Capesize rates slipped on low volumes despite a flurry of physical fixture done over the key Brazil to China route.

Thus, the Capesize 5 time charter average went down by $207 day-on-day to $19,693 on Tuesday, after the paper market failed to move into positive territory from increase of miner’s fixtures.

Then, the Baltic Dry Index (BDI) also dipped slightly by 0.75% day-on-day to 1,586 readings on softer Capesize freight rates.

 

Busy day for the Brazil to China route

Brazil’s Vale was heard to fix around five vessels for the Tubarao to Qingdao route during the first-half September laycan at low-mid-$17s/wmt.

The freight rates were suppressed by the lengthy ballaster list for the first-half of September laycan, however the bid and offers were higher for the second half September, heard around at 18/wmt and $19/wmt, respectively.

The higher fixtures may imply that the miner tried to catch up with its iron ore shipment for the second half of the year to fulfill its annual guidance for 2020.

In contrast, there were scant shipping activity in the Pacific market that failed to translate to any fixtures, while there were some market concerns over port congestion situation in China.

 

Bunker prices rebound on better market optimism

VLSFO prices rebounded to gains of $2/mt day-on-day to $353/mt at the port of Singapore, on better market optimism for oil demand.

OPEC + reported high compliance in its output cuts between 95%-97% that resulted in rising crude oil prices.

In the meantime, the American Petroleum Institute (API) also reported higher drawdown of crude inventories by 4.3 million barrels to 512 million barrels, beating market expectation for a 2.7 million barrel draw.

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