Mon Oct 22, 2012
Oct 22 (Reuters) - The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry commodities, rose on Monday, as demand for iron ore kept capesize rates high.
The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, rose 2.67 percent to 1,037 points.
The Baltic's capesize index rose 5.19 percent to 2,332 points.
Average daily earnings for capesizes, which usually transport 150,000-tonne cargoes such as iron ore and coal, were up $1,219 at $15,599, levels not seen since January 2012.
Pacific round voyage rates were the main strength for capesize rates on Friday due to higher Australia-China runs, RS Platou Markets said in a note.
Spot iron ore prices were steady on Monday but were likely to rise later in the week as firmer steel prices in top consumer China encourage mills to produce more of the building material.
Seasonal demand during the month when some construction activity takes place has buoyed Chinese steel prices, although gains have been limited with overall end-user demand still largely tepid.
Iron ore shipments account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.
The panamax index fell 2.05 percent, with average daily earnings down $150 at $6,870.
Panamaxes typically transport 60,000-70,000-tonne cargoes of coal or grain.
The Panamax market has been under pressure as a consequence of weak coal volumes, Arctic Securities said in its note.
Average daily earnings for handysize ships were down $10 at $6,545, while those of supramax ships were down $114 at $7,538.
(Reporting by NR Sethuraman in Bangalore; editing by James Jukwey)
Oct 22 (Reuters) - The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry commodities, rose on Monday, as demand for iron ore kept capesize rates high.
The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, rose 2.67 percent to 1,037 points.
The Baltic's capesize index rose 5.19 percent to 2,332 points.
Average daily earnings for capesizes, which usually transport 150,000-tonne cargoes such as iron ore and coal, were up $1,219 at $15,599, levels not seen since January 2012.
Pacific round voyage rates were the main strength for capesize rates on Friday due to higher Australia-China runs, RS Platou Markets said in a note.
Spot iron ore prices were steady on Monday but were likely to rise later in the week as firmer steel prices in top consumer China encourage mills to produce more of the building material.
Seasonal demand during the month when some construction activity takes place has buoyed Chinese steel prices, although gains have been limited with overall end-user demand still largely tepid.
Iron ore shipments account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.
The panamax index fell 2.05 percent, with average daily earnings down $150 at $6,870.
Panamaxes typically transport 60,000-70,000-tonne cargoes of coal or grain.
The Panamax market has been under pressure as a consequence of weak coal volumes, Arctic Securities said in its note.
Average daily earnings for handysize ships were down $10 at $6,545, while those of supramax ships were down $114 at $7,538.
(Reporting by NR Sethuraman in Bangalore; editing by James Jukwey)
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