Capesize paper market traded on narrow range as trade participants were concerned over several holidays in Far East in coming days.
Thus, the Capesize 5 time charter average dropped by $150 day-on-day to $8,381 on Friday, as liquidity dried up ahead of the many holidays in Asia that limited shipping activities.
Some Capesize demand had surfaced in Japan, but most were serving under Contracts of Affreightment for Japanese steel mills, which might suppress the freight rates.
Not much offers
In view of coming holidays in Asia, there were few offers in the market that support freight rate despite decent volumes coming out from Brazil and West Africa.
There was also a standoff between shipowners and charterers in the key Tubarao to Qingdao route, where charterers are trying to break $10/wmt levels now, but owners are trying to resist.
Rio Tinto was heard to be still active in the Pacific market in trying to move iron ore out of west Australia, but no concrete fixture done yet.
Due to the few offers in the market, shipowners were heard to prefer to do ballasting instead.
Low bunkers on sluggish freight market
VLSFO bunker prices moved downtrend with further losses by $3.50 to $252/mt in the port of Singapore.
Bearish global outlook had kept bunker prices low with lower consumers demand from the social distancing to contain COVID 19 as well as low crude prices from previous prices war.
Thus, Goldman Sachs was expecting another oil price crash ahead over the next 3-4 weeks as the June WTI maturity in one month.
Downstream demand will remain a concern amid the supply glut situation where oil producers had nowhere to store oil and might be forced to shut down in-line with lower demand.