Increased Brazilian iron ore output and strong Chinese demand have shipping analysts predicting a boost to capesize spot rates for the latter half of the year.
Vale reported a record jump in its second quarter production, reaching 96.8 million metric tonnes, and looks set to meet its targeted output of 390 million metric tonnes for 2018.
Vale is “clearly anticipating material ramp up in the back half of the year,” Stifel analyst Benjamin Nolan told TradeWinds, adding he is expecting a “4% to 5% increase in iron ore tonne mileage” during that time period.
