Capesize freight rates rebounded with gains in both basin on market optimism despite some attempts to cool down the rally.
The Capesize 5 time charter average then grew up by $954 day-on-day to $34,762 on Friday, due to good shipping fundamentals.
The Baltic Dry Index (BDI) then rose by 1.38 % or 38 points on-day to 2,788 readings, due to better freight rates.
Strong FFA, muted physical market
In contrast to the strong FFA, the physical market was quietened due to lack of fresh enquiries apart from the usual key routes.
Thus, the Pacific market saw little fresh cargoes except for the key western Australia to China route with mining majors like Rio Tinto and BHP in fixing vessels for May laycan.
Meanwhile, the Atlantic market spotted better fresh shipping demand and thinner tonnage list, though there was standoff between owners and charterers for freight rates out of Brazil.
Bunker prices flat over mixed outlook
Bunker prices had stabilized in the volatile market, as the price of VLSFO went flat at $496.50/mt in the port of Singapore.
Oil demand recovery remained in doubts over resurgence of Covid cases in India, as some market experts estimated a fall nearly 20% of Indian diesel and gasoline consumption in April, following the renewed lockdowns.
However, there were better economic data from Eurozone such as the nine-month high Purchasing Manager Index recorded at 53.7 reading during April, while trade sources are expecting higher gasoline demand for the US during summer season.