Drewry: Iron Ore Inventories Threaten Capesize Demand
Demand for Capesizes is being threatened by high iron ore inventories at Chinese ports and looming uncertainty in the global economy, according to shipping consultancy Drewry.
“We believe demand for Capesizes in 2019 will be proportional to iron ore inventories at Chinese ports. Even though China’s steel production will rise in 2019, a further drawdown in iron ore inventories could adversely affect the demand for dry bulk vessels,” Drewry said.See also supply and demand in a weird balance with the bulk carriers hardest hit.
In 2018, China’s iron ore imports fell 1.8% year on year even though the country’s steel production increased at a robust pace during the same period. While the country’s consumption of imported iron ore was higher in 2018 compared with 2017, imports declined as steel mills preferred to drawdown on port inventories.
Drewry believes that the Chinese government’s push for infrastructure and easing in monetary policy will continue to drive up the demand for steel in the country. Also, since the government is still committed to the clean air initiative, the country’s steel sector will remain under scrutiny for emissions. In turn this will support the demand for high quality ore, primarily met by imports. This will be positive for the dry bulk sector and will help underpin imports....MORE
And the 310 people dead in the mud, 169 confirmed deaths, and 141 "missing":