BHP Billiton iron ore deal will swallow new Capesize capacity over next three to four years

摘要

BHP Billiton's agreement to supply 12 million tpy of iron ore per year to four major Chinese steel mills is likely to squeeze the global freight market as it absorbs new Capesize vessels. The 25-year deal with Wuhan Iron & Steel, Maanshan Iron & Steel Co, Jiangsu Shagang Iron & Steel and Tangshan Iron & Steel will comfortably absorb most of the projected new Capesizes due to enter the market over the next two to three years. That volume of iron ore will require 75 Capesizes in a full year - based on a vessel having a deadweight of around 160,000 tonnes - equating to 6.25 Capesizes per month, assuming that average delays do not get worse.