China could increase iron ore imports by up to 7.5 per cent according to the Baltic and International Maritime Council.
BIMC is the world’s largest association of ship owners.
The association is planning on a 1.1 percent increase from 2012 with a strong steel demand for housing, infrastructure and machinery, combined with the increasing cost of lower quality domestic ore.
BIMC estimates China’s 2012 iron ore imports at 730 million tons, while expecting the figure will reach 785 million tons in 2013.
In September, China imported the largest amount of iron ore since the record-high imports in January 2011.
The demand driver for iron ore imports is expected to be the continued economic development in China fuelled by the 1 trillion yuan infrastructure investment plans by the Chinese government.
In turn this will be fuelled by the higher demand for power generation in China and India.
Fundamentals of the dry bulk segment are known to be improving on both supply and demand side,
The tonnage overhang should reduce with global GDP improvement and demand for dry bulk tonnage is also set to increase driven by surging demand for iron ore and coal.
BIMCO also notes the Chinese iron ore content has declined since early 2008, which is good news for the dry bulk market, as it implies that the real costs of using domestically produced iron ore have increased.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 1 hour ago.
BIMC is the world’s largest association of ship owners.
The association is planning on a 1.1 percent increase from 2012 with a strong steel demand for housing, infrastructure and machinery, combined with the increasing cost of lower quality domestic ore.
BIMC estimates China’s 2012 iron ore imports at 730 million tons, while expecting the figure will reach 785 million tons in 2013.
In September, China imported the largest amount of iron ore since the record-high imports in January 2011.
The demand driver for iron ore imports is expected to be the continued economic development in China fuelled by the 1 trillion yuan infrastructure investment plans by the Chinese government.
In turn this will be fuelled by the higher demand for power generation in China and India.
Fundamentals of the dry bulk segment are known to be improving on both supply and demand side,
The tonnage overhang should reduce with global GDP improvement and demand for dry bulk tonnage is also set to increase driven by surging demand for iron ore and coal.
BIMCO also notes the Chinese iron ore content has declined since early 2008, which is good news for the dry bulk market, as it implies that the real costs of using domestically produced iron ore have increased.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 1 hour ago.