The ferrous complex was mixed on May 26, 2021 as spot lifted but paper fell. Still waiting for steel:
In news, the Baltic Dry is singing about booming supply:
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Momentum has been building in the spot market for capesize bulkers for the past week and on Monday it finally happened — average day rates crossed the $50,000 level.
Capesizes have been fixed for iron ore voyages from Brazil to China at consistently firmer rates, which has helped lift the spot market overall.
Spot tonnage in Brazil is running short for September loading dates and additional vessel supply to the Atlantic depends on how quickly port congestion in China unwinds.Chartering sources told TradeWinds that Vale is currently looking to fix panamaxes and mini capesizes of around 120,000 dwt to load at its Ponta da Madeira terminal from 15 September onwards.
…Vale fixed more than 15 ships on Thursday last week for trips from Brazil to China at between $34 and $35.15 per tonne, according to market sources.
But the capesize story is not all about Brazil. Iron ore volumes from Australia have bounced back too.
Seaborne exports climbed to 38m tonnes during the first two weeks of August, up by 1.9m tonnes or 5% year on year.
A couple of charts from the monthly Macquarie steel mill survey:
The recent dead cat bounce has been driven by Western commodity traders reckoning on MOAR Chinese credit. They are premature.
$100 for iron ore before year-end.