Capesize freight rates found supports in better shipping fundamentals in the Atlantic market with higher iron ore shipment volumes from Brazil.
This was due to better weather conditions in Brazil with the passing of rainy seasons to allow miners to ramp up productions for exports.
Meanwhile, the shipping participants were still returning to the market slowly after holidays seasons, which started the week off to a sluggish note.
More Brazilian iron ore shipments in March
Brazil exported more iron ore shipments in March 2021, due to better weather conditions and output recovery from miners.
The country shipped 28.4 million mt of iron ores in March 2021, up 18.2% on-month and up 34% on-month by marking the first monthly shipment increase after declining exports recorded during Jan-Feb period, according to the country’s Ministry of Industry, Foreign Trade and Services.
Production recovery from Brazilian miners like Vale had also contributed to the higher export volumes as the major miner tried to maintain its iron ore guidance at 350 million mt by end of 2021.
Meanwhile, the Pacific basin saw limited market activities, though all three major miners were heard to be seeking vessels on the key western Australia to Qingdao route.
Bunker prices dip on further output easing
Bunker prices reversed into loss on weak oil outlook, as the price of VLSFO dipped by $0.50/mt to $486.50/mt in the port of Singapore.
The weak market sentiment was due to sharp drop in crude oil prices over concerns that the market will be flooded by Iranian crude oil following the sanction re-negotiation with the US.
Meanwhile, more supplies were coming from OPEC+, as member states agreed to further easing of 350,000 bpd in May, followed by another 350,000 bpd in June and 400,000 bpd in July.