BIMCO's latest forecasts for dry bulk prospects next year suggests China's hunger for iron ore and coal will be stronger.
BIMCO's chief shipping analyst Mr Peter Sand said that "As we are heading into 2013, iron ore demand from the world's largest consumer, China, is likely to provide a solid lift in demand alongside coal imports in Asia. BIMCO forecast Chinese iron ore imports to grow at a rate of 7.5% in 2013 up from 6.4% in 2012, driven by higher steel demand and the cost of the lower quality domestic ore."
BIMCO expects that the monthly imports of iron ore in China will reach an average of 61 million tonne in 2012. That number is expected to be higher next year with a projection of 65 million tonnes of iron ore monthly.
BIMCO's 2012 estimate is 730 million tonnes for Chinese iron ore imports or 6.4% YoY.
For 2013, BIMCO expects that China will increase imports to 785 million tonne up by 7.5% YoY.
It said that translated into number of vessels, the iron ore import growth this year gives work to 39 cape size vessels, with work for another 49 cape size vessels in 2013.
As it stands, the Chinese appetite for iron ore ensures that cape size earnings should stay above an average of USD 9,000 per day in 2013.