STEEL/IRON ORE

摘要

The increased orientation of global iron ore trades around China in the face of depressed steel demand from the rest of the world has been the defining feature of the 2q20 Capesize market. As the 3q commences, the sustainability of these trades is paramount. With delivered iron ore prices into China firm, export availability has played a key role in both shaping this year's Capesize cargo volumes and creating associated fleet inefficiencies, such as longer ballasting and current high port congestion in China (see below). Ultimately, however, the current dynamic also requires sustained demand from China, where the government has assumed a larger role in revitalising steel demand through such as mechanisms as special bonds.