Shipping stocks fall as Jefferies downgrades on soft steel, iron ore demand

Eagle Bulk Shipping

26/09/2022 13:11

** Shares of shipping cos Diana Shipping  DSX.N , Safe
Bulkers  SB.N  and Golden Ocean  GOGL.O  slide in premarket as
Jefferies downgrades their rating to "hold" from "buy" citing a
decline in dry bulk charter rates
    ** DSX and SB fall 3% and 2.5%, respectively, while GOGL
drops ~7%
    ** Jefferies sees softer demand for steel and iron ore as
global steel markets are under pressure, with the decline in
Chinese output adding to woes
    ** Says Cape segments (largest vessel size) affected the
most, but is trickling down to other vessel classes too
    ** Brokerage, however, sees resurgent coal demand for
several quarters due to ongoing tight energy supplies in
Northern Hemisphere
    ** Cuts price targets for Genco Shipping  GNK.N  and Star
Bulk  SBLK.O , sending their shares down between 0.8% and 1.6%
    **  DSX.N  and  GNK.N , however, trading in low volumes
    ** The Baltic Exchange's main sea freight index  .BADI  had
however gained for four weeks till Friday's close, supported by
demand for capesize vessels  urn:newsml:reuters.com:*:nL4N30U20V
    ** Breakwave dry bulk shipping ETF  BDRY.P  down 2.6%
 (Reporting by Shristi Achar A)
 ((Shristi.AcharA@thomsonreuters.com;))