Cape market ‘on fire’: Fearnleys
Norwegian brokers Fearnleys describe the capesize sector as “on fire” at the moment in its latest weekly report.
“Weather delays in China and also significantly increased Brazil activity adding fuel to a market segment on fire,” Fearnleys stated, adding how currently it was “happy days” for capes. As well as improving iron ore demand and prices, Fearnleys reported coal transaction volumes have been higher than predicted.
“Forward pricing at USD 18.00 for C3 and USD 8.00 for C5 basis January loading gives reason for faith entering a normally challenging period. Average earnings coming in at USD 26,600, best so far in 2017 and up 18 pct w-o-w,” Fearnleys stated.
Nevertheless, the broker pointed out that the gap between physical expectations and FFAs is still prohibitive and consequent period activity has been limited. A notable exception, the broker observed was 2016-built, 170,000 dwt bulker delivering China prompt and fetching $17,000 a day on a 13-month contract.