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Tag Archives: Iron ore prices

Dry Bulk Market has Failed to Live Up to its Optimistic Expectations

27 Sunday Jul 2014

Posted by Angela Chao in Dry bulk shipping

≈ 5 Comments

Tags

BDI, Chinese housing market, Chinese imports, coal imports, Iron ore prices, Shipping vessel rates, vessel deliveries

steep drop in iron ore prices

Steep Drop in Iron Ore Prices

Forecasters expected a robust performance in the dry bulk shipping market for the second half of 2014, but a market recovery has failed as of yet to materialize. A number of less than favorable variables have eroded those early predictions. Factors such as a steep drop in iron ore prices, by as much as $40 per ton since the year’s start, were thought to increase iron ore movement, but record-breaking stockpiles of iron ore at China’s ports and Australia’s emergence as a pre-eminent iron ore supplier have precipitated a steady decline in BDI. By mid-month, BDI was down by 10% standing at 732 points, continuing its slow decline. Shipping vessel rates followed suit, with the Panamax below $5kpd and Capesize below $9kpd. Australia’s spot charters are up by 31% from the same time a year ago, negatively impacting the performance of Brazilian and other shipping countries. Adding to the fire is China’s decreasing coal imports and growing coal stockpiles, such as at Qingdao port where stockpiles are up by 47% from the beginning of the year. Chinese regulators have tightened up trade financing regulations, negatively impacting the performance of Panamax and Capesize, with year to date losses of 68% and 78% respectively. A weakened Chinese housing market is also not helping. Continue reading →

Growing Stockpiles of Iron Ore in Chinese Ports Affecting Iron Ore Futures

05 Tuesday Nov 2013

Posted by Angela Chao in Dry bulk shipping

≈ 1 Comment

Tags

Dalian Commodity Exchange, economic growth plan, International miners, Iron ore prices, steel mills, Yandi iron ore

Chinese iron ore futures continued their downward slide, as the month of October came to a close. 62% grade iron ore scheduled for May delivery, which is seeing the most activity on the Dalian Commodity Exchange, traded at $150 a ton, including VAT and China’s other import fees. Futures contracts began trading on the Dalian exchange in mid-October. Iron ore prices for immediate delivery fell more than a percentage point, to $131.80 a ton, reaching their low prices of early October. Industry analysts predict that prices could fall as low as $130 a ton in November, however early trading results hold a small glimmer of hope that perhaps Dalian iron ore futures have stabilized. For example, traders expect BHP’s Australian Yandi iron ore to sell at around $123 a ton. Futures analysts point to overabundance of supply as the reason for the low prices. Continue reading →

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About Me

Angela Chao
Chairman and C.E.O. of Foremost Group, a leading shipping and trading enterprise, Angela Chao is an active businesswoman who serves on several boards and loves to volunteer. Angela comes from a loving and supportive family of Chinese descent. The Chao family dedicate themselves to serving and contributing to society.

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Recent Posts

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Tags

Baltic Capesize Index BDI Capesize rates China Chinese economy coal imports coal shipping Crude Oil Dalian Commodity Exchange dry bulk market dry bulk shipping dry bulk shipping market freight rates iron ore Iron ore prices iron ore shipping Iron ore shipping vessels shipping industry steel steel industry

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