Today, Capesize benchmark spot rates rose by USD5.0k/day, which, when excluding last year’s increase of USD6.2k/day, is the largest daily incremental increase seen since 2010. The market has shrugged of the negative sentiment stemming from potential cooling in Chinese steel production, the military coupe in Guinea and potential weather disruptions in Asia. Australia is reportedly seeing increasing shipments, with the West Australia to Qingdao route rising 8% versus 5% for Tubarao to Qingdao.
Total Chinese iron ore stocks have built 9.7% YOY, while Australian stocks are up 6.3% and Brazilian stocks are up 27.8%. Accordingly, Australia’s share of total Chinese iron ore stocks is down from 52% one year ago to the current 50% and Brazil’s share has increased from 24% to 28%.