tonnes last quarter versus a year earlier.