Capesize freight rates steadied toward year-end, amid thin market activities due to seasonal holidays.
The paper market however was well-bid and inched higher, as some market participants were optimistic on the high iron ore prices and steel demand for the new year.
There were some concerns over the bad weather off China’s coastal areas, which might lead to port closures as the cold wave swept throughout the country.
Mixed market for start of the new year
The Pacific market saw some fixtures done, notably from major miners like Rio Tinto and FMG for west Australia to China route for late Dec and early Jan laycan.
Moreover, Vale was heard to secure vessel for Malaysia to China route through its iron ore distribution terminal at Teluk Rubiah.
Meanwhile, the Atlantic basin was muted with little shipping activities out of Brazil, while market participants were concerned over rainy weather in Brazil that might affect iron ore shipping demand.
In the meantime, some trade sources were optimistic over dry bulk freight rates for 2021, as they expected the short supply of container shipping might bring more shipping demand to dry bulk segment.
Bunker prices rangebound despite higher crude oil movement
The bunker prices remained stable, despite higher crude price movement as the price of VLSFO were flat at $414/mt at the port of Singapore.
The Brent crude prices headed up around $52 per barrel level, despite doubts of oil demand recovery in 2021, as new Covid strain complicated the demand outlook for the new year with harsher lockdowns.
Thus, some market experts were bearish about oil demand in 2021, expecting a pre-pandemic oil demand to return in late 2022 or early 2023 instead.