Iron ore Capesize freight rates continued to edge down this week, with expectations that rates could see further contraction in the next week, market sources said Thursday.
The West Australia to Qingdao iron ore Capesize market was active early in the day, as both miners and owners were seen fixing vessels before the long Easter weekend.
FMG was heard fixing a vessel at about $7.30/wmt for May 3-5, while BHP Billiton fixed two vessels for early May at $7.25/wmt.
Platts assessed the iron ore Capesize freight market from West Australia to Qingdao at $7.25/wmt, falling 15 cents from Wednesday, and 65 cents from last week's 7.90/wmt close.
Market players were seen fixing wherever they can, sources said Thursday, as both owners and charterers started to wrap up for the long weekend.
"Most people are today [Thursday] accepting that it's going to be quiet," one broker said.
Also assessed was the Tubarao to Qingdao route at $18.25/wmt, flat from Wednesday and down 50 cents from $18.75/wmt at the end of last week.
Vale was rumored to have fixed two vessels overnight at $18.50/wmt for May 10 onwards, but this could not be confirmed.
Rates on the iron ore Capesize market on the Saldanha Bay to Qingdao route continued to come under pressure Thursday, with early vessels still seen offered at low rates.
Anglo American was still in the market Thursday for May 6 dates, aiming for the mid-$13/wmt. The miner Wednesday fixed a cargo on the Iron Miner vessel, which is understood to be a spot parcel at Cape Town, for a May 1-5 laycan.
Indications gathered in the market ranged from $13.50/wmt to $15/wmt. Platts assessed the Saldanha Bay to Qingdao market at $14.25/wmt, falling 25 cents from the previous day and 75 cents from last week's close.
Market participants were not optimistic for a rebound in freight rates in the next two weeks, believing that most would wait until after the May day holiday to fix.
"It's going to be quite disruptive [with Friday's holiday] and the May day holidays," the broker said. "I can't see the market rebounding over the next two weeks."
