Trade Resources Economy Rates and Sentiment on The Iron Ore Freight Market Got a Boost

Rates and Sentiment on The Iron Ore Freight Market Got a Boost

Rates and sentiment on the iron ore freight market got a boost Friday after Bocimar International NV was heard taking at least six ships in the Atlantic over the May Day holiday in Asia, putting an end to the downward spiral in Capesize rates seen over the past week.

Bocimar, the drybulk shipping arm of Antwerp-based Compagnie Belge Maritime, or CMB, was heard on Thursday taking in at least six ships on spec with fronthaul options, pushing trans-Atlantic rates up from $6,000/day to $11,000/day, market sources said.

"Fronthaul is now bouncing in solidarity," a Singapore-based charterer said. "Next done will likely be around $20[/wmt] for end-May, and low-twenties for June."

Cargill was heard to have fixed at about $19.75/wmt Thursday for a cargo shipped from Tubarao to Qingdao with a May 20-29 laycan.

Platts assessed the Tubarao to Qingdao iron ore Capesize market at $19.75/wmt, rising $1.35 from Wednesday, and up 75 cents from last Friday's close.

Higher rates were also seen from West Australia to Qingdao, despite a quiet trading day with China, Korea and Japan closed for holiday.

BHP Billiton was in the market Friday fixing three vessels, two at about $7.70/wmt levels for prompter May 8-10 arrival, and a third reportedly at $7.80/wmt, but it was unclear when the vessel would be arriving.

The route from Port Hedland to Qingdao gained 80 cents Friday to be assessed at $7.80/wmt, which was also up 25 cents from last week's close.

"Market seems to be improving a little," a broker said. "Bocimar taking those ships in the Atlantic seems to have improved the mood."

Also assessed was the iron ore Capesize freight market from Saldanha Bay to Qingdao, at $14.25/wmt, gaining 65 cents from Wednesday.

The rate is unchanged from last Friday's close.

Market participants were mostly optimistic that the upturn in rates seen Friday might continue into next week.

"It's anyone's call but we would think so," a charterer-operator said about better sentiment next week. "We have come off big time, so there might be a bit of a correction now."

He however cautioned that market fundamentals still haven't changed, and the market is still seeing more tonnage and not enough cargo to support it.

"It depends, if all three miners and Vale are active [next week], we can see things pick up a little bit, but it's hard to tell."

Source: http://news.chemnet.com/Chemical-News/detail-2303865.html
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Iron Ore Freight Rallies After Bocimar Takes Ships
Topics: Chemicals