Capesize freight rates fell on market volatility, despite some upward momentum seen in the C5 in the paper market.
The Capesize 5 time charter average then dipped slightly by $112 day-on-day to $12,203 on Thursday, amid a choppy session for the FFAs market.
Thus, the Baltic Dry Index (BDI) also dropped slightly by 0.53% or 9 points to 1,700 readings, amid softening Capesize freight rates.
Good demand in the Pacific basin
Despite the volatile market, there was still healthy demand in the Pacific market, which led to some trade participants to believe that the market had bottomed out.
Thus, there was some good bids in the market, but hardly any fixtures had been confirmed with the indicative freight heard around $7.15-$7.50/wmt on the west coast Australia to Qingdao route.
Meanwhile, the Atlantic market suffered from weak fundamentals, though there had been some reduction in the ballasters sailing toward the west of Singapore.
Shipowners were heard to lower offers for key Brazil to China route in view of the long ballaster list projected to arrive in mid-March.
Bunker prices rebound on strong crude support
Bunker prices rebounded sharply from previous loss, as the price of VLSFO surged up by $10.50/mt to $528.50/mt in the port of Singapore.
High crude oil prices continued to support firm bunker prices, due to sharp drop of US crude output last week from the winter storm.
Despite the price support, some market participants were concerned over falling bunker sales as World Fuels Services reported lower bunker sales for the fifth consecutive year in 2020.
The global leader in marine refueling firm recorded a total bunker sale of 17.5 million mt during 2020, down 16.2% on-year, due to pandemic and lower average fuel prices.