Capesize freight rates fell in prolonged correction period with bearish market outlooks, amid moderate shipping demand.
The Capesize 5 time charter average, then plunged down by $5,764 day-on-day to $64,417 on Friday, following another string of corrections.
The Baltic Dry Index (BDI) extended losses and dropped by $208, down 4.11% day-on-day, to $4,854, due to softening freight rates.
Freight rates slip on moderate shipping demand
Freight rates came under pressures from lower fixtures rates amid moderate shipping demand, which some trade participants expected that the price corrections had yet to find a floor.
The Atlantic market nosedived after Brazil’s Vale was heard to take fixtures for second half of November laycan, for the key Tubarao to Qingdao route.
Some trade participants were concerned about lower raw materials demand from China, due to reduced industrial activities and possible economic slowdown from power crunch and the ongoing steel output curbs.
Bunker prices grow further from global power crunch
The bunker prices rallied further on strong crude prices, as the price of VLSFO hiked up by $4/mt to $622/mt in the port of Singapore.
Brent crude prices went above $85 per barrel on persisted power crunch globally, while global petroleum inventory was heard to drop to lowest levels in seven years.
Despite the low oil inventory, the OPEC producers had no plans to raise supply more than the agreed 400,000 barrels per day (bpd), thus boosting further price upticks for crude.