Capesize freight rates ended the bullish run with slight dip after softening physical and paper market.
The Capesize 5 time charter average then dipped by $178 day-on-day to $28,652 on Tuesday, despite a late push in the paper market after market talks of Vale’s booking around 8-10 ships.
The Baltic Dry Index (BDI) however continued to rally by 1.64 % or 40 points to 2,472 readings, due to better Panama and Supramax rates.
Cooling down of both basins after recent rally
Freight rates had crept down despite healthy cargoes list in the Pacific market, which resulted in good number of fixtures.
Mining majors were heard to be still active in the key western Australia to China route for H1 May loading windows as they tried to fulfill the annual guidance, despite a lacklustre Q1 iron ore production levels.
However, the Atlantic basin faced thinner market activities, amid tightening ballaster list. As such, some trade participants expected lower shipping demand during the H1 May out of Brazil, after the recent flurry of fixtures.
There was also some market speculation that the Capesize market might benefit from the strong Panamax and Supramax market in the near term.
Bunker prices rebound from recent losses
Bunker prices rebounded from recent losses, as the price of VLSFO rose by $3/mt to $511/mt in the port of Singapore.
Despite the uptick, oil demand outlook was affected by new waves of infections that resulted renewed lockdowns in Europe and India.
However, the promising US economic data and China’s recent high crude oil imports had lifted market sentiments, which led consultancy firm, IHS to predict Brent Crude prices to range $60-$75 per barrel by 2022.