Chinese iron fixtures hit 3-month high
CAPESIZE rates are rebounding, with Chinese iron ore fixtures surging to a three-month high, US drybulk consultancy Commodore Research said.

Last week, 21 vessels were chartered to haul iron ore to China, six more than the previous week and eight more than the trailing four-week average. That was the biggest number of Chinese iron ore fixtures since the week ending 30 March, when 29 vessels were hired to ship iron ore to China.

Capesize rates have hit $8 per tonne for the West Australia/China route, as vessel supply tightens and China resumes iron ore imports in earnest due to falling international prices. Daily Capesize rates averaged $7,904 last week, almost double the $3,916/day the previous week.

Commodore said 15 Australian iron ore fixtures came to the market last week, seven more than the previous week and up from the trailing four-week average. All of the fixtures were made to ship iron ore to buyers in China.

It is uncertain how long the recovery will last, as Chinese iron ore stockpiles remain high and steel prices have been falling due to weak demand.

About 97.8 M tonnes of iron ore is stockpiled at Chinese ports, 1M tonnes more than a week ago. Commodore predicted that Chinese iron ore port stockpiles would fluctuate from 95M tonnes to 101.5M tonnes.

Chinese steel prices have been coming under increased pressure this week. The average price of 3mm hot rolled coil in China is now 4,170 yuan/tonne ($654), 70 yuan less than at the end of last week. Chinese steel prices have fallen more during the last three days than during any time since late October 2011.