Capesize freight rates dropped lower Dec. 27 while activity remained thin on the day.
“The Pacific never rallied when rates in the Atlantic soared,” a shipowner source said. “Now the squeeze in the Atlantic is over and rates are coming down again,” the source added.
On the day, Western Australian miners Rio Tinto, BHP and FMG were in the market seeking ships to move iron ore from Western Australia to China.
“There is a bit of life in the Pacific with all miners in,” a shipbroker source said.
A second shipowner source added that a few more operator inquiries too were heard on the day while suggesting that supply and demand looked rather balanced on the day.
“Information though is really patchy with many [market participants] on leave,” the second shipowner source said. FMG was heard to have fixed a Capesize vessel from Port Hedland in Western Australia to Qingdao in China for Jan. 10-12 laycan at $8.30/wmt. Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Port Hedland to Qingdao at $8.30/wmt Dec. 27, down 20 cents/wmt from Dec. 23.
Cargill was heard to have fixed a 150,000 mt (plus/minus 10%) coal cargo from Gladstone on east coast Australia to Dhamra on east coast India for Jan. 10-16 laycan around $10/mt.
Out of the north Atlantic, market sources noted that vessels were fixed for trips towards the Far East around $39,000/day.
“Overall north Atlantic remains tight on the tonnage front. But, there is not a lot going on,” the second shipowner source said.
From Brazil, Vale was heard to have fixed a Capesize vessel from Tubarao to Qingdao for Jan. 15-18 laycan at low-mid-$19s/mt, late on Dec. 23.
Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/ minus 10%) of iron ore from Tubarao in Brazil to Qingdao at $19.15/wmt Dec. 27, down $2.85/wmt from Dec. 23.
Out of South Africa, Ore and Metal was heard to have fixed a 160,000 mt (plus/minus 10%) iron ore cargo from Saldanha Bay to Dangjin in South Korea for Jan. 19-24 laycan at $13.85/wmt. Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/ minus 10%) of iron ore from Saldanha Bay to Qingdao at $14.10/wmt Dec. 27, down $1.15/wmt from Dec. 23. Platts is part of S&P Global Commodity Insights.
Disclaimer: this article is from the SBB STEEL MARKET DAILY, the copyright belongs to the original author, and only represents the original author's viewpoint.
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