A close examination of recent spot chartering activity shows that 115 dry bulk vessels were chartered in the spot market last week. This is well above the 87 vessels that were chartered during the previous week. Last week's vessel chartering activity included the chartering of 35 capesize vessels (5 less than the previous week), 58 panamax vessels (33 more than the previous week), 12 handymax vessels (6 less than the previous week), and 10 handysize vessels (6 more the previous week). Despite the large increase in chartering activity, only panamax rates were able to find support. However, this week is likely to see rates for all of the vessel classes find support. Capesize rates ended last week averaging $8,308/day, a decrease of $794 (9%) from a week ago. Panamax rates ended last week averaging $7,735/day, an increase of $811 (12%) from a week ago. Supramax rates ended last week averaging $9,651/day, a decrease of $496 (5%) from a week ago. Handysize rates ended last week averaging $7,320/day, a decrease of $227 (3%) from a week ago.

Looking at dry bulk cargo trends in specific detail, a particularly large amount of Australian iron ore cargoes, North Pacific fixtures, and Indonesian thermal coal cargoes surfaced in the market last week. In total, 24 Australian iron ore cargoes came to the market last week. This is 5 more than surfaced during the previous week. The Australian iron ore cargoes will be exported to buyers in Asia and mostly to Chinese buyers. In addition, 14 North Pacific cargoes came to the market last week. This is 10 more than surfaced during the previous week. The North Pacific cargoes consist of various commodities including grain and cargo cargoes. The cargoes will be shipped to various buyers in Asia. 14 Indonesian thermal coal cargoes also 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 the steel market, Chinese steel production has remained very high which continues to result in extremely strong demand for imported iron ore. Recently released data from the China Iron and Steel Association (CISA) shows that average daily crude steel production at China's key steel mills totaled 1.80 million tons during October 1 to October 10. This is a large amount and up slightly from the average seen during the previous twenty days. Also encouraging is that Chinese steel prices have finally increased. The average price of 3.0mm hot rolled coil is now 3,185 yuan/ton ($520), 15 yuan more than a week ago. This marks the first time that Chinese steel prices have increased since the beginning of August.