Capesize freight rates rebounded again in the volatile market, due to better market optimism over the Q3 period.
The Capesize 5 time charter average, then hiked up by $1,051 day-on-day to $33,069 on Monday, with some improvement seen in the physical market.
The Baltic Dry Index (BDI) then spotted a gain of 2.52% day-on-day, up 80 points to 3,255 readings, due to better freight rates.
Positive expectation for Q3
More trade participants joined in market optimism for a better Q3, expecting more iron ore exports from suppliers with less interruption from unfavorable weather conditions.
This optimism translated to stronger rebounds in both basins, with constant freight rates gained in the Pacific market for the key western Australia to China route.
On the contrary, the Atlantic market experienced thin activities but market sentiment was lifted with anticipation of higher iron ore shipments for Q3, as miners ramped up production to meet their annual guidance.
Bunker prices draw strength from firm crude
The bunker prices continued to rise on stronger crude market, as the price of VLSFO inched up by $1.50/mt to $546/mt in the port of Singapore.
The Brent Crude oil prices extended its bullish run and sat above the $75 per barrel level, as market sentiment remained positive on Q3 2021, with the falling US oil inventory.
Though, the tight supply might ease as the OPEC might gradually increase output after their next meeting on July 1, while the US-Iran talks might reach an outcome putting additional Iranian oil supplies in the market by Q4 2021.