Capesize freight rates flattened out and rebounded from previous slump with much improvement in the paper and physical markets.
The Capesize 5 time charter average rebounded slightly by $30 day-on-day to $17,151 on Wednesday, due to plenty of buying interests that pushed up rates.
The Baltic Dry Index (BDI) then was almost flattish and dipped slightly by 0.30% or 4 points day-on-day to 1,346 readings.
Rebounding from two-week drop
Market sentiment has improved on bullish paper market as the market seemed to bottom out, though the physical market still lacked cargoes and activities.
According to trade sources, there was a standoff between owners and charterers in the Pacific market, which affected rates.
Though there was decent shipping demand to move iron ore cargoes from west Australia to China route, as miner like Rio Tinto remained in the market in seeking for vessels.
There were also some shipping inquiries to move coals from Australia to India, following the restriction on Australian coal imports to China.
For the Atlantic market, more trade participants were focusing on H2 November laycan with indicative freight for the Brazil to China route heard at mid-$16/wmt.
VLSFO prices flat on mixed market outlook
VLSFO prices remained flat at the $340/mt at the port of Singapore, amid mixed market outlook in oil demand.
There was some crude prices uptick after an inventory draw recorded by Energy Information Administration (EIA) at a decline of 1 million barrels for the week ended on Oct 16.
This spurred the Brent Crude prices to reach around $42 per barrel level, while the WTI Crude prices at the $40 per barrel level.
However, the rising coronavirus cases continued to weaken oil demand as affected nations imposed stricter social distancing measures to contain the second wave of outbreaks.