A close examination of recent spot chartering activity shows that 126 dry bulk vessels were chartered in the spot market last week. This is 25 more than were chartered during the previous week. Last week's vessel chartering activity included the chartering of 52 capesize vessels (13 more than the previous week), 48 panamax vessels (13 more than the previous week), 16 handymax vessels (3 less than the previous week), and 10 handysize vessels (2 more than the previous week). Dry bulk freight rates found great support last week. Capesize rates ended last week averaging $14,391 /day, an increase of $5,887 (69%) from a week ago. Panamax rates ended last week averaging $6,397/day, an increase of $1,434 (29%) from a week ago. Supramax rates ended last week averaging $9,170/day, an increase of $764 (9%) from a week ago. Handysize rates ended last week averaging $5,663/day, an increase of $255 (5%) from a week ago.

Looking at dry bulk cargo trends in specific detail, a particularly large amount of Australian iron ore cargoes and Indonesian thermal coal cargoes surfaced in the market last week. In total, 18 Australian iron ore cargoes surfaced in the market last week. This was 5 less than surfaced during the previous week but still a very strong amount. The Australian iron ore cargoes will be shipped to various buyers in Asia -- primarily to buyers in China. In addition, 19 Indonesian thermal coal cargoes came to the market last week. This is 9 more than surfaced during the previous week. The Indonesian thermal coal cargoes will be shipped to various buyers in Asia.

In China, recently data from the China Iron and Steel Association (CISA) shows that steel production rebounded. Average daily crude steel production at China's key steel mills totaled approximately 1.82 million tons during August 1 to August 10. This is up moderately from the 1.76 million ton average seen during the previous eleven days and is close to the 1.84 million ton record set at the end of June. Several new infrastructure and railway projects have been approved in China in recent months, and the government also continues to work towards further stimulating the housing market. This year’s substantial decline in global iron ore prices has allowed profit margins at China's steel mills to remain much improved from the start of this year. Chinese steel production and demand for imported iron ore cargoes in the dry bulk shipping market is set to remain very strong through the end of this year.