China’s crackdown on polluting heavy industries this winter needs to be watched by dry bulk owners in the coming months, the chief operating officer of Hong Kong’s Caravel Group has warned.
Angad Banga stars in the latest episode of Splash TV. Banga was one of the all-star line up at last month’s dry bulk session of the Maritime CEO Forum. China’s drive to clean up the air in some of its biggest cities has seen Beijing shutter a number of steel mills this winter, something that could harm bulker freight rates, the Caravel executive warned.
“Capacity shutdowns of steel mills around eight cites in China will need to be watched,” Banga said, adding the move could lead to a softening in rates in the short term.
Overall, however, Banga was in optimistic mood when quizzed by the session’s moderator, Tim Huxley from Mandarin Shipping. In the video clip carried below, Banga elaborates on the improvement of underlying demand fundamentals led by China. While in 2016 this had been led by iron ore, this year the demand growth picture has spread to include coal, grain and bauxite, adding momentum to freight rates in every bulker segment, Banga said.
The Maritime CEO Forum took place in the Foreign Correspondents’ Club in Central, Hong Kong with sessions on tankers, bulkers and crewing. The event was sponsored by Anglo-Eastern, Cobham, Dualog, DVB Bank, Liberian Registry, RightShip, Veritas Petroleum Services, and V.Ships Agency.
The next Maritime CEO Forum is scheduled to take place at the Fullerton Hotel in Singapore on March 13.