ECONOMY

Big jump in iron ore shipping rates spurs Capesize orders

The biggest jump in iron ore shipping rates since September is spurring speculation that demand from Chinese steelmakers is rebounding after stockpiles of the second-biggest seaborne cargo dropped to a five-year low.

“Stockpile levels in China are very, very low and rising Capesize rates are the first sign that demand for iron ore is returning,” said Eirik Haavaldsen, a shipping analyst at Pareto in Oslo.

Shipowners are now getting more bullish, with Greek companies ordering more Capesizes in the first quarter than at any time since 2008, according to Golden Destiny, a shipbroker in Piraeus.

[Bloomberg]