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Thursday, 23 July 15
THE CAPESIZE SEGMENT KEPT FOUNDING SUPPORT ON INCREASED DEMAND FROM CHINESE STEEL MILLS - INTERMODAL
Intermodal LogoThe Dry Bulk market closed off on Friday (17July 2015) noting substantial gains and the BDI surpassing the 1,000 points level for the first time after several months. This, without a doubt created a considerable shift in market sentiment that has been under significant pressure due to weak fundamentals persisting during the last twelve months, said Intermodal ship broker.

According to Greece based broker, the main driving force behind last week’s strong market performance was the Capesize segment, which pushed the BCI up almost 30%. We still need to see this better performance being repeated for a few more weeks in order to be convinced of the sustainability of this positive shift. At the same time period activity also increased further on the back of improved sentiment across the market, with number across the board moving up.

Commenting on Cape, the broker noted that, the Capesize segment kept founding support on increased demand from Chinese steel mills, as local producers have been trying to take advantage off-low iron ore prices further boosting this long awaited restocking. Pacific Panamax business closed off the week with firmer rates despite the fact that activity slowed down after mid-week. Demand from ECSA and North Atlantic continued to attract with market sentiment dictating more upside being on the way.

Intermodal noted that, things also remained very upbeat for the Handysize/Handymax/Supramax sizes, as firmer rates were reported across both basins, while the strength of the Atlantic during the past weeks, seems to have finally pushed up the Pacific market as well, with improved numbers being reported throughout the week.


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