Driven by strong demand from major iron ore miners, the average spot rate for capesize bulk carriers soared on Friday, up as much as 12.7 per cent, with one-day rates approaching US$22,200 per day.
Since last Monday, capesize bulk carrier rates have finally rebounded strongly after falling to their lowest point since early February, rising to 28.5 per cent.
The main driver behind this rally was strong demand from Australia's mining giants. In particular, Rio Tinto and Fortescue Metals Group have each successfully chartered capesize bulk carriers used to transport iron ore from Western Australia to China at $10.60 per tonne.
The price was not only higher than the $10.30 to $10.40 per tonne range traded the day before, but also significantly higher than the $9.60 per tonne traded at the market trough on Monday.
Analysts at the Baltic Exchange noted in their daily report that "trading activity in both the Atlantic and Pacific regions increased significantly, reflecting the buoyant state of the market." And added: "All three major miners are active in the market."
The futures market, however, showed a mixed picture, with the June capesize contract up $357 to just above $30,200/day, while the July contract was down $221 to a price of around $28,700/day.
Shipowner 2020 Bulkers, however, is seeing more upward momentum. The Oslo, Norway-listed company says: "We are observing that many vessels are languishing in the market, waiting for a better time to strike. This market dynamic sounds quite promising."
https://www.cnss.com.cn/html/hygc/20240506/353087.html
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