Dry bulk iron ore freights remain largely stable w-o-w

• Baltic index falls to 9-month low levels
  
  
• Lack of inquiries keep freight rates under pressure
  
  

Dry bulk iron ore freights remained largely stable this week. Limited cargoes were seen at the portside due to sluggish demand. However, a few fixtures from Indian ocean have maintained freights at a similar level. Also, major Australian miners were seen fixing Capesize vessels for mid-November 2024 shipment at same levels. Notably, Chinese buyers are opting to wait and watch due to uncertainty in market sentiment.

A shipowner stated, "Sentiment is not so great as Chinese demand is not so firm. However, a lot of things may change post US election result."

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 largely stable w-o-w to $12.25/t on 6 November.

Factors influencing freights

• Baltic index drops to 9-month low: The Baltic Dry Index (BDI) was recorded at 1,378 points on 4 November, its lowest level since 5 February's 1,407 points. Notably, the Baltic Capesize Index stood at 1,848 points against 2,030 points on 5 February. Additionally, the Baltic Supramax Index declined to 1,163 points on 4 November against 1,189 points on 26 February.
  
  
• China's iron ore spot prices hike w-o-w: China's spot prices of iron ore fines (Fe 62%) were assessed at $106/t CFR on 6 November, up by $3/t w-o-w amid optimistic market sentiment driven by expectations of potential macroeconomic stimulus announcements from the ongoing Chinese National People's Congress meeting. Anticipated policy support may reflect positive outlook on economic measures in the coming weeks.
  
  

Route specifications:

• India-China: Freights from the Indian Ocean to China were recorded at $12.25/t, a drop of $0.05/t w-o-w. According to shipowners, some movements of ships were recorded at portside. A supramax vessels were booked from Paradip port to Qingdao port at freight $11/t for 5-10 November shipment. Also, iron ore containing vessel from Krishnapatnam port to Qingdao were fixed at $13.25/t for 6-9 November laycan, as per sources informed.
  
  
• Australia-China: Freights for Capesize vessels carrying iron ore from Western Australia to China were assessed at $8.6/t on 6 November, stable w-o-w. According to sources, major Australian miners Rio Tinto and BHP were seen booking large vessels from Hedland and Dampier Port to Qingdao Port at around freight $8.7/t. The shipment is scheduled on mid-November dates.
  
  
• Brazil-China: Freights for Capesize vessels carrying iron ore from Brazil to China declined this week. Rates for shipments from Tubarao to Qingdao port were assessed at $20.55/t on 6 November, a decrease of $0.25/t w-o-w. As per sources, the absence of inquiries for the route kept freight under pressure.
  
  
• South Africa-China: Capesize freights from the Saldanha Bay Port to Qingdao Port declined by $0.03/t w-o-w to $16/t. The lack of inquiries for the route weighed on shipping rates, sources informed.