Dry bulk iron ore freights exhibit diverse trend w-o-w amid rise in iron ore futures

• Australian miners active in booking cargoes
  
  
• Sluggish demand keeps Indian Ocean quiet
  
  

Dry bulk iron ore freight exhibited mixed trends this week. Rise in iron ore futures prices limited inquiries for the material in the global market. However, major Australian miner were heard booking cargoes and thus regular inquiries from them for larger vessels were forthcoming. However, movement of ships was absent in the Indian Ocean due to sluggish demand.

According to BigMint's assessment, Asia-Pacific Supramax dry bulk freights (50,000-55,000 tonnes) for iron ore shipments from the east coast of India to China remained stable w-o-w to $12.5/t on 20 November.

Factors influencing freights this week

• Baltic index increase w-o-w: The Baltic Dry Index (BDI) was recorded at 1,785 points on 18 November, up by 290 points w-o-w. Notably, the Baltic Capesize Index stood at 3,229 points, up by 913 points w-o-w. However, the Baltic Supramax Index declined to 1,019 points, down 60 points w-o-w.
  
  
• China's iron ore spot prices rise w-o-w: China's spot prices of iron ore fines (Fe62%) were assessed at $102/t CFR on 20 November, up by $1/t w-o-w, driven by positive macro-economic developments. Market sentiments improved following new real estate announcements, including incentives for state-owned enterprises, to buy small commercial housing units in Guangzhou and reduced transaction taxes. The NDRC also reaffirmed its commitment to annual economic growth targets, boosting optimism further.
  
  
• DCE futures up w-o-w: Iron ore futures on the Dalian Commodity Exchange (DCE) for the January 2025 contract rose by RMB 12/t ($2/t) w-o-w to RMB 774.5/t ($108/t) on 20 November. On a d-o-d basis, futures prices remained stable against yesterday's RMB 776/t ($108/t).
  
  

Route specifications:

• India-China: Freights from the Indian Ocean to China were recorded at $12.5/t, remained unchanged w-o-w. According to shipowners, "The market is soften, rarely any iron ore cargoes is seen in the market due to higher iron ore prices. Some market participants are doing coastal movements."
  
  
• Australia-China: Freights for Capesize vessels carrying iron ore from Western Australia to China were assessed at $9.85/t on 20 November, down by $0.38/t w-o-w. According to sources, major Australian miners Rio Tinto and BHP were seen actively booking cape vessels from a Western Australia port to Qingdao Port at around $9.85-10/t. The shipment is scheduled for early December.
  
  

• Brazil-China: Freights for Capesize vessels carrying iron ore from Brazil to China inched up this week. Rates from Tubarao to Qingdao Port were assessed at $24.75/t on 20 November, an increase of $0.43/t w-o-w. As per sources, lack of inquiries on the route was seen keeping freights stable.
  
  
• South Africa-China: Capesize freights from the Saldanha Bay Port to Qingdao Port inched up by $0.2/t w-o-w to $18.7/t. Lack of inquiries have limited movement of ships on the route.