Dry bulk iron ore freight rates remain largely stable w-o-w
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Dry bulk iron ore freight rates remained largely stable this week due to lower demand. Notably, less fresh inquiries in the Indian Ocean and limited demand have kept freights under pressure. Meanwhile, Australian miners are actively seeking cargoes for early October shipments, which have kept freight rates on this route supported.
Meanwhile, Asia-Pacific Supramax dry bulk freight rates (50,000-55,000 tonnes) for iron ore shipments from the east coast of India to China fell by $0.09/tonne (t) w-o-w to $12.11/t as of 18 September.
China's spot price of iron ore fines (Fe 62%) was assessed at $92/t CFR on 18 September, up by $2/t w-o-w. Market participants are back from the three-day Mid-Autumn holidays, but trading activities are largely dull considering the uncertainties in the market.
Route-wise freight market updates:
- India-China: Freight rates from the Indian Ocean to China have been recorded at $12.11/t, down by $0.09/t w-o-w. According to shipowners, market participants were largely out of action amid lacklustre demand and less trading activities due to Ganesh Chaturthi and Eid Milad festivals.
- Australia-China: Freight rates for Capesize vessels carrying iron ore from Western Australia to China were assessed at $11.67/t on 18 September, reflecting a w-o-w decrease of $0.05/t. According to sources, major Australian miners Rio Tinto, BHP and FMG are seeking tonnages for October shipment keeping freight rates at similar levels.
- Brazil-China: Freight rates for Capesize vessels carrying iron ore from Brazil to China declined this week. Rates for shipments from Tubarao Port to Qingdao Port were assessed at $26.43/t on 18 September, down by $0.78/t w-o-w. As per sources, lack of inquiries have been witnessed on the route keeping freight rates lower. Market participants are focusing more on the impact of the recent typhoon on the Pacific market rates.
- South Africa-China: Capesize freights from Saldanha Bay Port to Qingdao Port dropped slightly by $0.62/t to $20.08/t w-o-w. Slow activity and limited inquiries on this route kept freights largely stable this week.
