Capesize rates were back to the $10,000 level again, on the back of robust shipping demand in both basins.
Thus, the Capesize 5 time charter average rose by $1,534 day-on-day to $10,676 on Thursday, continuing the bullish run since the start of the week.
Follow in the bullish run, the Baltic Dry Index (BDI) soared by 9.82% to the 839 points on Thursday, reaching almost a two-month high since late April.
Pacific market to maintain the bullish momentum
The ten consecutive days of bull run was due to better shipping demand in the Pacific market where major miners were active in the key west Australia to China route.
At least two vessels were fixed among Rio Tinto and Roy hill for the west coast Australia to Qingdao route at the $6.10/wmt-$6.30/wmt range for later June laycan, up 30 cents/wmt on-day.
Going forward, more miners are expected to seek vessels for the key west Australia to China route due to better iron ore demand, despite a slowdown of steel demand in southern China from heavy rains.
Likewise, the Atlantic market offered further supports to the bullish Capesize market as a flurry of fixtures were done by mid-week at the key Brazil to China route.
Bunker prices flatten on crude oil volatility
VLSFO prices were unchanged at $323/mt at the port of Singapore, following the recent decline of the crude oil prices as demand fell.
As such, the Brent crude prices dropped under the $40 per barrel level to $38 per barrel on Friday, while the WTI slid toward $35 per barrel, following the bearish global oil demand.
According to oil consultancy firm, Rystad Energy, the upstream oil & gas investment is expected to reach a 15-years low at $383 billion this year, due to lower oil demands from lockdowns and the oil prices crash that discouraged further explorations of oil wells.