Asia Dry Bulk-Capesize rates may slide as fixture activity cools
* Rates from Western Australia to China fall from six-month high
* Capesize fleet to grow 11.6 pct -Bancosta
By Keith Wallis
SINGAPORE, May 19 (Reuters) - Freight rates for large capesize dry cargo ships on key Asian routes could slide next week as charterers rein in their activity following a flurry of fixtures which pushed rates from Western Australia to China to a six-month high this week, ship brokers said on Thursday.
That came as all three Australian iron ore miners - Rio Tinto, BHP Billiton and Fortescue Metals Group - cashed in on higher iron ore prices with a raft of fixtures this week. Iron ore prices have climbed from a low of $37 a tonne in December to around $56 a tonne this week.
"There were two days of optimism where the market was pushing up and everything is looking rosy, then the market comes off and rates fall through the floor," said a Singapore-based capesize broker on Thursday.
"The capesize market is a never-ending roller coaster. Rates are up, then they're down. There's no sustainability," the broker said.
Capesize freight rates for a spot cargo from Western Australia to China climbed to $4.63 a tonne on Tuesday, the highest level since Dec. 1, 2015.
But they dropped again from Wednesday. Continuación...