Sluggish growth in the U.S. economy this summer raised fears of an impending recession, but also raised hopes that one can be avoided. After six months of declines, gross domestic product (dap) grew 0.6 percent, slightly more than forecasters had expected. This suggests that a "soft landing" path, albeit narrow, is still possible, one that would allow policymakers to cool heat demand without stopping the recovery altogether. There are still plenty of economic headwinds to contend with. The housing sector has experienced a sharp downturn as inflation has eroded households' purchasing power and mortgage rates have soared to their highest levels since 2002. Meanwhile, the European Central Bank raised interest rates again. In just three months, the European Central Bank has raised interest rates at the fastest pace in its history. The ripple effect of the Federal Reserve's rate hikes has hurt other currencies, particularly those of Japan, China and India, making it harder for foreign borrowers holding dollar debt to repay loans. Michael Gapen, an economist at Bank of America, said, "At this point, it's not hard for the economy to fall into recession." Next week we will be waiting for the Fed statement. Their news may affect the economic outlook and future markets.

Dry bulk cargo

Iron ore prices have continued to fall sharply amid growing concerns about demand from the global steel industry. The benchmark price of the steelmaking ingredient fell to $82.45 a tonne on Thursday, the lowest since May 2020. Several agencies have warned that the outlook for China's property market and economic development could be negative for the commodities sector. According to Huatai Futures in China, the peak season for the steel industry is coming to an end and the recovery is not as strong as expected. In addition, steel inventories in the country are expanding due to winter production constraints and energy problems in Europe.

Capesize: (capesize)

Overall, it was a moderate week with slow activity. The policy direction articulated by China at the October conference also added to the negative attitude of the dry goods industry. Seasonal recovery expectations and weak steel demand in China are affecting the outlook for the Capeseed bulk carrier market. By the end of the week, round-trip Pacific fares were down to $11,250 per day. Meanwhile, Brazil's Vale produced 89.7 million tons of iron ore in the third quarter, up 21%. The rebound was expected to minimize further market declines ahead, but did not translate into higher freight rates this week. T/A fares are stable at around $20,750 / day. Market conditions are expected to be volatile.

Panamax/Kamsarmax: (Panamax/Kamsarmax:)

The Panamax bulk carrier market is showing strong momentum due to fresh soybean grain exports from the United States and continued demand for capacity in Southeast Asia and South America. While exports have steadily improved, the decline in the Mississippi River is a cause for concern. As a result, a significant portion of cargo traffic passes through the Pacific Northwest rather than the Atlantic Ocean. As T/A fares drop to $16,600. Indonesian coal sales are unchanged, but new sales are falling, while India is suffering from a lack of economic activity due to this week's Diwali celebrations. The Pacific-India route dropped to $15,950 a day, while the Pacific round trip price was $16,450 a day.

Easy/Ultramax: (Supramax/Ultramax:)

The ultra-mobile bulk carrier market remained stable, with weakness in the Pacific offset by strong activity in the Atlantic. The T/A route dropped to around $20,700. In the Pacific, there is some downward pressure on imports of new cargo from the Pacific Northwest, affected by the transition of Panamanian bulk carriers. Round-trip prices closed at $11,645 per day. The potential extension of Ukrainian grain exports has also given Asian wheat importers action and interest. We may see an increase in activity in the region. F/H routes are slightly reduced to $24,300 / day.

Handysize (Handysize:)

The Pacific market opened strongly, but at the end of the week, the market developed more slowly due to the emergence of large spot capacity, and the increase in empty vessels was due to the decrease in the number of enquiries across Asia. Intra-pacific fares are reduced to $11,185 / day, while round-trip fares are $12,000 / day. Meanwhile, activity in the Atlantic Ocean was muted this week due to a decline in trade in the American Gulf.

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