The shipping market stands to benefit from falling oil prices, as fuel oil costs will diminish as well, while the dry bulk segment in particular could enjoy further tailwinds. In its latest weekly report, shipbroker Xclusiv said that “Asia’s seaborne imports of metallurgical coal fell to their lowest level in three years in February, signaling a decline in freight demand for bulk carriers. The primary reasons behind this slump are lower steel production in China and India combined with government interventions in raw material imports. India’s government-imposed quotas on coke imports and increasing steel imports from South Korea and China have reduced domestic steel output, leading to a drop in coking coal demand. Although these restrictions may be temporary they have already curtailed the demand for bulk carriers transporting coking coal, affecting freight rates in the region. Similarly, China’s metallurgical coal imports fell to an 18-month low, with overland imports from Mongolia increasing and reducing reliance on seaborne shipments”.
Source: Xclusiv
Meanwhile, “adding further complexity, China imposed a 15% tariff on U.S. coking coal imports, effectively…