Capesize freight rates rebounded from previous session losses, due to handful of fixtures done on firmer rates.
The Capesize 5 time charter average inched up by RMB 244 day-on-day to $14,421 on Friday, as market confidence returned after a flurry of fixtures.
The Baltic Dry Index (BDI) then moved up slightly by 0.17% or 2 points to 1,196 readings, due to improvement in Capesize freight rates.
A better November and December
Some trades sources expect market to find floor with some upward momentum for the November and December, after the flurry of fixtures done at higher rates.
Mining major, FMG was heard to fix several vessels for the west Australia to China route around $6.75-$6.80/wmt, while Brazil’s Vale managed to secure a vessel moving iron ore from Malaysia to Vietnam for late November laycan at $4.35/wmt.
In the Atlantic, the Brazil’s long ballaster list showed some improvement, as some ballasting vessels headed toward Canada and the US East Coast from the Pacific, probably to secure some coal shipments.
However, there was some market concerns over the unseasonal rains that affected Brazilian iron ore productions and shipments toward year-end.
VLSFO remains static amid market uncertainty
VLSFO prices stayed flat at $339/mt in the port of Singapore, amid market uncertainty over US elections and rising coronavirus cases.
However, the crude oil prices managed to firm around the $40 per barrel level, while WTI crude oil prices hovered at the $38 per barrel level, amid the volatile market.
Market consensus believed that the Biden administration was less favorable to the oil market due to its focus on renewable energy and its plan to stop shale oil fracking.
However, the current girdlock in the Congress is likely to prevent the Biden administration for execute its campaign promises to pass more strict environmental measures in oil and gas sector.