Capesize freight rates paused for a breather from the bullish run as market participants proceeded with profit takings.
Thus, the Capesize 5 time charter average surged by $1,337 day-on-day to $24,178 on Friday, amid the market cooldown.
Then, the Baltic Dry Index (BDI) jumped by 3.86% or 62 points day-on-day to 1,667 readings on good shipping fundamentals.
More upside to come
Many trade participants were optimistic about the market due to improving fundamentals after freight rates made its second big jump for the year since the previous rally in June.
However, the trading volumes seemed to cool off for the week ended at Sep 25, due to some profit takings activities.
The Brazil to China route managed to attract much market interests with firm rates from thinner ballaster list. Major miner, Vale was heard to fix a few vessels for late Sep and mid-Oct laycans at around the $19-$20.50/wmt range.
Meanwhile, there was healthy shipping demand in the Pacific as well, though there was some cooldown of trading activities after the recent fixing spree.
VLSFO prices gain on firmer crude oil
VLSFO prices gained by $8.50/mt day-on-day to $335.50/mt at the port of Singapore, due to the recent strengthening of crude oil prices.
This was due to crude oil prices bouncing back to the $40 per barrel level due to the recent inventory draws and outages to oil production caused by hurricanes.
However, the rally was soon cut short by market concerns over second wave of Covid-19 among European nations that threatened economic recovery and oil demand.