Trade Resources Industry Views Capesize Iron Ore Freight Rates Fell Across Most Routes Thursday

Capesize Iron Ore Freight Rates Fell Across Most Routes Thursday

Capesize iron ore freight rates fell across most routes Thursday, as charterers took advantage of a relatively quiet trading day to press rates down in the Pacific.

Fixture activity in the Pacific slowed Thursday after a flurry of fixtures seen earlier this week. Amongst mining majors, only Rio Tinto was heard in the market Thursday, with BHP Billiton and FMG notably absent.

Rio Tinto was heard aiming at $8.50/wmt for a March 5 arrival vessel.

"They're trying for $8.50/wmt, which means they won't pay much more than that," a Singapore-based charterer-cum-operator said.

He said he thought the market might be moving back down to the $8.50/wmt mark on Thursday from higher levels seen earlier this week "because there's less pressure now on early March dates."

Bids were seen coming off Thursday, as charterers tried to take advantage of a quieter market to push rates down, market sources said, even if owners seemed to be holding onto their offers. Bid and offer levels were heard at $8.40/wmt to $8.70/wmt.

Platts assessed the market at $8.55/wmt, falling 20 cents from the previous day.

"It's quieter today," a Singapore shipowner said, adding that there was no specific reason for the slowdown. "Charterers are trying to subdue [the market], but it's fundamentally tight."

"It should pick up again in a couple of days," the shipowner said.

The Capesize market on the Tubarao to Qingdao route was similarly soft Thursday, with bid and offers heard in a wide $1/wmt spread at $18/wmt and $19/wmt, market sources said. The route was assessed at $18.75/wmt Thursday, falling 10 cents from the previous day.

Vale was rumored fixing at least two vessels overnight from Tubarao to Qingdao for 1/10 March loading at index levels, two sources said Wednesday, without giving details.

Rates on the Saldanha Bay to Qingdao route held steady Thursday despite few fixtures heard in the market. Bids and offers were at $14.50/wmt and $15/wmt, the charterer-cum-operator source said. Platts assessed the market at $14.50/wmt, unchanged from Wednesday.

Oldendorff was heard fixing the Liberia-flagged Edwin bulk vessel on timecharter and was not in the spot market Thursday, a source close to the matter said. The 174,943 dwt Edwin disembarked from Singapore port on February 17, according to Platts shiptracking service Cflow.

Source: http://news.chemnet.com/Chemical-News/detail-2254075.html
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Asia Capesize Dry: Iron Ore Freight Rates Slip on Limited Fixtures
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