Capesize freight rates slipped on the lower physical market and as more buyers were trying to close short positions for profit-taking.
The Capesize 5 time charter average then dropped by $496 day-on-day to $16,252 on Friday, as the physical market continued to lose values.
The Baltic Dry Index (BDI) then dropped further by 2.37% or 33 points day-on-day to 1,362 readings from weakening freight rates.
Weak physical market
Due to the oversupplied market, the freight rates were on a downtrend which caused the time charter equivalent rates toward $17,000 per day or lower.
Thus, some shipowners will have to consider ballasting some of their vessels toward Brazil due to low freight rates.
Meanwhile, it was heard that Rio Tinto and FMG managed to fix a vessel each for the key west Australia to China route at late Sep laycan.
Likewise, the trading activity remained thin in Atlantic market with only Vale heard to fix a vessel for Tubarao to Qingdao route at late Sep laycan.
Bunker prices rebound despite low demand
VLSFO prices rebounded from recent losses with gains of $3/mt day-on-day to $337/mt at the port of Singapore, despite softer crude oil price movement.
So far, only the bunker prices of Singapore and Hong Kong were registered at positive as other major bunkering ports in Europe, the States and Middle East followed a downtrend price movement.
For instance, the bunker demand of major bunkering port of Fujairah dropped to 400,000 mt in June 2020 as compared to 700,000 mt recorded last year, based on data from Glander International Bunkering.
In the meantime, Brent crude oil prices continued its slump toward the $42 per barrel, while the WTI crude prices slid back toward $39 per barrel, due to market concerns over poor US economic data with little improvement in jobless rates and oil demand.