Capesize freight rates continued to rise with the return of trade participants from holidays and on firmer shipping fundamentals.
The Capesize 5 time charter average then increased by $1,109 day-on-day to $20,962 on Tuesday, after a buying spree in the trading session.
The Baltic Dry Index (BDI) also hiked up slightly by 0.97% or 20 points to 2,092 readings, given the better freight rates.
Bullish outlook in key routes
Trade participants expected higher iron ore shipping volumes from Brazil and Australia in near term to meet robust Chinese steel demand.
For the Pacific market, there was lots of fresh shipping enquiries from major miners and operators for the key western Australia to China route.
Likewise, higher biddings were heard out of Brazil for May loading windows, which drove the indicative freight rate for the Brazil to China route for early May laycan at around $22/wmt.
However, there was some market concerns on whether more ballasters will continue to head toward Brazil which may suppress further freight upticks.
Bunker prices soften over supply concerns
Bunker prices continued to move downward on weaker crude price movement, as the price of VLSFO dropped further by $1.50/mt to $485/mt in the port of Singapore.
Market sentiments were weakened by supply concern on the return of Iranian crude, while oil demand recovery remained in doubts over renewed lockdowns in Europe and India.
However, Goldman Sachs remained bullish on oil and expected strong demand at the latter half of year, with sufficient demand to absorb the excess barrels from OPEC+.