Dry bulk iron ore freight rates remain supported amid active enquiries
...
- India-China route witnesses fresh enquiries for Sep
- Rising demand for large vessel influences freights
Dry bulk iron ore freight rates remained supported this week amid active enquiries in the global market. Movement in the Indian Ocean and fresh inquiries for September shipments have helped maintain freight rates. Additionally, Australian miners are actively seeking cargoes, and the demand for larger vessels has further supported freight rates.
"China is increasingly purchasing iron ore from South America, particularly from Peru, Colombia, and Chile, while sourcing only small quantities from Venezuela and Iran," a source told BigMint.
China spot prices decrease w-o-w: China's spot price of iron ore fines (Fe 62%) was assessed at $93/tonne (t) CFR on 4 September, reflecting a w-o-w decrease of $8/t due to a liquidity squeeze and weak downstream demand ahead of the restocking season, despite a slight improvement in steel margins. Low-grade fines are expected to be the primary feedstock for mills in the current market conditions.
Meanwhile, Asia-Pacific Supramax dry bulk freight rates (50,000-55,000 t) for iron ore shipments from the east coast of India to China remained largely stable w-o-w at $12.8/t as of 4 September.
Route-wise freight market updates:
- India-China: Freight rates from the Indian Ocean to China have been recorded at $12.8/t, largely stable w-o-w. As per sources, a Supramax vessel has been booked from Paradip Port to Qingdao Port at a freight rate of $13.5/t, with the shipment scheduled on 6-15 September. Also, shipowners have received some fresh enquiries recently, which are under negotiation.
- Australia-China: Freight rates for Capesize vessels carrying iron ore from Western Australia to China were assessed at $11.29/t on 4 September, marking a rise of $0.29/t w-o-w. Australian miner Rio Tinto booked two vessels from Hay Point Port to Qingdao Port at around $10.70/t and $10.75/t. The shipment is scheduled on 17-19 September. In addition, BHP is also seeking cargoes for September, but enquiries are still under negotiation.
- Brazil-China: Freight rates for Capesize vessels carrying iron ore from Brazil to China increased this week. Rates for a shipment from Tubarao Port to Qingdao Port were assessed at $27.9/t on 4 September, inching up by $1.5/t w-o-w.
- South Africa-China: Capesize freights from Saldanha Bay Port to Qingdao port rose by $1.45/t to $21.45/t w-o-w. South Africa's iron ore exports rose by 41% to 4.91 million tonnes (mnt) m-o-m in August, 2024 compared to 3.47 mnt in July, as per BigMint's vessel line-up data.
