Dry bulk iron ore freight rates to China inch up except from India
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- Inquiries for large vessels rise w-o-w
- Recovery seen in buying interest from China
Dry bulk iron ore freight rates for a few routes remained supported this week. Notably, Chinese buyers remained cautious about booking iron ore from India amidst the onset of monsoons which may slightly hamper July-August 2024 shipments due to increased moisture content in cargoes, a shipbroker informed. Additionally, Chinese buyers are more focused on importing high-grade raw materials.
Spot prices of iron ore fines (Fe 62%) remained largely stable w-o-w at $106/t CFR China on 19 June, 2024. As per reports, a significant number of trades were reported on the spot market but prices remained constrained. Existing landed margins supported procurement of medium-grade fines cargoes.
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 $ 0.24/t this week to $14.1/t on 19 June, as per BigMint's assessment.
Route-wise freight specifications:
- India-China: Freight rates from the Indian Ocean to China remained rangebound this week. BigMint notes, amid absence of trade activities from eastern Indian ports to China. This week, shipowners have been idle due to weak demand from China for low-grade material.
- Australia-China: Australian mining company Rio Tinto is actively seeking tonnages for early July shipments at levels of $10.7/t. However, fresh inquiries remain absent for the route.
- Brazil-China: Inquiries in the Pacific region have been witnessed this week. Freight rates have increased due to inquiries in the market although negotiations are on due to bid-offer disparities. Notably, a Capesize vessel was seen booked for shipments for mid-July at freight rates of around $27/t.
- South Africa-China: Rates from Saldanha Port to Qingdao have risen this week. Meanwhile, a Capesize vessel was heard recorded booked for early July shipment at $18.5/t.