Dry bulk iron ore freights from India drop w-o-w on limited cargo availability

• China's spot iron ore prices rise by $4/t w-o-w
  
  
• Baltic Capesize index rises to offset bunker prices
  
  

Dry bulk iron ore freight rates for key routes showed mixed trends this week. Notably, freight from Indian Ocean to China dropped w-o-w amid sluggish activity and limited cargo availability in the Indian Ocean, which weakened demand for vessels. According to BigMint's assessment, Asia-Pacific Supramax dry bulk freights (50,000-55,000 t) for iron ore shipments from the east coast of India to China decreased $2.10/tonne (t) w-o-w to $8.6/t on 15 January.

However, Capesize freight rates improved as shipowners strategically increased offer levels to mitigate the impact of rising bunker prices and protect profitability amidst higher fuel costs. Furthermore, tight vessel availability coupled with a robust cargo pipeline in key regions has exerted upward pressure on rates, supporting the market's recovery.

Factors influencing freights

• Baltic indices show mixed trend w-o-w: The Baltic Dry Index (BDI) was recorded at 1,048 points on 13 January, down by 24 points w-o-w. However, the Baltic Capesize Index stood at 1,448 points, increasing by 73 points w-o-w. Meanwhile, the Baltic Supramax Index declined by 65 points w-o-w to 819 points, reflecting weak demand.
  
  
• China's iron ore spot prices rise by $4/t w-o-w: China's spot prices of iron ore fines (Fe62%) were assessed at $100.7/t CFR on 14 January, up by $4/t w-o-w supported by improved steel mill margins due to lower coking coal and coke costs. Strong demand for medium- and low-grade sintering fines continues, aided by mild winter weather sustaining construction activity in northern China. With most mills completing January restocking, a potential demand increase is expected in February after the holidays.
  
  

Route specifications

• India-China: Freights from the Indian Ocean to China were recorded at $8.6/t, having fallen by $2.10/t w-o-w. According to sources, two Supra vessel of iron ore were booked by an Odisha-based miner from Paradip to Qingdao Port at $8.1-8.2/t for the shipment period of 17 Jan-10 Feb'25. However, some fixtures are yet to be concluded.
  
  
• Australia-China: Freights for Capesize vessels carrying iron ore from western Australia to China were assessed at $6.54/t on 15 January, down by $0.06/t w-o-w. According to sources, Rio Tinto booked two Capesize vessels from a western Australian port to Qingdao Port at around $6.45-6.60/t. The shipment is scheduled for 28 January-1 February.
  
  

• Brazil-China: Freights for Capesize vessels from Brazil to China inched up this week. Rates from Tubarao to Qingdao Port were assessed at $18.2/t on 15 January, increasing by $1/t w-o-w. As per sources, two Capesize vessels were booked from a Tubarao port to Qingdao Port at around $17.75-18.50/t. The shipment is scheduled for 5-11 February.
  
  
• South Africa-China: Capesize freights from Saldanha Bay Port to Qingdao Port increased by $0.5/t w-o-w to $12.7/t. However, no fresh fixtures have been concluded in this route.