Spot rates for capesize bulkers receded on Thursday as prices for iron ore and steel fell in the face of weakening demand.
The Baltic Exchange’s Capesize 5TC of spot-rate averages across five key routes slid 4.5% to $17,505 per day, marking the lowest level in a week.
Clarksons Securities pointed to reports that iron ore prices have fallen to below $90 per tonne, bringing them to their lowest level this year, and steel prices have slipped as Beijing’s Covid-19 situation worsened.
The falling prices have prompted the World Steel Association to expect a 2.3% decline in global steel demand for 2022.
As capesizes led the Baltic Dry Index into a one-day drop of 34 points to 1,837, bulker shares also slid, with the Breakwave Dry Bulk Shipping Exchange Traded Fund falling 2.8% to $8.70 in afternoon trading in New York.
Clarksons said it sill expects dry bulk equities to remain firm as long as average capesize spot rates stay at or above $15,000 per day.
