Dry bulk iron ore freight rates recover, except Australia

• Improved iron ore buying from China supports freights, spot prices
  
  
• Export trade activities from India yet to pick up
  
  

Dry bulk iron ore freight rates have shown recovery this week as market sentiment in China has been improving. Robust trade activities have kept freight rates supported, owing to improvement in iron ore demand from China kept portside prices supported. Meanwhile, Australian miners are actively booking large vessels. In addition, market participants from the Indian Ocean are cautious on freight rates clarity keeping trade activities weak.

Iron ore (Fe 62%) fines spot prices rose w-o-w by $5.3/tonne (t) to $107.55/t CFR China on 10 April amid continuous recovery in steel margin. The trade volume increased as buying interest and market sentiments have improved after holidays. As per reports, steel sales in China rose recently, even with elevated portside inventory levels.

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 recorded a hike of $0.5/t this week to $13.5/t on 10 April, as per BigMint's assessment.

Route specifications:

• India-China: Freight rates from the Indian Ocean to China have increased this week. Increase in demand from China is witnessed, as recovery in steel production and rise in portside iron ore prices have supported freight rates. Enquiries are under negotiation as ship brokers have quoted higher freight rates, resulting in lower trade activities on bid-offer disparities. "Market has been quiet lately on account of various holidays. As in China there were some festive holidays last week and now Eid is being observed in many other Asian countries. Hence, we have seen limited enquiries," a ship broker stated.
  
  
• Australia-China: Major Australian miners BHP, FMG and Rio Tinto have been seen booking the large vessels at the lower levels for the shipment period in the end-April dates. Notably, regular enquiries and tonnage demand for the key route have weighed on freight rates.
  
  
• Brazil-China: Freight rates from the Pacific region were slightly up w-o-w on sluggish trade activities. The fresh enquiries for the key route have kept freight rates robust. Notably, some enquiries are under negotiation might get fixed in near future.
  
  
• South Africa-China: In this week, an enquiry was witnessed to be fixed for this keyroute keeping freight rates supported at same levels. Lacklustre fresh enquiries for the route were recorded.