It was another a bullish day for Capesize rates as the $30,000 level was broken due to firm shipping demand in moving iron ore cargoes.
With the return of Chinese trade participants from holidays, the Capesize 5 time charter average surged by $1,137 day-on-day to $30,778 on Monday.
The Baltic Dry Index (BDI) then peaked to the 1,794 points level on Jun 29, after a jump of 2.57% day-on-day, thanks to the robust Capesize market.
Growing interest for August dates
The Pacific market saw healthy shipping demand, with mining majors, Rio Tinto, BHP and FMG came out with fresh shipping enquires.
According to trade source, there was more market interest for the forward August dates which was heard to bid around the mid-$7s for full August dates.
In the meantime, a handful of fixtures was done with the indicative freight heard on the west coast Australia to Qingdao route heard in the $10/wmt to $10.20/wmt range.
On the contrary, the Atlantic market had a sluggish start for the week with limited enquiries, while freight rate on key Brazil to China route was very date specific.
For instance, the offers were in the range of high-$21s/wmt to $22s/wmt for end-July dates, while the offers were heard to drop under the $20/wmt level for early-August dates.
Bunker prices fall on depressed demand
VLSFO prices reversed into losses with drop of $6/mt to $318.50/mt at the port of Singapore, due to depressed oil demand.
Market participants were concerned over new spikes of coronavirus infection in many countries that lowered oil demand.
Following the bearish market sentiments, the Brent crude prices slid back toward $41 per barrel, while the WTI fell under the $40 mark, toward the $39 per barrel level.