Iron ore freight rates on global routes increases this week. The hike in bunker prices and lower demand in the Indian ocean amid monsoon season have slowed down inquiries. Meanwhile, Australian miners are highly active and floated inquiries for end August shipment, which is still under negotiation.
Asia-Pacific Supramax dry bulk (50,000-55,000 t) freight rates for an iron ore vessel from the east coast of India to China remained stable w-o-w to $13/tonnes (t) on 14 August.
However, on August 14, spot prices of iron ore fines (Fe 62%) in China were assessed at $98/t CFR China, marking a decrease of $4/t week-on-week. Prices continued to be under pressure due to weak market fundamentals, limited buying activity, and production cuts. Mills prioritized lower-grade fines, which bolstered demand and led to a gradual narrowing of the medium-low grade spread.
Routes specifications:
- India-China: Freight rates from the Indian Ocean to China have recorded at $13/t, stable w-o-w. Notably, absence of inquiries have been witnessed this week amid lower demand due to ongoing monsoon season.
- Australia-China: Freight rates for Capesize vessels carrying iron ore from Western Australia to China were assessed at $10.21/t on 14 August, an increase of $0.51/t w-o-w. Australian major miners are actively seeking cargoes for end-August shipments. Meanwhile, the inquiries are still under negotiation.
- Brazil-China: Freight rates for Capesize vessels carrying iron ore from Brazil to China head north this week. Rates for a shipment from Tubarao to Qingdao were assessed at $25.08/t on 14 August, inched up by $1.08/t w-o-w. Limited fixtures was recorded as shipowners are quoting higher offers for September delivery, bid-offer disparity have hiked the freight for the route, Bigmint noted.
- South Africa-China: Capesize freights from Saldanha Bay to Qingdao hiked by $0.86/t w-o-w to $18.46/t.
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