- Robust trade activities boost freight rates
- Regular enquiries heard from major Australian miners
Dry bulk iron ore freight rates surged this week on strong market sentiment in China. Demand from steel mills are improving due to recovery in Chinese steel futures. Chinese steel players are also procuring ore for further restocking of raw material. Increase in fresh enquiries and hike in trading activities have kept freight rates supported. Uptrend in iron ore demand from China have supported portside prices.
Iron ore (Fe 62%) fines spot prices inched up w-o-w by $2/tonnes (t) to $110/t CFR China later yesterday amid improved production margin and expectation of more spot cargo procurement by steel mills in the near term, followed by an uptick in finished steel sales. Anticipation is building up ahead of Chinese quarterly data release and its implication for commodity prices.
Asia-Pacific supramax dry bulk (50,000-55,000 t) freight rates for an iron ore vessels from the east coast of India to China stayed supported this week at $13.5/t on 17 April, as per BigMint assessment.
Route specifications:
- India-China: Freight rates have increased from the Indian Ocean to China, as a few enquiries were recorded fixed, with demand from China recovering due to the rise in steel production. As per sources, a supra vessel for this key route fixed freight at $12.8/t earlier this week. Additionally, JSW Steel has booked two supramax vessels from Dhamra port to China at a rate of $14.75/t.
- Australia-China: Australian iron ore miners BHP, FMG and Rio Tinto have been witnessing regular bookings of capesize vessels. Notably, portside iron ore cargoes are sufficiently available. The fixtures by the miners have been fixed for the period from last week April to first week of May.
- Brazil-China: Rising enquiries from the Pacific region have boosted freight rates w-o-w. Fresh enquiries are booming for the key routes on availability of cargo volumes. Enquiries are being witnessed for mid-May shipment. Notably, it is expected that enquiries will be fixed in the near future.
- South Africa-China: An enquiry has been fixed this week for May shipment. Active trades in this key route have boosted freight rates.
