The Capesize market suffered a slip up after recent rally with less shipping enquires in both the Pacific and Atlantic market.
The Capesize 5 time charter average then dropped by $304 day-on-day to $20,383 on Wednesday, due to some selling pressure before seeing a mini revival later at afternoon session for better rates.
Thus, the Baltic Dry Index (BDI) booked slight gains with readings inched up by 0.82% day-on-day to 1,475 readings on mid-week.
Less shipping enquires on both basins
Despite decent demand in the Pacific market, there was lack of fresh enquires to support the freight rates.
Major miner like Rio Tinto was heard to fix at least two vessels for the key west Australia to China route for mid-Aug laycan with freight rates at around $8.25/wmt on Wednesday, down 45 cents/wmt day-on-day basis.
The Atlantic market did not fare better with lower offers as market participants were concerned over lengthy ballaster list.
Therefore, the indicative freight levels heard on the Brazil to China route were at the low $17.75/wmt to $18.50/wmt range.
Bunker prices rebound sharply on huge crude drawdown
VLSFO prices made a sharp rebound following the rally in crude oil prices, with gains of $20/mt on-day to $353/mt at the port of Singapore.
Crude oil prices went higher due to huge drawdown of crude inventories which the Energy Information Administration (EIA) reported a decline of 7.4 million barrels for week ended at July 31.
Market participants interpreted the huge drawdown as improvement in oil demand as global economy recovered gradually from Covid-19 and pushed Brent crude oil prices toward $45-46 per barrel, while WTI crude toward the $43 per barrel.