Capesize freight rates recovered from recent slump and drove up on better Atlantic basins, while market slowed down in the Pacific basin.
The Capesize 5 time charter average, then increased by $712 day-on-day to $30,972 on Friday, after some improvement in the trading session.
The Baltic Dry Index (BDI) also rose slightly by 0.58% day-on-day, up 19 points to 3,300 readings, due to the better freight rates.
Much need boost from the Atlantic market
The paper market rebound was supported by the firm Atlantic basin, which concluded some fixtures, leading some market participants to expect more iron ore shipment coming from Brazilian miners.
The recent demand had offset some of the long tonnage supply in the Atlantic basin, though the ballast list remained lengthy.
Meanwhile, the cargo list remained healthy in the Pacific, with good volumes of fixtures, though trade participants were heard to seeking late July to early August laycan.
Bunker prices rise on tight supply
The bunker prices continued to rise on firmer crude market, as the price of VLSFO increased by $7.50/mt on-day to $543/mt in the port of Singapore.
Furthermore, the VLSFO prices were supported by tight supplies among Chinese port like Zhoushan. As Platts expected China-based oil supplier, Sinopec to use up its bonded bunker exports quotas during the month of August.
So far, Sinopec accounted around 65% of China’s VLSFO production, hence the shortfall of the VLSFO is likely to channel some of its market shares to other competitive Asian ports like Hong Kong and Singapore.