Dry bulk iron ore freights rise w-o-w post-Lunar New Year holidays

• Rise in bunker tags supports India-China freights
• Higher exports from India boost tonnage demand

Dry bulk iron ore freights from India to China rose w-o-w, driven by stronger demand for Indian cargoes, limited vessel availability, and improved sentiment in the Pacific region, as Chinese market participants resumed activities following the Lunar New Year holidays.

Increased exports from India boosted demand for shipping capacity, while weather-related disruptions and port congestion tightened vessel supply. Additionally, a firming global dry bulk market and renewed Chinese demand for post-holiday restocking further supported the rate hike.

Factors influencing freights

• Baltic indices exhibit mixed trends w-o-w: The Baltic Dry Index (BDI) was recorded at 815 points on 10 February, increasing by 80 points w-o-w. However, the Baltic Capesize Index (BCI) stood at 840 points, decreasing by 34 points w-o-w. Additionally, the Baltic Supramax Index (BSI) rose by 74 points w-o-w to 677 points, reflecting an improvement in demand.
• China’s iron ore spot prices increase by $3/t w-o-w: China’s spot prices of iron ore fines (Fe62%) were assessed at $106.55/t CFR on 11 February, up by $3/t w-o-w amid growing market optimism ahead of China’s upcoming plenary sessions. Despite weaker market fundamentals, reports suggest that participants expect positive policy signals, which supported price gains for seaborne iron ore cargoes. However, the rise in spot prices dampened buying interest from steel mills, and they await clearer market trends before making further purchases.

Route specifications

• India-China: Freights from the Indian Ocean to China were recorded at $9.6/t, up by 1.6/t w-o-w. The rise in freights from India to China was supported by increased interest from Chinese market participants following their return from the Lunar New Year holidays, along with a recovery in bunker prices.
• Australia-China: Freights for Capesize vessels carrying iron ore from Western Australia to China were assessed at $6.40/t on 12 February, increasing by $0.2/t w-o-w. According to sources, major Australian miner Rio Tinto booked two Capesize vessels from a Western Australia port to Qingdao Port at around $6.30-6.70/t. Shipment is scheduled for 26-28 February.

• Brazil-China: Freights for Capesize vessels from Brazil to China inched up this week. Rates from Tubarao to Qingdao Port were assessed at $17.10/t on 12 February, up by $0.2/t w-o-w. As per sources, limited vessel availability, due to an abundant ballaster supply, and steady demand from charterers contributed to higher freights.
• South Africa-China: Capesize freights from Saldanha Bay Port to Qingdao Port inched down by $0.2/t w-o-w to $12.3/t. No fresh fixtures were recorded on this route.