Capesize freight rates spotted slight gains on the improving physical market, especially from better shipping demand in the Pacific market.
The Capesize 5 time charter average then inched up by $232 day-on-day to $32,825 on Monday, as the paper market maintained its bullish run since last week.
The Baltic Dry Index (BDI) also hiked up slightly by 042% or 12 points on-day to 2,881 readings, amid firm freight rates.
Short trading week due to holidays
The trading week was dotted by public holidays occurred in the Europe and Singapore, which might slow down the upward momentum for shipping demand.
Nevertheless, the Pacific still boosted with healthy cargo demand for moving iron ore from western Australia to China route, which resulted in various fixtures for June laycan.
However, the Atlantic market was largely muted with market concerns over the lengthy list of ballasters that placed downward pressure on freight rates.
Meanwhile, some trade participants were also concern over the recent dip in iron ore prices due to Chinese authority curb on commodity prices, which might affect iron ore shipments.
Bunker prices rebound on market optimism
The bunker prices rebound after sharp gains in crude, as the price of VLSFO jumped by $12.50/mt to $483.50/mt in the port of Singapore.
The market sentiment was getting more bullish over better oil demand with higher vaccination numbers and doubts over lifting of Iranian trade sanctions.
Even with additional Iranian oil exports, Goldman Sachs expected the excess to be absorbed by good oil demand which may push Brent crude prices toward $80 per barrel in Q4.
In the meantime, the US vaccination rate was also encouraging with almost 40% of the population fully vaccinated which may drive up oil consumption in summer season.