Capesize freight rates spotted slight gain on better shipping outlook on the Pacific market and demand for Brazilian iron ores.
Thus, the Capesize 5 time charter average then gained by $80 day-on-day to $23,813 on Tuesday, due to bullish market sentiment.
Then, the Baltic Dry Index (BDI) rose by 0.24% or 4 points day-on-day to 1,658 readings on better freight rates.
Better demand outlook after Golden Week holidays
Market participants expect better iron ore demand after the weeklong National Day holidays in China, especially on the demand for Brazilian iron ores.
So far, the prices of Brazilian iron ores had not rallied in a manner as seen in Australian cargoes and the Brazilian shipments typically peaked during the second half of the year.
Meanwhile, there is still a decent cargo list in the Pacific market, and more shipping enquiries were heard from the South Korean trade participants recently, due to recovery of the country’s steel operations.
On the contrary, a standoff was seen between charterers and owners in the Atlantic and the rates were date specific, while the freight indicated on the Brazil to China route was heard in the $19.75/wmt to $20.75/wmt range.
VLSFO prices book gains despite mixed outlook
VLSFO prices rebounded from losses and booked a gain of $2.50/mt day-on-day to $336/mt at the port of Singapore.
Rising coronavirus cases continued to hold back on global oil demand, as many European countries were taking steps to curb the second wave of COVID-19.
The low oil demand caused crude oil throughput to fall by 26.4% year-on-year among oil refiners in August, due to reduction in industrial and transport activities affected by the pandemic.