Capesize rates stayed above the $30,000 level due to the recent miners’ fixing spree in moving iron ore cargoes for arrival in China.
The Capesize 5 time charter average reflected the firm freight market and spotted a gain of $438 day-on-day to $31, 377 on Thursday.
This left the Baltic Dry Index (BDI) to seek new height and reached 1,823 points, up 1.11% day-on-day.
Signs of sluggishness in both basins
Despite the firm paper market, there was some signs of sluggishness in the physical market, as the Atlantic market saw scant activity levels.
Mining major, Vale remained active in the key Brazil to China route, but some downward movement was seen as the freight rate for Capesize ship to move 170,000 mt of iron ore from Tubarao to Qingdao was assessed at $19.50/wmt, down 50 cents/wmt.
In the Pacific market, only FMG and some operators were heard to be seeking ships for the key west Australia to China route.
There were also some market concerns about the bad weather in China and the 14-day quarantine requirement, which may affect shipping activities in near term.
Bunker prices stabilize on better oil demand
VLSFO prices continued to move upward and gained by $4.50/mt to $333.5/mt at the port of Singapore, following the stable crude price movements.
The Brent crude prices stabilized above the $42 per barrel, while the WTI maintained at the $40 per barrel mark, due to supply cut from OPEC +.
Meanwhile, Goldman Sachs expect oil demand to recover to pre-crisis levels by 2022 but expect crude oil prices to average around $35 per barrel for the year.