Capesize freight rates started the week slow due to thin trading activities from holidays periods in China and Greece.
The sluggish market movement might halt the positive momentum on freight rates by the end of April and only recovered with the returns of the trade participants from holidays.
The Baltic Dry Index (BDI) however managed to close on high note by end-April with gain of 1.53% or 46 points on-day to 3,053 readings.
Market standstills amid holidays period
Despite the holidays lull, some trade participants expected better shipping demands in Pacific after the holidays period with plenty of fresh enquiries for moving iron ore cargoes.
It was heard that some of the major miners were seeking vessels for H2 May laycan at the key western Australia to China route, while there was also some coal shipping demand from east Australia.
However, the Atlantic seemed to have weakened over market concerns of growing ballasters lists, while there were some market talks of Vale in seeking vessels for end May laycan at the key Brazil to China route.
Bunker prices drop further over weak outlook
Bunker prices slumped on weak market outlook, as the price of VLSFO dropped by $8.50/mt on-day to $498.50/mt in the port of Singapore.
Much of the market concern focused on India, where the daily infection rate surged to new record high and raised questions about the country’s oil demand and raw material demand for steelmaking.
As such, India’s oil imports from OPEC dropped by 12% on-year to an average of 3.97 million bpd for the 2020/2021 fiscal year ended in March 2021, a 20-year low, due to the country’s policy of import diversification away from the Middle Eastern producers.