A revival in Chinese demand for iron ore and coal has led to a significant recovery in charter prices, reported the Financial Times. One market participant was quoted as saying that average rates for Capesize vessels, which move coal and iron ore, nearly tripled over one week in mid-December.
The rise in prices was in part due to a return of iron ore shipments from Brazil and Australia to China. Previously, China had halted iron ore imports and relied on stockpiles because of falling steel demand and a dispute over prices with Brazilian producers.
However, the return of ships to the market could once again lead to over-supply which, combined with falling demand for coal, iron ore and wheat, depressed prices this year.