SINGAPORE: Iron ore futures were little changed on Wednesday, as a rebound in freight costs and expectations of short-term supply disruptions countered weak underlying demand.
The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose to its highest in more than a week on Wednesday as capesize rates jumped.
The main Baltic index, which tracks rates for capesize, panamax and supramax vessels, rose by 87 points, or 3.36 percent, to 2,680 points, its highest since October 13.
The capesize index gained 271 points, or 7.69 percent, to 3,793 points. Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes including iron ore and coal, increased by USD2,453 to USD30,895.
The panamax index fell 43 points, or 1.91 percent, to 2,204 points. Average daily earnings for panamax vessels, which usually carry 60,000 to 70,000 tons of coal or grain, fell by USD387 to USD19,836 Among smaller vessels, the supramax index rose by 2 points, or 0.11 percent, to 1,870 points.