Capesize freight rates recovered some lost ground, despite bearish market sentiment over softening demand and lengthy ballaster list.
The Capesize 5 time charter average, then inched up by $489 day-on-day to $27,199 on Friday, rebounding from recent slumps.
The Baltic Dry Index (BDI) followed market corrections and dropped by $54, down 1.95% day-on-day, to $2,715, due to weakening freight rates.
Better demand in the Pacific
The Pacific market drew the limelight on improving freight with healthy demand from miners to move iron ore from Western coast of Australia to China.
However, some trade participants were concerned over slowing steel demand in China due to the off-peak winter season as stricter sintering curbs were imposed on mills.
In the meantime, some trade participants were disappointed by lack of coal imports to China, though there was some relaxation of stranded Australian coal cargoes to unload in the otherwise congested ports in China.
Meanwhile, the growing list of ballaster began to worry trade participants in the Atlantic market, though there were some consistent enquiries coming from West Africa.
Bunker prices drop on market uncertainty
The bunker prices tumbled on the volatile market, as the price of VLSFO fell by $6.50/mt to $606/mt in the port of Singapore.
Market participants was spooked by possible release of around 60 million barrels from the US to calm crude prices amid the global power crunch crisis.
However, crude oil prices did not plunge but instead hike up further toward the $85 per barrel range. As OPEC were unlikely to boost output to ease prices, while Saudi Arabia took a lead to increase official oil selling prices for its Asian customers in December.