The average spot rate for capesize bulkers improved later in the week as China picked up imports of Australian iron ore.
The Baltic Exchange’s capesize 5TC set of spot-rate averages across five key routes fell 11.2% from the end of last week to Wednesday to about $13,600 per day before rebounding 19.4% to reach nearly $16,300 per day on Friday.
That led to a 6% rise for the week.
“As the week comes to an end, most of the activity today has been in the Pacific, mainly from West Australia to China with iron ore, several vessels have been fixed, all at firmer levels,” Baltic exchange analysts wrote on Friday in their weekly dry bulk market wrap-up.
“Overall, it has been a positive end to the week.”
It was evident that China’s interest in Australian iron ore lifted the capesize market later in the week because the average rates for capesize voyages from Australia to China took that very trajectory.
The average freight rate for the C5 route from Western Australia to China slipped 5.8% from 14 April to Wednesday to $7.705 per tonne before recovering to 13.8% to $8.675 per tonne on Friday. The route rate saw a 6% improvement over the past seven days from $8.18 per tonne on 14 April.
The average spot rate for the C10 round-trip voyage between the two regions declined 19.3% from 14 April to Wednesday to just under $10,700 per day before rising 39% to $14,818 per day on Friday.
That marked 12.1% over the week.
Rio Tinto hired an unnamed capesize on Friday to carry 170,000 tonnes of iron ore from Dampier, Australia, to Qingdao, China, at $8.65 per tonne after loading the ship from 7 to 9 May.
The Australian mining giant paid only $8.20 per tonne seven days earlier to carry the same amount of the commodity on the same route after loading the ship from 29 April to 1 May.
Average spot rates for the smaller bulkers also improved later in the week, although they were not nearly as volatile as capesize rates.
The panamax 5TC slipped 3.4% from 14 April to Wednesday to $14,800 per day before gaining 2.9% to land at $15,200 per day on Friday, which resulted in a small decline for the week.
The supramax 10TC improved 9.5% over the past week to $13,211 per day on Friday.
