Golden Ocean Group Limited
Dry Bulk Shippers Concerned: Iron Ore Stockpiled at Chinese Ports
When inventory levels are low, importers may restock, which would encourage iron ore shipments. However, when inventory levels are high, importers are likely to postpone new orders.
Newbuild Vessel Prices Sink Lower Again in June
Activity in the newbuild space is slowing down considerably, and faltering commodity demand in China is leading to negative sentiment toward the dry bulk shipping industry.
China’s Slumping Auto Sales May Be Bad News for Dry Bulk Shippers
Auto sales in China fell by 2.3% year-over-year in June to 1.8 million vehicles. China’s Association of Automobile Manufacturers has also lowered its estimate for auto sales growth in 2015.
China’s Real Estate Climate Index Inched Up Marginally in June
China’s real estate climate index has been below 100 since October 2011. A slowdown in the Chinese real estate industry is negative for the iron ore import trade as well as for dry bulk shipping.
China’s Manufacturing Purchasing Managers’ Index Still below 50
China’s final reading of the manufacturing purchasing managers’ index came in at 49.4. Factory activity in China has been below the 50 mark for the last four months.
China’s Manufacturing PMI Is the Lowest in 1 Year
China’s HSBC manufacturing PMI fell to 48.9 in April. This is the lowest level since April 2014. A reading below 50 indicates contraction.
Declining Iron Ore Port Inventory: Could It Be Positive?
Chinese ports’ iron ore inventory levels can impact purchasing decisions. Iron ore is the largest category of product shipment within the dry bulk shipping industry.
Falling Dry Bulk Orderbook: Positive for Dry Bulk Shippers
If the orderbook level continues to fall more from this point and demand continues to grow, we could see some life in dry bulk shipping rates and equities.