A close examination of recent spot chartering activity shows that 125 dry bulk vessels were chartered in the spot market last week. This is 11 less than were chartered during the previous week. Last week"e;s dry bulk spot chartering activity included the chartering of 41 capesize vessels (the same amount as the previous week), 54 panamax vessels (8 less than the previous week), 20 handymax vessels (2 more than the previous week), and 10 handysize vessels (5 less than the previous week). Capesize rates declined by the largest amount last week, but rebounded on Friday which is very encouraging. Capesize rates ended last week averaging $9,721/day, a decrease of $1,484 (13%) from a week ago. Panamax rates ended last week averaging $8,016/day, a decrease of $312 (4%) from a week ago. Supramax rates ended last week averaging $9,052/day, a decrease of $343 (4%) from a week ago. Handysize rates ended last week averaging $7,089/day, a decrease of $106 (1%) from a week ago.

Looking at dry bulk cargo trends in specific detail, a particularly large amount of South American grain cargoes and Australian iron ore cargoes surfaced in the market again last week. In total, 22 South American grain cargoes came to the market last week. This was 13 less than were chartered during the previous week but still a very large amount. The grain cargoes will be shipped to various buyers around the world. In addition, 17 Australian iron ore cargoes surfaced in the market last week. This was 4 less than surfaced during the previous week but still a very firm amount. The Australian iron ore cargoes will be shipped to various buyers in Asia.

In China, steel production remains at a very robust level which remains very encouraging for the dry bulk market (and in particular capesize rates). The average price of 3.0mm hot rolled coil in China is now 3,490 yuan/ton ($560), just 5 yuan less than a week ago. Chinese steel production has remained at a very robust level, and it is encouraging that Chinese steel prices have been able to remain basically flat. It is also encouraging that Chinese steel stockpiles have continued to decrease. Steel stockpiles in China now total about 15.4 million tons, 600,000 tons (-4%) less than a week ago. Steel stockpiles have now fallen for eleven straight weeks and are down by 3.7 million tons (-19%) on a year-on-year basis.

Chart is attached (data is in million tons).