Dry bulk iron ore freight rates to China exhibit diverse trend w-o-w

• Spot iron ore prices in China inch down w-o-w
  
  
• Inquiries from Indian players remain subdued
  
  

Dry bulk iron ore freight rates exhibited diverse trend this week. Notably, combination of deteriorating sentiment and continued pressure on freight derivative rates during Asian trading hours. A lack of iron ore cargoes and sluggish seaborne coal trading contributed to this downtrend, with a particularly thin cargo list in the Pacific region. Rates on the Brazil-China route have inched up amid presence of inquiries.

Spot prices of iron ore fines (Fe 62%) dropped by $2/t w-o-w to $104/t CFR China on 26 June, 2024. Notably, drop in iron ore spot prices are driven by weak buying interest and low demand. Steel mills are primarily purchasing on a need-basis as finished steel demand shifts to off-peak periods. Mills are increasingly procuring from the seaborne market and selling existing port cargoes due to improved import margins.

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 inched down by $ 0.2/t this week to $13.9/t on 26 June, as per BigMint's assessment.

Route-wise freight specifications:

• India-China: Freight rates from the Indian Ocean to China declined this week amid lack of trade activities from eastern Indian ports to China, BigMint noted. Additionally, shipowners are inactive due to sluggish demand from China for low-grade material and approaching monsoon season.
  
  
• Australia-China: Australian major mining company, Rio Tinto, recorded booking a capesize vessel from Dampier port to Qingdao for mid July shipment. However, fresh inquiries remain absent for the route.
  
  

• Brazil-China: Inquiries in the Pacific region have been witnessed this week increasing freight rates for the route. Notably, a Capesize vessel was seen booked for shipments for mid-July at freight rates of around $27/t. Additionally, few more inquiries were seen from Tubarao port to Qingdao port for the third week of July shipment. However, inquiries are not fixed yet, they are still under negotiation.
  
  
• South Africa-China: Scant movement in the South African market was seen this week, resulting in absence of any fresh fixtures in the market.