The futures market for capesize bulkers took a nice leap on Monday, though the physical market is off to a lacklustre start for the week.
The Capesize 5TC set of spot-rate averages across five key routes edged up 0.7% on Monday to $15,192 per day, continuing its proximity to $15,000 per day since Wednesday.
September contracts, however, improved 6.9% on Monday to $16,229 per day, according to the Baltic Exchange, putting the capesize market into contango.
Contracts for the upcoming months and quarters were also in the green.
“The beginning of the week has followed the typical pattern of a slow and sluggish Monday,” Baltic Exchange analysts said on Monday.
“However, despite the initial slowness, the underlying sentiment in the Pacific remains positive.”
Australian iron ore majors Rio Tinto and BHP “have been active today”, they said, fixing capesizes on the C5 iron ore route from Australia to China at freight rates that are about $0.15 per tonne higher than Friday’s freight rates.
BHP fixed an unnamed capesize on Monday to carry 160,000 tonnes of iron ore from Port Hedland, Australia, to Qingdao, China, after loading the ship from 21 to 23 August.
Rio Tinto hired an unnamed capesize on Monday to ship 170,000 tonnes of ore from Dampier, Australia, to Qingdao after loading the vessel from 19 to 21 August. They both paid freight rates of $8.50 per tonne.
On Friday, an unrevealed charterer fixed an unnamed capesize to move 170,000 tonnes of ore from Dampier to Qingdao at $8.35 per tonne after loading the ship from 18 to 20 August.
BHP also hired an unnamed capesize on Friday to move 160,000 tonnes of ore from Port Hedland to Qingdao at $8.20 per tonne after loading the vessel from 20 to 22 August.
And though fixture activity in the Atlantic basin has been “limited so far”, brokers indicate that there are still several cargoes from South Brazil and West Africa to the Far East requiring August loaders, the analysts said.
“Owners who can accommodate this arrival window seem to be showing resistance to the current bids,” they said.
“Overall, it has been a positive start to the week for the sector.”
