Capesize freight rates got off to a slow start at the week, as most participants were in collecting mood, but nevertheless the market fundamentals remained good with firm rates.
The Capesize 5 time charter average, then rose by $977 day-on-day to $50,708 on Monday, as the index went above the psychological $50k mark.
The Baltic Dry Index (BDI) then went off with record-breaking momentum reaching $4,147, up 1.34% day-on-day, due to the freight rally.
More interests for ballasting west after recent rally
Market participants observed more vessels ballasting west of Singapore over the weekend, possibility to the Atlantic basin which gotten all the market headlines last week for gains.
However, all the hype for Atlantic seemed to slow down at the start of the week, with much market talks but failed to conclude to fixtures.
Thus, some trade participants were concerned if the recent slump in iron ore prices had dampened market optimism for moving iron ore shipments from Brazilian miners.
Similarly, muted market activities were also seen in the Pacific basin, though cargo list was healthy with miners seeking actively for vessels.
There were also fresh enquiries from South Korean participants, though market were concerned over typhoon development off Jeju island.
Bunker prices recover from Covid Delta fears
The bunker prices recovered some loss grounds, as the price of VLSFO rose by $11/mt day-on-day to $504.50/mt in the port of Singapore.
The bunker prices followed the volatile crude market as market fears for Covid Delta variant waned as China reported near zero new cases that lifted market confidence on oil demand.
Some trade participants also highlighted that the market had moved toward autumn which is typical good market for commodities like oil and base metals.