Capesize market is expected to face more headwinds in Q2 2019, despite some market optimism in Vale’s restart of Brucutu mine.
The return of Chinese trade participants from Spring festival failed to create a roar in the Capesize market this week.
It was the usual time of the year again, when the market takes a break for the Lunar New Year celebration for the week, but it was also rocked by the unfolding events from Vale’s dam collapse incident, which could greatly impact on seaborne iron ore supply.
Whilst many people believe that the IMO’s ambition to reduce shipping’s 2050 carbon emissions by at least 50% compared with 2008 levels appears to be an almost impossible target, shipping economist Martin Stopford does not agree.
A consortium comprising Bollore Africa Logistics and PowerChina International Group has been chosen as the preferred bidder for the Ibom Deep Seaport Project (IDSP) in Nigeria.
The Capesize rate has breached over the $20,000 level on Wednesday, supported by the bullish steel demand in China. Initially, the rally in Capesize rates started early in the week, making the biggest gains for front months on Tuesday, 8 May 2018.
Tonnage oversupply has dampened the overall freight market outlook this week, especially in the case of the oversupplied capesize market.
Capesize paper market started the week on bearish notes after a slight recovery from the trading near the floor on the previous week. News of US tariffs on steel imports and China’s lower iron ore imports in February certainly did not help the capesize market either and cast more doubts on the market outlook ahead.