Capesize freight rates improved on better market outlook, supported by better Pacific basin, though Atlantic basin was depressed by the long ballaster list.
The Baltic Dry Index (BDI) then went up slightly by 0.21% or 6 points on-day to 2,801 readings, due to the improving freight rates.
Improving Pacific basin amid sluggish Atlantic market
The market received a boost from the better Pacific market with higher TCE holding than the Atlantic market with decent iron ore shipping demand in key western Australia to China route.
There were some enquiries for coal shipping demand out of eastern Australia to support freight rate, though there was still a standoff between owners and charterers in the Pacific basins.
On the contrary, the Atlantic market was affected by growing ballasters list that depressed freight rates for May loading shipment.
In the meantime, some market participants were heard to be waiting for further iron ore shipping demand from Vale before entering the market.
Bunker prices slump on weaker crude
The bunker prices reversed into losses, as the price of VLSFO plunged down by $13/mt to $487.50/mt in the port of Singapore.
The lower bunker prices followed the weak crude prices due to a build up of US crude inventory by 1.3 million barrel weekly against market estimate of 2 million barrel decline.
Meanwhile, market participants were concerned about the growing coronavirus cases in Asia with India in the epicentre that might slow down the oil demand recovery in contrast to improving demand in the West.