Capesize freight rates continued to trend lower on Aug. 11, as an oversupply of tonnage gave way to sharper bids and owners resistance fizzled out despite firmer bunker prices.
“There was quite a decent clear out of vessels in the Pacific with the volume of fixtures this week, but the efficiency at discharge ports had been good [since weather concerns had
eased],” said a shipbroker source. A second shipbroker source felt that the presence of end-
August loading cargoes in the Pacific would have given support to freight rates but the last done fixtures suggested otherwise.
On the day, Rio Tinto was heard to have fixed a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Port Dampier in Western Australia to Qingdao in China at $7.70/wmt
for Aug. 27-29 laycan. BHP was also heard to have fixed at least two Capesize ships to move 160,000 mt (plus/minus 10%) of iron ore each from Port Hedland in Western Australia to Qingdao in China at $7.85/wmt to $7.80/wmt for Aug. 27-29 laycan. 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 $7.75/wmt Aug. 11, down 25 cents/wmt from Aug. 10.
Market participants said that activity out of the Atlantic basin was muted and discussions were generally thin on the day.
“It’s been a rather slow market out of the Atlantic basin, and there weren’t many discussions,” said a ship operator source.
A shipbroker source added that the fundamentals are still challenging considering the long inbound ballaster list especially for loading dates in the early part of September, despite there
being uncovered cargoes out of Brazil and West Africa. “A very dull market in general, and I feel that it may soften further as indicative freight rates suggest that there is downward pressure closer to the bid levels,” echoed a second ship operator source.
On the day, Vale was heard to be seeking a Capesize ship to move 170,000 mt (plus/minus 10%) of iron ore from Tubarao in Brazil to Qingdao for early-September laycan. Indicative spreads were heard to be around the low-$20s/wmt on the bids versus mid- to high-$20s/wmt on the offers.
Late Aug. 10 out of Brazil, CSN was heard to have fixed a Capesize ship to move 180,000 mt (plus/minus 10%) of iron ore from Itaguai in Brazil to Qingdao at around the low to mid-$20s/
wmt level for Sept. 3-5 laycan. 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 $20.20/wmt Aug. 11, down 10 cents/wmt from Aug. 10. No fresh activity was heard out of South Africa on the day.
Platts assessed the freight rate for a Capesize ship to move 170,000 mt (plus/ minus 10%) of iron ore from Saldanha Bay in South Africa to Qingdao at $15/wmt Aug. 11, unchanged from Aug. 10. 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.
|
