Capesize freight rates dipped on persisted weakness, though there was some steady shipping demand in physical market.
The Capesize 5 time charter average, then fell by $1,071 day-on-day to $59,955 on Tuesday, following a series of corrections.
The Baltic Dry Index (BDI) extended losses and dropped slightly by $18, down 0.38% day-on-day, to $4,714, due to softening freight rates.
Freight rates to firm on rising coal demand
Freight rates came under pressures in the paper market, despite growing coal demand to move shipments from eastern Australia.
However, the tonnage was held up by long shipping queues and delays in loading and discharging operation at ports, according to mining companies.
In the meantime, more ballasters were heard to head west toward the Atlantic market, despite of the lower iron ore prices and Vale’s intent to slow down iron ore production in Q4, due to lower margins.
Bunker prices slide for slight corrections
The bunker prices went into correction after recent rally, as the price of VLSFO dropped by $6/mt to $619/mt in the port of Singapore.
The decline was linked to soften crude prices as market concerns over weaker China’s GDP readings and a drop in US industrial productions.
In the meantime, some trade participants believed the correction as temporary due to market profit-taking practices, as crude prices remained firm above $80 per barrels.