Capesize spot rates slip further back

A slide in capesize spot rates extended today to continue what has been a quiet start to this week.

Rates lost over 3% to $11,557 per day, with brokers noting a shortage of fresh cargoes out of South America.

Glenn Lodden, an analyst at ABN AMRO, says the slide comes at a time when charterers are “staying on the fence”.

Clarksons Platou Securities analysts Frode Morkedal and Herman Hildan said capesize rates remain under some pressure due to a rather quiet market in both the Atlantic and Pacific basins.

The present market compares with a peak of $14,517 per day in late September and an early October high of over $14,000 per day.

Erik Nikolai Stavseth of Arctic Securities says capesize rates remain in the $10,000 to $12,000 per day range in which “means at least banks are seeing some cash”.

“The positive sentiment around steel seen over the past month is in retreat as steel mill margins remain negative due to higher coking coal prices and we are still on the foot where we would be cautious on dry bulk near-term,” he added.

Panamax rates continued to progress, with Bjorn Kristian Roed of Danske Bank noting the market is being supported by Chinese thermal coal imports. “We are increasingly bullish on the rate development for this vessel type,” he said.

“Further support to the panamax/supramax segment is expected to be driven by the upcoming peak season of US soybean exports.”