Capesize iron ore freight rates on established Pacific routes from Brazil, Western Australia and South Africa came under pressure Thursday.
Charterers' rates and some offer prices fell from the previous day, which market participants attributed to volatility in the paper market and to several vessels seen ballasting.
Platts assessed the Capesize iron ore freight rate from Brazil to China's Qingdao port at $21.70/wmt Thursday, 80 cents down from the previous day. Owners' rates were below $22/wmt for December laycan while bids were seen at around $21/wmt, sources said.
"There's not a lot of activity in the market," a Singapore-based charterer said. "The sentiment and impetus are not really there (for market participants to conclude fixtures). Charterers will not pay a premium now to secure fixtures," he added.
The West Australia to Qingdao route was "resilient" Thursday, a Singapore-based charterer said.
Platts assessed the Capesize iron ore freight rate from Port Hedland to Qingdao at $8.90/wmt Thursday, down 5 cents from the previous day. Fixture activity had been on an uptrend earlier this week, but charterers were seen seeking lower rates Thursday, market sources said.
Market sources reported a Capesize fixture concluded late Wednesday for this route at $8.95/wmt for shipment of 170,000 wmt +/-10% of iron ore, loading 18-19 November.
On the Port of Dampier to Qingdao route, a charterer was seen aiming for fixtures below $9/wmt, market sources said Thursday though this could not be confirmed.
Platts also assessed the Capesize iron ore freight rate from South Africa's Saldanha Bay to Qingdao at $15.90/wmt Thursday, down 40 cents from the previous day.
Charterers' rates along this route were expected to be around $15/wmt Thursday, some sources said, compared to fixtures last concluded earlier this week in the low-$16s/wmt for this route.
