Dry bulk iron ore freights surge; India-China route hits 2-month high

• Spot iron ore prices in China plunge w-o-w
• Baltic indices rise w-o-w; BCI up 827 points
  

Dry bulk iron ore freights surged w-o-w, with rates from India to China hitting a two-month high, as per data maintained with BigMint.

Moreover, Capesize freights rose due to strong demand for iron ore shipments, particularly from major miners in the Pacific, which led to higher fixing activity. Continued momentum from the previous week, coupled with limited vessel availability and a widening bid-ask spread in the Atlantic, further supported freight increases.

Factors influencing freights

• Baltic indices rise w-o-w: The Baltic Dry Index (BDI) was recorded at 1,229 points on 3 March, increasing by 248 points w-o-w. Meanwhile, the Baltic Capesize Index (BCI) stood at 1,818 points, rising sharply by 827 points w-o-w. Additionally, the Baltic Supramax Index (BSI) inched up by 9 points w-o-w to 895 points, reflecting positive market sentiment.
• China’s iron ore spot prices plunge $5/t w-o-w: China’s spot prices of iron ore fines (Fe62%) were assessed at $101.95/tonne (t) CFR on 4 March, falling sharply by $5/t w-o-w amid weak demand and easing supply. Stricter environmental controls and low margins dampened buying interest. Market sentiment remained cautious ahead of China’s Two Sessions and the potential impact of US tariffs on Chinese goods this week.

Route-wise updates

• India-China: Freights from the Indian Ocean to China were recorded at $11/t, up by 0.3/t w-o-w. Indications were even heard on the higher side of $11.5/t.
• Australia-China: Freights for Capesize vessels carrying iron ore from Western Australia to China were assessed at $10/t on 3 March, increasing by $3.3/t w-o-w. According to sources, Australian miner Rio Tinto booked two Capesize vessels from Dampier to Qingdao Port at around $10.4-10.6/t. Shipment is scheduled for 19-21 March.

• Brazil-China: Freights for Capesize vessels from Brazil to China inched up this week. Rates from Tubarao to Qingdao Port were assessed at $19.8/t on 3 March, climbing up by $2.45/t w-o-w.
• South Africa-China: Capesize freights from Saldanha Bay Port to Qingdao Port rose to $14.9/t.