Capesize freight rates continued to book gains with improving demand in the Pacific amid thin trading activity.
The Capesize 5 time charter average, then inched up by $815 day-on-day to $28,014 on Monday, recovering from recent corrections.
The Baltic Dry Index (BDI) reflected the freight improvement with hike of $3, up slightly by 0.11% day-on-day, to $2,718.
Sluggish demand amid bad weathers off northern China
Despite some improvement in shipping demand, the port delays continued to worry trade participants, though impacts were heard to be minimal among northern Chinese ports.
There were also more enquiries from Japanese end-users to pull cargoes from Western Australia, though there were market doubts on slowing steel demand in China that restricted raw materials for steelmakings.
Meanwhile, the Atlantic market continued to weigh down by long list of ballasters that dragged down freight rates, while Chinese mills’ preferences for low and medium grade fines also sowed market concerns over lower demand for Brazilian high grade fines shipments.
Bunker prices gain amid mixed market outlooks
The bunker prices rebounded amid market volatility, as the price of VLSFO rose by $11.50/mt to $617.50/mt in the port of Singapore.
Despite the uptick, the market outlook was mixed over more supplies entering the market, with US releasing of its Strategic Petroleum Reserves to ease rising crude prices amid the global power crunch.
Meanwhile, China, the world largest importer of crude oil, recorded lower import volumes at 8.9 million barrels per day (bpd) in October, as compared to 9.99 million bpd in September.
The decline in import was linked to Chinese authority’s crackdown on the illegal trade of crude import quotas and high international oil prices that deterred purchases.