Yes. With the annual iron ore contract negotiations coming up BHP, RTP and RIO were playing games with the Chinese steel producers and cutting back on production. This ten-year contract helps to restore some confidence to the supply outlook and of course all iron ore is shipped via dry bulk ships.
The Chinese demand for iron ore only continues to rise. If you consider the infrastructure demands in China, I don't see how their economy can continue to grow, without increased steel production. Also, India has traditionally been an iron ore exported, but the government has raised taxes on iron ore exports in an effort to increase supply for the domestic market. If the steel industry in India really picks up steam, India could become an importer.
It's important to stress the EGLE is in Handymax and Supramax sector so they won't be taking the iron ore in the BHP / Baosteel contract (guys with bigger ships will get some of that).
But I agree that contract did a great deal to restore positive sentiment re the entire sector. The Baltic Dry Index is up again- not as much as yesterday but still big. Also Forward prices are above the spot so that's another sign that freight traders believe that commodity movements have a future.
EGLE benefits greatly from such sentiment even through their revenues are pretty much set for the next few years.
Obviously I am long EGLE (from way back) and like others, regret that I did not buy more on the recent dip.