“Last week, capesize rates rose an impressive 94%. Yesterday saw an additional increase of 17%, and near-term prospects are extremely promising,” Commodore Research & Consultancy managing director Jeffrey Landsberg said in a note.
The Baltic Capesize Index climbed 430 points on Monday to hit 2,852 points with average spot TC rates at $20,988 per day.
Chinese iron ore imports have been strong this year with the country importing a record 699.5m tonnes of iron ore in the first nine months of 2014, up 16% on the same period in 2013.
Brazil iron ore production in Q3 was a record 85.7m tonnes, up 3% on Q3 2013 and the fourth quarter production figures are expected to be even higher.
“This is very significant, as capesize rates are already at high levels while demand for capesize vessels to ship Brazilian iron ore will become even stronger during the next two months,” Landsberg said.
“With capesize rates already finding great support, the prospects for the next two months are extremely promising.”
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