PACIFIC BASIN (02343) saw its shares rise more than 4% during afternoon trading. At the time of writing, the stock was up 4.43%, trading at HK$3.3 with a turnover of HK$49.38 million. The positive movement follows news that the Simandou iron ore project in Guinea has officially commenced production. An industrial report from Xingye Securities noted that the start of production at Simandou, along with increasing exports of bauxite, is expected to gradually extend the shipping distances for dry bulk carriers, thereby boosting demand for vessel capacity. The report also suggested that a conclusion to the conflicts in Ukraine and Gaza could further increase dry bulk shipping demand during post-war reconstruction. Changjiang Securities highlighted Pacific Basin as a leader in minor bulk shipping, indicating that the industry is approaching a cyclical low point and the company is well-positioned for significant earnings recovery. Huachuang Securities pointed out that the current cycle of interest rate cuts is likely to stimulate growth in demand for physical commodities. Additionally, the Simandou iron ore project is expected to bring a substantial increase in cargo turnover for larger vessels. Given the interconnected nature of the large and small vessel markets, a recovery in the large vessel segment is anticipated to positively influence the smaller vessel market.