SINGAPORE: Iron ore prices extended their decline to multi-month lows on Friday, weighed down by lacklustre steel consumption and anticipation of rising supply of the key steelmaking ingredient. HThe Baltic Exchange’s dry bulk freight index fell to a more than six-week low on Friday and posted a weekly loss, as a decline in capesize rates continued to weigh on the market.
The main Baltic index, which tracks rates for capesize, panamax and supramax vessels, fell 56 points, or 1.9 percent, to 2,917 points, its lowest level since August 24. The index fell 7.3 percent for the week.
The capesize index fell 172 points, or 3.8percent, to 4,340 points, its lowest level since July 31. The index logged a 13.9percent weekly loss.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes including iron ore and coal, fell USD1,560 to USD35,860.
The panamax index gained 14 points, or 0.6 percent, to reach 2,424 points; it gained 2.2 percent this week. Average daily earnings for panamax vessels, which usually carry 60,000 to 70,000 tons of coal or grain, rose USD125 to USD21,813.
Among smaller vessels, the supramax index increased 6 points, or 0.3 percent, to 1,814 points and marked a weekly gain of 1.4 percent.
Comments