Capesize iron ore freight rates on established Pacific routes from Brazil, Western Australia and South Africa trended up Wednesday as more fixtures were concluded in the market.

 

Some market participants however expected the physical market to be impacted by the downtrend in the paper market seen through Wednesday.

 

Platts assessed the Capesize iron ore freight rate from Brazil to China's Qingdao port at $22.50/wmt, up $1.70/wmt from Tuesday.

 

Two Capesize vessels were reported fixed Tuesday at $22.25/wmt on the Tubarao-Qingdao route for 1-10 December laycan, and one of these was re-let in the high-$22s/wmt, market sources said. Another fixture was reported at $22.50/wmt, also on the Tubarao-Qingdao route, for early-December laycan, sources said. The Western Australia to Qingdao route also saw an uptick in fixture activity and freight rates.

 

Platts assessed the Capesize iron ore freight rate from Western Australia to Qingdao at $8.95/wmt, up 55 cents from Tuesday.

 

Louis Dreyfus Commodities fixed a Capesize vessel Tuesday at $8.95/wmt on the Port Hedland-Qingdao route for 24-30 November laycan.

 

At least three Capesize vessels were reported fixed Wednesday at $8.95/wmt on the West Australia-Qingdao route for late-November laycan, sources said.

 

Platts assessed the Capesize iron ore freight rate from South Africa's Saldanha Bay to Qingdao at $16.30/wmt, up $1.20/wmt from Tuesday.

 

On this route, a Singapore-based charterer said he would be willing to charter a vessel at about $16/wmt against an owner's rate in the high-$16s/wmt.

 

Several vessels were seen ballasting in the market and so the charterer said he was in no hurry to secure fixtures.