It notes the softening of the market from nine-month high of $20,000 per day was no surprise and it believes the correction in earnings is temporary.
In its weekly dry cargo report the shipbroker noted China has imposed restrictions on steel production from 20 August to 4 September to curtail pollution for the 3 September ceremony which marks 70 years since the end of the conflict.
“The Chinese government has invited dignitaries from all major countries, and it is anxious to appear at its best, which entails keeping air pollution at a low,” Braemar ACM's Marc Pauchet said.
“Ahead of the closures, low iron ore inventories caused steel mills to rush to purchase large amounts of iron ore. This occurred at a time when Capesize rates had been propped up by a series of typhoons and storms that increased congestion.”
Capesize spot rates sat at a little over $12,000 per day on Tuesday, the lowest level in several weeks.
