Dry bulk iron ore freights fall w-o-w; Australia bucks trend

• Spot iron price drops in China w-o-w
  
  
• Baltic index for Supramax vessels dips
  
  

Dry bulk iron ore freight rates decreased this week due to limited inquiries. Reduced demand from Chinese steel mills impacted iron ore prices, leading to a decline in cargo volumes and putting pressure on freight rates. A lack of fresh inquiries in the Indian Ocean and weak sentiment at portside have also contributed to the lower freight rates. However, Australian miners are actively seeking cargoes for early October shipments, which has caused freight rates to rise on that route.

• China spot prices decrease w-o-w: China's spot price of iron ore fines (Fe 62%) was assessed at $90/t CFR on 11 September, reflecting a drop of $3/t w-o-w amid ongoing weak demand fundamentals and lacklustre steel production recovery. Demand for lower-grade fines remains strong as steel mills, struggling with profitability, are opting for more affordable options. Similar waves of bearishness were felt in Chinese port stock markets, with the focal point being margins.
  
  
• Baltic index for Supramax vessels falls w-o-w: According to the Baltic Index report, the BSI index for Supramax vessels fell by 46 points w-o-w to 1,260 points on 9 September as compared to 1,306 points on 2 September.
  
  

Route-wise freight market updates:

• India-China: Freight rates from the Indian Ocean to China have been recorded at $12.2/t, down by $0.6/t w-o-w. According to shipowners, a lack of fresh inquiries and limited cargo availability in the market have driven down freight rates on this route.
  
  
• Australia-China: Freight rates for Capesize vessels carrying iron ore from Western Australia to China were assessed at $11.72/t on Wednesday, reflecting a w-o-w increase of $0.43/t. According to sources, Australian miner Rio Tinto is actively seeking tonnages for shipments from Hay Point Port to Qingdao Port, contributing to the rise in freight rates.
  
  
• Brazil-China: Freight rates for Capesize vessels carrying iron ore from Brazil to China dropped this week. Rates for shipments from Tubarao Port to Qingdao Port were assessed at $27.21/t on 11 September, down by $0.69/t w-o-w. According to sources, a Capesize vessel was booked from Tubarao Port to China at a freight rate of $27.43/t for early October shipment dates.
  
  
• South Africa-China: Capesize freights from Saldanha Bay Port to Qingdao Port decreased by $0.75/t to $20.7/t w-o-w. Absence of fresh inquiries for the route came to the fore.