Spot rates for capesize bulkers have slid into correction over the past few days, after weeks of streaking upward fuelled by low vessel supply and tight demand exacerbated by port congestion.
The capesize 5TC, a spot-rate average weighted across five key routes, fell to $74,540 per day on Wednesday, according to Baltic Exchange data — an 11.1% slump since Friday.
The index was down $4,995 per day since Tuesday.
"Capesize rates have seen some pressure in the last few days," Clarksons Platou Securities said.
KLine has fixed Sinotrans' 180,400-dwt Great Song (built 2011) to carry iron ore at $36.90 per tonne from Saldanha Bay to Qingdao. Loading is scheduled from 1 November to 10 November.
The freight rate for this C17 route fell $1.16 per tonne to $35.45 per tonne on Wednesday.
China's plans to curb steel output and the debt crisis facing Chinese property developer Evergrande have been cited as possible headwinds to the capesize market.
China ordered steel mills in 28 cities around Beijing to cut production by 30% during the first quarter of 2022, Reuters reported.
The paper market has taken a similar plummet with forward-freight agreement (FFA) rates falling for the ensuing months and quarters significantly on Wednesday.
The FFA rate for October dropped 7.8% to $70,464 per day, while that for November tumbled 13.7% to $51,625 per day.
The rate for this year's fourth quarter cascaded 11.1% to $54,725 per day.
"Our FFA desk noted that offers for capes in the North Atlantic were well below the index yesterday, mainly because they competed with panamaxes," Clarksons said.
"Panamax and supramax rates have not seen the same downward movements and actually improved over the past few days."
The panamax 5TC has risen 3.8% since Friday to $35,624 per day on Wednesday, Baltic Exchange data showed.
The supramax 10TC meanwhile gained 2.5% to $389,526 per day.
