A 14% rise for capesizes drove the continued improvement as the overall market climbed for the 10th successive session Thursday. Friday saw a further 4% gain to 1,048 points.
The 1,009 points recorded on the BDI is the highest in seven months, analysts note.
Capesizes hit $12,700 daily on Thursday, helped by stronger activity out of Brazil, sources say. They improvement extended on Friday.
Lorentzen & Stemoco says higher iron ore spot prices have boosted shipments as Chinese mills have chosen to import now rather than risk higher commodity prices.
“However, forward prices have remained stagnant with Q4 still being traded at $44-45 per ton, meaning forward prices being in backwardation.
“Unless forward prices move upwards to a contango price structure, Chinese steel mills and traders will become disinterested in continuing with the import fervor, and will stop fixing more vessels into August,” the shipbroker said in a report Friday.
Data from SSY Futures showed bids on combined third and fourth quarter capesize contracts to have raised to $13,075 per day yesterday.
Climbs in the panamax, supramax and handysize seectors were more modest in the 2% to 3% range.
