Capesize rates stabilized at the $30,000 level, but the market remained at backwardation as some trade participants do not believe on the long-term strength of capes.
Thus, the Capesize 5 time charter average saw a small gain of $79 day-on-day to $30, 857 on Tuesday.
The Baltic Dry Index (BDI) also spotted small gain of 0.28% or 5 points to 1,799 points, the highest level seen this year.
More shipping demands out of Brazil for Q3 and Q4
Despite the small gains in paper market, trade participants expect more shipping demand from Brazilian mining major Vale in Q3 and Q4 as the miner maintained its production guidance unchanged for the year at 310-330 million mt.
To aid the rising shipment, the cargo loading operation had accelerated to 3-5 days from the previous 2-3 weeks waiting time, according to trade sources.
As such, Vale was heard to seek for vessels in moving iron ore for first-half August laycan at the Tubarao to Qingdao route.
Bunker prices fall on depressed demand
VLSFO prices rebounded with gains of $2.50/mt to $321/mt at the port of Singapore, following the upturn in crude price movements.
The Brent crude prices moved upward toward $42 per barrel, while the WTI regained the $40 per barrel mark, supported by a major draw in crude oil inventories.
According to the American Petroleum Institute (API), a draw down of 8.156 million barrels was recorded for the week ending June 26, beating market estimate of an inventory draw of 710,000 barrels for the week.