Jinwu Financial News | Pacific Shipping (02343)'s stock price weakened and remained low in the afternoon. As of press release, it was reported at HK$2.81, down 3.77%, with a turnover of HK$101 million.
According to the news, according to the HSBC Research and Development Report, China's iron ore imports increased by only 6% year-on-year in the first quarter of this year, but Brazil's iron ore exports increased 12% year-on-year. Freight demand will grow or slow in the next three quarters. Affected by China's reduction in iron ore imports in response to high inventories, the increase in ship capacity will exceed demand due to the easing of port congestion, increased ship navigation speed, and improvements in the Panama Canal shipping situation.
According to the bank, Pacific Shipping's stock price has risen 30% in the past month and is currently double the predicted market account ratio. The bank downgraded the investment rating of the stock to “reduced holdings”, and the target price was also lowered to HK$2.55. The increase in BDI driven by freight rates for Cape of Good Hope ships will slow down. There is a difference between the stock price in 2021 due to the increase in freight rates for lightweight extreme and lightweight vessels.