DJ MARKET TALK: Iron Ore Demand Not Necessarily Weak-ICAP
0428 GMT [Dow Jones] ICAP Shipping says that argument that spot freight rates' and
forward freight agreements' collapse in recent weeks is a function of weak iron ore
demand in China doesn't necessarily hold water. Broker notes that Brazilian exports
rose 28% on year to 29.23 million tons in September, up almost 3 million tons on August.
"Though we cannot yet be sure of the destination of these ore exports, even if the
increase was wholly the effect of an increase in countries imports excluding China,
Chinese imports of iron ore from Brazil will still be around 9 million tons." Adds
that different routes (ie not Brazil-China) would negatively affect freight rates but
that "the overall reasoning that the freight rates are falling due to a dramatic
fall in demand seems increasingly doubtful." Baltic Dry Index has stabilized in
recent sessions, closing Monday at 2,992, down 0.3%
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