Capesize freight rates dropped further on lower bookings, despite Brazilian miners making more fixtures but failed to support higher rates.
The Capesize 5 time charter average, then dropped by $1,702 day-on-day to $40,518 on Wednesday, after a choppy market.
The Baltic Dry Index (BDI) also fell by $89, down 2.40% day-on-day, to $3,618, due to softening freight rates.
Freight under pressure despite fixtures
Freight rates continued to decline despite several fixtures done in the Pacific market but eased on lower rates due to competitive round trips.
There were some fresh enquiries from eastern Australia, Malaysia and Indonesia but failed to drive freight upward, while there were some concerns over typhoon development off China.
The Atlantic market also saw falling freight rates, despite a large number of fixtures from Vale for the H1 October laycan in the key Tubarao to Qingdao route.
However, the bids and offers were moving a lower range, after market concerns over lower iron ore demand in China from the slow steel demand.
Bunker prices flat amid mixed market
The bunker prices stabilized on mixed market outlook, as the price of VLSFO were static at $544/mt in the port of Singapore.
Brent crude prices went above the $72 per barrel level, due to the scramble to bring back oil production from Hurricane Ida, while Libya’s oil workers protest was estimated to lead an 800,000 barrel per day loss, depicting a supply tightness in the market.
However, some market participants believed that the shortfall can be supplied by other spare capacity from Russia and US production, though US crude stockpiles was expecting a draw this week from better consumption.