Capesize freight rates rebounded on better fixtures in the physical market that supported an uptick in the paper market.
The Capesize 5 time charter average then rose by $302 day-on-day to $18,606 on Tuesday, due to improving market sentiment on the physical market.
The Baltic Dry Index (BDI) followed the minor uptick in Capesize and inched up 0.78% or 11 points to 1,413 readings.
Firmer rates among fixtures
A series of fixtures were done at higher rates that strengthened the market sentiments, whereas higher bids were also seen from Brazilian miners to move iron ore cargoes to China.
In the Pacific, major miners like Rio Tinto and BHP had fixed several vessels at higher rates for the key west Australia to China route.
For instance, Rio Tinto was heard to secure two vessels for early November laycan for the west Australia to Qingdao route done at indicative freight between the $7.80/wmt to $8/wmt range.
On the contrary, the Atlantic market was quieter but Brazilian miner, Vale remained active in the market seeking for November laycans on the key Brazil to Qingdao route, with higher biddings at the $15/wmt level.
VLSFO prices drop on bearish sentiment
VLSFO prices continued the slump and went down further by $5/mt to $325.50/mt at the port of Singapore, in line with the weak crude oil prices.
Crude oil prices went south despite some little upticks from supply disruption as oil producers shut down offshore platforms to prepare for tropical storm Zeta at the Gulf of Mexico.
Meanwhile, most trade participants remained bearish on oil demand outlook in view of the rising second wave of coronavirus pandemic that affect demand and economic activities.