Capesize

17950

Sep-17
0.00 0.00%

Panamax

11175

Sep-17
225.00 2.05%

Iron Ore

76.5

Sep-17
0.85 1.12%

Sing 380

278.25

Oct-17

Coking Coal

208

Sep-17
0.00 0.00%

Nola Urea

212.5

Sep-17
0.00 0.00%

FIS Market Observations – October 2017


The dry bulk commodity market may have passed its summer peak in terms of activity and margin strength, but the indicators suggest that, though there will be some correction in the coming quarter, there is less chance of a full-blown bear market.

A combination of buoyant iron ore imports – expected to exceed 1.1bn tonnes in 2017 – with lower utilisation of low grade materials and support for steel margins suggests stabilisation and resilience rather than a collapse.

China’s steel mills are conservative on Q4 consumption and are keeping low inventory levels compared to last year however the market remains susceptible to short-term speculation as well the impacts of central policy.

In the freight market a period of low newbuilding orders has coincided with the iron ore demand surge and rates will continue to be healthy into the end of the year.

The coking coal market has seen domestic China physical prices continue to improve and with the derivative market also correcting to further narrow its divergence with physical, with tight supply supporting prices into the last quarter.

To read the full report click here: fismonthlyreportoctober_final.