Dry Cargo Archive

February 14th 2019

Market Outlook Up but down

Our updated forecasts represent a bit of mixed bag. The good news is our assessment of the fundamentals over the rest of the year, and the resultant price forecasts, see the market picking up significantly from where things currently stand, whether in the spot market or against the forward curve. Less positively, we have had to trim our forecast rates from the last set we produced, to account for the deepening impact of the US-China trade war, the slower outlook for the global economy and of course the outcomes of the Brumadinho dam collapse.

January 17th 2019

U.S Dry Bulk Trade Reshaped by President Trump’s Policies

The United States trade war is starting to bite hard, with the media and markets highlighting the big falls in the latest Chinese trade data for both exports and imports. This is worrying news for shipping, although it may strengthen resolve to reach a new U.S.-China trade accord later this month. But less widely reported, beyond the obvious soybean stories, is how Trump’s policies are impacting U.S. dry bulk commodities. Some of the shifts are subtle but there are some notable winners and losers.

November 23rd 2018

Steel prices fall due to demand fears increase

-Rebar steel prices in China have fallen by over 5 per cent this week due to concerns over future demand
-The rebar spot price this morning sits at US $625/tonne
-Margins have also been under pressure but reducing prices in iron ore and coke this week has softened some of the fall
-In addition to expectations of weakening demand, supply expectations remain strong with mills producing at record levels
-With further expectations of more price falls on the horizon, steel traders are also reluctant to replenish inventories at the moment