Bloomberg reported that a slump in the price of iron ore may be the catalyst for China to start importing more of the steelmaking raw material and for shipping costs to rise.

According to data from The Steel Index Limited, imported ore with 62% iron content fell to USD 129.40 a dry metric tonne in the port of Tianjin in northeast China, the first reading below USD 130 since December. Charter rates for Capesize vessels that haul the commodity gained 18% so far this week to USD 5,433 per day.

Mr Erik Nikolai Stavseth a shipping analyst at Arctic an Oslo based investment bank said that “Should the iron ore price continue to head south, we would expect an uptick in activity for Capes, as we see a restocking cycle imminent when the price becomes sufficiently attractive. We do see upside to the dry bulk market as we move over summer and shift to a more positive stance.”