Dry bulk iron ore freight exhibit mixed trends post-Chinese holidays

• Demand for Capesize vessels remains dull
  
  
• New inquiries in Indian Ocean support rates
  
  

Dry bulk iron ore freights exhibited mixed trends this week post-Chinese return from holidays. In addition, rates have been hiked for smaller vessels due to fresh inquiries in the Indian Ocean. Also, freights have declined for larger vessels due to lack of inquiries as the Chinese market has recently resumed, keeping iron ore demand lacklustre. Demand for capesize vessels remained dull.

Factor's influencing freight rates-

• Decline in China's iron ore spot price: China's spot price of iron ore fines (Fe 62%) was assessed at $105/t CFR on 9 October, inched down by $3/t w-o-w amid expectations of bearish demand. End-users delayed procurement to await clearer market directions. Expectations from the post-holiday period were optimistic, as mills have resumed operations, but actual demand was slow. Returning participants may need a few days to find the market's support and determine resistance levels.
  
  
• Baltic index record one month low on decline in Capesize rates: Baltic index (BDI) record at 1,928 points on 7 Oct as compared to 1,941 recorded on 9 Sept. Notably, Baltic Capesize Index dropped by 113 point m-o-m by recorded at 3,243 points against 3,356 point. In addition, Baltic Supramax Index remained largely stable at 1,258 point on 7 October.
  
  

Meanwhile, according to BigMint's assessment, Asia-Pacific Supramax dry bulk freight rates (50,000-55,000 tonnes) for iron ore shipments from the east coast of India to China increased by $0.25/tonne (t) w-o-w to $13.25/t as of 9 October.

Route-wise freight market updates:

• India-China: Freight rates from the Indian Ocean to China have been recorded at $13.25/t, up by $0.25/t w-o-w. According to shipowners, a supra vessel is booked from Dhamra Port to Qingdao Port at $13.3/t for end-October shipment. Some fresh inquiries are under negotiation which is supporting freight levels.
  
  
• Australia-China: Freights for Capesize vessels carrying iron ore from Western Australia to China were assessed at $10.4/t on 9 October, dropping by $1.27/t w-o-w. According to sources, major Australian miners Rio Tinto and BHP were seen booking vessels at lower freight levels of around $10.05-10.10/t, for end-October shipment period.
  
  

• Brazil-China: Freights for Capesize vessels carrying iron ore from Brazil to China dropped this week. Rates for shipments from Tubarao Port to Qingdao Port were assessed at $26.9/t on 9 October, inching down by $1.2/t w-o-w. As per sources, absence of activities for the route have pressurised freight levels. No fresh inquiries were seen post-Golden Week holidays.
  
  
• South Africa-China: Capesize freights from Saldanha Bay Port to Qingdao Port inched down by $0.9/t to $20/t w-o-w. Trading activities and fresh inquiries were absent for the route. These factors kept freights at similar level this week.