Shares in John Fredriksen’s Golden Ocean made a fast start in Oslo today after Vale signalled it is poised to return some lost iron-ore capacity to the market.
Dry cargo rates have been battered in the aftermath of a Vale dam disaster this year which led to the shuttering of some facilities.
Now the miner has revealed legal measures in Brazil have the potential for 30 million tonnes of iron ore from the Brucutu mine to be reinstated soon.
Joakim Hannisdahl, an analyst at Cleaves Securities, said the move was finally some good news for the battered capesize market.
Golden Ocean shares hit a high of NOK 46.94 ($5.49) in early trading today and were up more than 5.5% at NOK 45.56 each at the time of writing.
It has helped eat into losses for the year, however, the bulker heavweight’s shares are still down more than 12% in 2019.
Analysts have been busy resetting their dry cargo forecasts after the dam breach sent rates spinning down during a seasonally slow period for the market.
However, analysts at DNB Markets are not ready to write off 2019 just yet.
Its team, led by Nicolay Dyvik, said 2019 looked "particularly interesting" as there should be a "considerable supply-side benefit" from preparations for IMO 2020.
Dyvik noted 1% of the fleet will be taken out to have their fuel tanks cleaned, with a further 0.6% assistance from scrubber fitting.
Adding in recoveries in volumes from Vale, Dyvik reiterated comments from last week that it was time to buy not sell when rates are $5,000 per day.
Capesize rates sat at $5,684 per day on Tuesday, according to the Baltic Exchange.
