Average spot rates for capesize bulkers booked a full week of consecutive gains and saw big climbs again on Friday, following stronger reported fixtures in the Atlantic and Pacific.
The basket assessment for average capesize rates has risen by 25% since Monday.
Baltic Exchange panellists on Friday added a further $1,280 per day to the assessment, which is weighted across five key benchmark routes.
This put the estimate at $19,210 per day, its highest level since mid-October.
Cargo volumes have been steady and available tonnage has run down, but what has ignited sentiment have been reported fixtures by major mining companies at higher rates in the Atlantic and Pacific.
Shortly after the physical index was published on Friday, the futures market responded with a big push for November and December capesize contracts.
Trading volumes for December paper came particularly thick and fast during Friday’s morning session.
Bids reached $23,500 per day by 1.30 pm in London, nearly $1,000 more than the close on Thursday night.
Bids for November were at $20,650 per day at the same time, up by just over $1,000 from Thursday’s print.
Other contracts saw smaller gains in bidding.
Fixtures
Reports of a string of fixtures by major charterers have breathed fresh life into the Atlantic market, following a small but steady trickle of capesize fixtures for Brazil loadings in preceding weeks.
On Thursday, four capesizes were reported fixed by Brazilian miner Vale for iron ore runs to China, all fixed at $21 per tonne on Wednesday for loading dates in the last week of November.
CSN Mining, Brazil’s second-largest iron ore exporter after Vale, was also said to have fixed a newcastlemax for a China voyage at $21.95 per tonne, loading from 2 December.
In the Pacific, Rio Tinto booked two capesizes on Thursday for iron ore voyages in late November from Western Australia to China at $9.30 per tonne and $9.40 per tonne respectively.
Koch Shipping agreed to pay $9.40 per tonne on Thursday for a capesize loading of Australian iron ore in the final week of November, bound for China.
