Dry bulk iron ore freights from India remain firm w-o-w on improved trade activities

• Restocking ahead of Chinese holidays boosts market
  
  
• Baltic index registers w-o-w downtrend
  
  

Dry bulk iron ore freight rates from the Indian Ocean to China remained unchanged this week. The market remains under pressure, with high vessel availability outweighing limited demand, further exacerbated by a seasonal dip in activity and falling bunker prices. However, some fresh cargoes were reported on this route which have prevented further drop in freights.

The slight improvement in Capesize freight rates was driven by fresh iron ore demand, though many were forward laycans starting mid-February. This future demand boosted market sentiment despite low activity overall.

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 remained stable w-o-w at $8.6/t on 22 January.

Factors influencing freights

• Baltic indices fall w-o-w: The Baltic Dry Index (BDI) was recorded at 987 points on 20 January, down by 61 points w-o-w. Meanwhile, the Baltic Capesize Index stood at 1,393 points, decreasing by 55 points w-o-w. Additionally, the Baltic Supramax Index declined by 72 points w-o-w to 747 points, reflecting weak demand.
  
  
• China's iron ore spot prices increase w-o-w: China's spot prices of iron ore fines (Fe62%) were assessed at $104.9/t CFR on 21 January, up by $4/t w-o-w amid improved driven by the latest macroeconomic news. The uptick was attributed to improved market sentiment driven by recent macroeconomic developments. Notably, the announcement that the US would delay imposing additional tariffs on Chinese imports bolstered confidence. Additionally, a stronger Chinese Yuan against the US Dollar further supported the positive outlook.
  
  

Route specifications

• India-China: Freights from the Indian Ocean to China were recorded at $8.6/t, firm w-o-w. According to sources, one Supra vessel of iron ore was booked from East coast India to Qingdao Port at $9.5/t for the shipment period of 10-17 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 $6.20/t on 22 January, fell by $0.34/t w-o-w. According to sources, Rio Tinto booked two Capesize vessels from a western Australian port to Qingdao Port at around $6.25-6.30/t. The shipment is scheduled for 6-9 February.
  
  

• Brazil-China: Freights for Capesize vessels from Brazil to China fell this week. Rates from Tubarao to Qingdao Port were assessed at $17.6/t on 22 January, decreasing by $0.6/t w-o-w. As per sources, freight rates on the Brazil-China route have dropped because there are too many ships available for mid-February, while demand remains low, and market sentiment is weak.
  
  
• South Africa-China: Capesize freights from Saldanha Bay Port to Qingdao Port remained largely stable w-o-w to $12.7/t. However, no fresh fixtures have been concluded in this route.