- BDI recorded at 1,068 points on 23 May 2019, up nine points on-day and remained above 1,000 mark.
- The iron ore Fe 62% benchmark prices remained above $100/mt with Chinese ports inventory drop to almost a two-year low at 131.7m tonnes.
- Capesize market benefits West Coast Australia, with the Capesize 5 time charter average traded at $12,403 .
- Atlantic and Pacific basins relatively healthy and Panamax paper continued its upward climb by $158 on-day and up $258 from Monday’s $10,050.
- Supramax time charter average recorded at $8,768 on Thursday, up $11 on-day, while the Handysize time charter average posted at $5,862, up $36 on-day.
Baltic Dry Index continued to hold above 1,000 point mark with better rates and more tonnage coming from the Atlantic and West Australia market, reports Seatrade Maritime News.
High iron ore prices
BDI recorded on Thursday, 23 May 2019, at 1,068 points, up nine points on-day and remained above 1,000 mark throughout the week.
The high BDI reading on Friday, led to high iron ore prices which achieved the $100 per mt mark maintained above the level since then.
Iron ore prices above $100 per mt
The iron ore Fe 62% benchmark prices had remained above $100/mt due to falling port inventory and increased steel production.
SteelHome consultancy reported , Chinese ports inventory dropped to almost a two-year low at 131.7m tonnes on 20 May 2019. The fall is expected to continue further to around 120m mt in June due to steel mills’ stock replenishment.
Reason behind huge drawdown
Total port inventories were heard to drop by 15 million mt in April whereas additional of 2m mt in May 2019.
Most buyers prefered to buy from port stocks and avoided the more expensive seaborne cargoes. This led to huge drawdown.
Miners’ push for cargoes
Considering the firmer iron ore market,mining majors pumped out more cargo shipments to capitalize high iron ore prices.
Freight rates are relatively cheap to miners which prompted them to grab vessels that support the Capesize market.
Benefit to West Coast Australia
The Capesize market continued to benefit from busy market out of West Coast Australia.
The higher bunker prices also supported higher physical Capesize rates, despite easing of the bunker prices seemed later in the week.
Rates were then seemed in the C5 at 6.90 level done on the miners’ terms, which bodes well for ship-owners in the near term.
These optimisms then translated to a firmer Capesize paper market, with the Capesize 5 time charter average traded at $12,403 on Thursday, up $102 on-day and up $454 from Monday’s rate of $11,949.
Panamax benefits from healthy basins
With the Atlantic and Pacific basins relatively healthy, the Panamax paper continued its upward climbs with prompts collecting some sharp gains later in the week.
The overall tone was as Panamax time charter average posted $10,308 on Thursday, up $158 on-day and up $258 from Monday’s $10,050.
Market positivity had filtered down to the smaller vessels with the Supramax time charter average recorded at $8,768 on Thursday, up $11 on-day, while the Handysize time charter average posted at $5,862, up $36 on-day.
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Source: Seatrade
