Capesize bulkers sink to two-year low as China’s faltering real estate sector forces steel cutbacks

Spot rates for capesize bulkers dropped further on Wednesday as China’s hurting real-estate industry continues to put the brakes on turning iron ore into steel for buildings.

The Baltic Exchange’s Capesize 5TC, a spot-rate average across five benchmark routes, declined 14.7% during the day to reach $5,636 per day, its lowest point in more than two years, when it came in at $6,177 per day on 4 June 2020.

“Capesize rates are down again after a bump upwards yesterday with softer iron ore activity continuing to impact overall demand,” Jefferies analyst Omar Nokta wrote in a note on Wednesday.

View entirety: Tradewinds