Capesize freight rates rose further on better market outlook, with gains recorded in both basins.
The Capesize 5 time charter average then rose by $313 day-on-day to $17,054 on Monday, after a fresh wave of buyers entered market at the afternoon session.
The Baltic Dry Index (BDI) also rebounded higher by 1.17% or 23 points to 1,983 readings, due to better freight rates from smaller vessels.
Slow start to the week
Despite the better market outlook, the Atlantic market started the week sluggishly, with market concerns over lengthy ballaster lists, though it had been reduced over the weekend.
Shipowners were heard to be less keen in ballasting vessels toward west, as the Pacific trip became more profitable, while the high bunker prices discouraged vessels to sail west of Singapore.
Meanwhile, the Pacific market seen more demand for coal shipments from Indonesia and east Australia, while all three mining majors were active in seeking vessels to move iron ore cargoes from western Australia.
Bunker prices rally on market optimism
Bunker prices continued to rally on market optimism, as the price of VLSFO hiked up by $2/mt to $532.50/mt in the port of Singapore.
Oil demand optimism prevailed in the market with better China’s daily refinery throughput that rose by 15% from a year ago during the Jan-Feb 2021.
Thus, Citigroup raised its price prediction for Brent crude at $80 per barrel in coming months, though there were some market concerns over another weekly buildup of US oil inventory, due to slow recovery in oil refining after the winter storm in Texas.