https://www.hellenicshippingnews.com/chinas-iron-ore-imports…
The dry bulk market trade’s benchmark trade, i.e. China’s iron ore imports are undergoing a structural shift, with the country looking to reduce its import dependence from Australia, in favor of other countries. As a result, the dry bulk market is expected to witness a similar shift as well.
In its latest weekly report, shipbroker Intermodal said that “iron ore prices have jumped significantly in the week prior to the Chinese New Year with traders and producers stocking up on raw materials. China’s stronger-than-expected steel production, combined with an aggressive restocking of inventory levels and the country’s ports had driven iron ore prices well above expectations. Iron ore stocks have also spiked as analysts upgrade their price forecasts for the commodity on the back of another unexpected recovery.
The record prices of last May tumbled unexpectedly fast to under $US100 a tonne, and currently iron ore is taking the pundits again by surprise with a new run that now has it back near $US150/t. The sentiment is apparently still driven by signals about increased infrastructure spending in China and upgraded price forecasts. Nevertheless, and apart from the price of the commodity itself, it is very important that we still see the good fundamentals and dynamics there, which in any case support our overall optimism and hopes that better and more stable freight rates for Capes must be around the corner”.
Jeff