Spot rates for capesize bulkers took a nice leap over the last week, thanks to healthy iron ore trade flows driven by robust demand for steel.

The capesize 5TC, a weighted average of spot rates on five key routes, jumped to $28,520 per day on Friday, up 19.3% from the end of the previous week, according to the Baltic Exchange.

"Brokers said the transatlantic market shows signs of life and looks set to climb towards $30,000 per day, and front-haul Brazil-China is likely to move accordingly," Clarksons Platou Securities said in its daily note on the dry bulk market.

"The spot index is likely to continue upwards, but without a contango on the paper we will be led by physical fixtures."

Capesize freight forward agreement rates on Friday improved to $28,214 per day for April, $31,500 per day for May and $29,193 per day for June, the Baltic Exchange showed.

The World Steel Association has revised its forecast for global steel demand growth to 5.8% from the previous forecast of 4.1%.

"Robust recovery in countries other than China is forecast to rebound from a 10% contraction last year," Clarksons said. "China’s demand continues to be strong."

The benchmark China-Brazil round-trip voyage rate improved 16.5% over the past week to reach $26,364 per day on Friday.

Bright Navigation has chartered the 176,900-dwt Andros Glory (built 2006) for up to a year to Pacbulk at $23,350 per day, starting on Sunday.

"Rate levels are now closing in on the highs from last year, albeit the build-up in values this time around [appears] not to be taking off like a spaceship but rather taking considered pauses for evaluation," the Baltic Exchange wrote on Friday in its weekly look back on capesize bulkers.

"The flow of fixtures appears strong and supported for the time being as we head into Singapore Maritime Week, where the vessel class will surely be at the centre of many discussions."