Capesize rates continued to push forward with firm iron ore demand that pushed for more shipping activities in the Pacific market.
Thus, the Capesize 5 time charter average hiked up by another $310 day-on-day to $8,055 on Tuesday, for the second consecutive day-rise for the week.
Following the rally, the Baltic Dry Index (BDI) broke the 700 points level, after recording a day-gain of 2.29% to 714 points on Tuesday.
Red hot Pacific market
The recent rally had gotten to do with the robust shipping volumes in the Pacific market amid the good appetite from west Australian mining majors.
At least four vessels were fixed among miners like Rio Tinto and Roy Hill for the Western Australia- Qingdao route at around $5.65/wmt, up 5 cents/wmt from previous day.
However, there was some market concerns over lesser coal shipment to China, as the strict Chinese port policies discouraged traders from moving cargoes for the east Australia to China route.
On the contrary, the Atlantic market seemed more muted as most trade participants are focused on the July dates.
Bunker prices start to lose steam
After the OPEC + extension hype, the bunker prices had come off from recent oil rally and dropped by $11.50/mt day-on-day to $315.50/mt at the port of Singapore.
The drop followed the crude prices movement with the Brent crude prices slid back toward $40 per barrel, while the WTI fell toward the $37 per barrel level.
The recent oil price rally was more supply driven rather than demand driven and with the various lockdowns across the globe.
This prompted trade participants to expect a slow and gradual oil recovery as opposed to quick V-shape recovery.