Dry bulk iron ore freight rates exhibit mixed trends

• Global iron ore prices recover w-o-w
  
  
• Baltic index inches up d-o-d
  
  

Iron ore freight rates on global routes showed diverse trends this week. In the Indian Ocean, some fixtures pushed rates higher despite lower bunker prices. Meanwhile, Australian miners also actively booked tonnages which boosted freights.

Asia-Pacific Supramax dry bulk (50,000-55,000 t) freight rates for an iron ore vessel from the east coast of India to China rose by $0.5/tonnes (t) w-o-w to $13/t on 7 August.

Spot prices of iron ore fines (Fe 62%) in China were assessed at $102/t CFR China on 31 July, up $3/t w-o-w. This increase was fuelled by positive expectations in the seaborne market regarding the stability of crude steel production and a decrease in steel inventory, which in turn boosted downstream product prices. These factors collectively supported the rise in raw material prices.

Baltic index increases d-o-d: The Baltic Dry Index, tracking rates for ships carrying dry bulk commodities, rose d-o-d to 1,685 on 6 August against 1,677 the previous day.

Routes specifications:

• India-China: Freight rates from the Indian Ocean to China have increased to $13/t, up $0.5/t w-o-w, amid movements witnessed in the Indian Ocean this week, which drove rates higher. However, as per sources, a Supramax vessel was booked from Paradip Port to Qingdao at $12-12.5/t. The shipment period is 10-15 August.
  
  
• Australia-China: Freight rates for Capesize vessels carrying iron ore from Western Australia to China were assessed at $9.7/t on 7 August, a increase of $0.3/t w-o-w. As per sources, Australian miners BHP and Rio Tinto were seen actively booking cargoes for end-August shipments.
  
  

• Brazil-China: Freight rates for Capesize ships carrying iron ore from Brazil to China declined this week. Rates for a shipment from Tubarao to Qingdao were assessed at $24/t on 7 August, down $0.7/t w-o-w. Absence of inquiries was due to shipowners quoting higher offers for September delivery, sources informed BigMint.
  
  
• South Africa-China: Capesize freights from Saldanha Bay to Qingdao dropped $0.6/t w-o-w to $17.6/t. Lack of inquiries amid weak sentiment pressured freight rates on this route.