MID-SHIP Report: Dry Bulk Freight Market – Feb 23, 2024

February 23, 2024

Last Wednesday saw a notable surge in trade activity as both China and Brazil re-entered the market following the conclusion of the Lunar New Year and Carnival festivities. This resurgence has led to significant breakout in cape market performance, with prices soaring from approximately $18,800 two weeks ago to the current level of $26,000. The return of miners to the market across both basins, driven by sustained robust ore prices, has contributed to this upward momentum. Despite facing challenges such as elevated inflation and interest rates, market dynamics remain resilient, with Capes experiencing substantial gains, potentially signaling positive trends ahead. The Capesize index was up 355 points to 3,145 today with front haul ore trade Brazil to China up $0.53 to $26.18. China’s decision to lower interest rates to support the struggling real estate market is viewed positively, although its impact remains to be seen in the coming months.

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