The comeback in the Atlantic market for capesize bulkers has kept coming so far this week, powering big gains in spot rate assessments.
Major mining firms and operators have returned to the market, while cargo supply has held firm from the key iron-ore exporting regions of Australia and Brazil, as well as South Africa.
The basket assessment for average capesize rates has risen by 40% over the last week.
Baltic Exchange panellists on Tuesday added a further $1,963 per day to the overall assessment, which is weighted across five key benchmark routes.
This put the estimate at $22,835 per day, its highest level since mid-October.
Panellists responded to firmer fixing activity for iron ore voyages from Brazil to China by adding a huge $1.265 to their assessment of rates for the route.
They estimated the voyage at $24.535 per tonne on Tuesday.
The rival voyage route for Australian iron ore bound for China crept higher by 27 cents on Tuesday and was assessed at $10.275 per tonne, on the back of steadily improving reported fixtures from miners.
Deals reported on Monday showed rates as high as $10.05 per tonne for iron ore voyages to China from Western Australia, loading in the last few days of November.
Rio Tinto, a mainstay of the capesize spot market over the past weeks and months, was joined in the market by Australian miner Fortescue Metals Group. Each booked two vessels on Monday.
Operators Oldendorff Carriers and Solebay Shipping of China rounded out demand for iron ore voyages from Brazil with new deals reported on Monday.
Oldendorff was said to have fixed a Star Bulk’s 180,716-dwt Star Ophelia (built 2010) for a voyage to China from Tubarao at $23.50 per tonne, loading from mid-December.
Solebay reportedly fixed Alpha Bulkers’ 177,830-dwt Skythia (built 2010) for the same voyage plus an option to call in West Africa at $22.50 per tonne during the first half of December.
A new deal came to light that was fixed on Friday.
Mining firm Ore & Metal booked a capesize for iron ore from Saldanha Bay, South Africa in the first half of December for a voyage to Qingdao, China at $17.40 per tonne.
Further gains were seen in the futures market on Tuesday, but it did not quite match the monster push seen on Monday.
Bids for the December capesize contract were at $26,600 per day as of mid-afternoon in London.
The contract settled on Monday at $25,968 per day, having gained $1,736 that day.
