Capesize freight rates continued to slide on muted trading activities, amid softening physical market.
The Capesize 5 time charter average then slipped further by $458 day-on-day to $15,675 on Friday, after some short selling in the paper market.
The Baltic Dry Index (BDI) also declined further by 1.22 % day-on-day or 18 points to 1,452 readings on weaker freight rates.
Cyclone concerns amid thin physical market
Market fundamentals remained weak with long ballasters lists and low shipping demand, amid bearish market sentiments.
Trade participants were concerned about the cyclone development near Pilbara coastal region of Australia, which might cause iron ore terminals to vacate vessels as seen earlier this year.
Thus, most market participants waited on the sidelines with cyclone threats, amid low cargo list with only one major miner heard to be active in the market.
In the meantime, the ballasting tonnage list had built up in the Atlantic market, which depressed freight rates further and resulted fixtures to be done at low $17s/wmt for the key Brazil to China route.
Bunker prices fall again on bearish oil demand
The bunker prices plunged again on bearish outlook, as the price of VLSFO went down further by $1.50/mt to $451/mt at the port of Singapore.
Oil demand outlook were bearish, dragged down by slow coronavirus vaccine rollout and the resurgence of the pandemic that resulted in stricter lockdowns in countries.
However, some market participants remained optimistic on oil demand recovery, as US oil inventories continued to drop toward the five-year average, which might indicate a rebalance of the oil market.