Capesize freight rates continued its bull run due to the rally in the physical market with much improvement seen in the Atlantic market.
The Capesize 5 time charter average then jumped by $4,249 day-on-day to $22,841 on Thursday, due to firming rates in both the Pacific and Atlantic basins.
The Baltic Dry Index (BDI) also surged up by 12.55% or 179 points day-on-day to 1,605 readings, following the strong upward momentum of freight rates.
Improving market fundamentals
The Atlantic market saw thinner ballaster list, while there was supply tightness for October laycans over the Brazil to China route.
Thus, trade sources expected the tonnage tightness for October to last for a while, which supported higher freight rates for the Brazilian iron ore route.
Meanwhile, the Pacific market was pushed up by strong cargo list, where major miners and operators were active in the market, seeking for vessels to move iron ore cargoes.
VLSFO prices dip slightly on slow demand
VLSFO prices fell slightly by $0.50/mt day-on-day to $327/mt in the port of Singapore, amid slow bunker demand.
On the contrary, the crude oil prices rallied due to the recent outages on offshore oil production caused by Hurricane Sally, then drawdown in oil inventory and firm output cut from OPEC +.
As such, the Goldman Sachs went bullish on oil, citing a possible deficit of around 3 million bpd in Q4 and predicted Brent Crude prices to reach $49 per barrel by the end of 2020.