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Iron-Ore Ships Rebound as China Spends $158 Billion: Freight

Iron-ore ships are poised to earn more than operating costs for the first time this year as rates rally on speculation Chinese steel mills will accelerate imports because of a 1 trillion-yuan ($158 billion) building program.

Capesizes, each carrying 160,000 metric tons of ore, will earn $12,500 a day in the fourth quarter, according to the median of eight analyst estimates compiled by Bloomberg, compared with $4,469 on average since the end of June as assessed by the Baltic Exchange. Investors may profit by buying forward freight agreements, traded by brokers and used to bet on future costs, which are seen at $9,075. Ship owners need $7,437 to pay overheads including crew and repairs, a London-based unit of Moore Stephens LLP advising the industry estimates.