India: Dry bulk iron ore freight rates decline w-o-w amid lack of fixtures

• Sharp drop in Baltic index weighs on freight rates
  
  
• Absence of fixture in South Africa-China route
  
  

Dry bulk iron ore freights continued to fall this week amid reduced activity in the Pacific basin, compounded by a seasonal slowdown in demand as colder weather hampers construction and steel-related activities in China. Additionally, limited availability of iron ore cargoes and declining bunker fuel prices pressured freight rates. These factors collectively reduced demand for ship movements, weakening the count of inquiries and driving rates lower.

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 dropped $0.1/tonne (t) w-o-w to $11.2/t on 11 December.

Factors influencing freight rates

• Baltic index declines w-o-w: The Baltic Dry Index (BDI) was recorded at 1,167 on 9 December, down 187 points w-o-w. Additionally, the Baltic Capesize Index stood at 1,535 points, falling by 598 points w-o-w. Meanwhile, the Baltic Supramax Index declined by 6 points w-o-w to 974.
  
  
• China's iron ore spot prices remain largely stable w-o-w: China's spot prices of iron ore fines (Fe62%) were assessed at $105.80/t CFR on 10 December, largely stable w-o-w amid robust trading activity and cooling off of sentiments post-Politburo meeting. As per reports, traders are likely to avoid risks with recent dollar market cargoes, as their loading and shipping times coincide with the Lunar New Year unless the offer is highly attractive. Mills preferred the port stock market due to easier liquidity, particularly at eastern ports.
  
  

Route specifications

• India-China: Freights from the Indian Ocean to China were recorded at $11.2/t, having fallen by $0.1/t w-o-w. According to Sources, a Supra vessel of iron ore got booked from port Paradip to Qingdao port at freight $11.15/t for this week shipment.
  
  
• Australia-China: Freights for Capesize vessels carrying iron ore from western Australia to China were assessed at $7.5/t on 11 December, down by $1.5/t w-o-w. According to sources, major Australian miner Rio Tinto booked one Capesize vessels from a western Australian port to Qingdao Port at around $7.30/t. The shipment is scheduled for 26-28 December.
  
  

• Brazil-China: Freights for Capesize vessels from Brazil to China declined this week. Rates from Tubarao to Qingdao Port were assessed at $17.5/t on 11 December, decreasing by $4/t w-o-w. BigMint observed that freight rate declined due to subdued trading activity and an ample supply of vessels.
  
  
• South Africa-China: Capesize freights from Saldanha Bay Port to Qingdao Port dropped by $3.2/t w-o-w to $13.3/t. The absence of fresh fixtures and muted demand for shipments contributed to the drop in freight rates.