Capesize rates seemed to set its sight for the $30,000 level in view of high iron ore prices that lifted shipping demand for moving iron ores.
The Capesize 5 time charter average hiked up further by $1,985 day-on-day to $28,657 on Wednesday, despite aggressive sell off at the Q3 contracts.
Due to Capesize rally, the Baltic Dry Index (BDI) rose to new height at 1,705 points, up 5.44% day-on-day and highest level since the start of the year.
Capesize takes a break for Dragon Boat Festival
Despite the bullish run, the Capesize market is expected to take a breather as many Chinese participants were off for the Dragon Boat Festival for the Jun 25-27 period.
In the Pacific market, there were moderate demand with only one mining major, Rio Tinto still active in seeking vessels to move iron ore for the key west Australia to China route.
Thus, the indicative freight rate on the key west coast Australia to Qingdao route were heard in the $9.80-$10/wmt range.
In the Atlantic market, there were a number of fixtures done, with Vale heard to fix around three vessels for the key Brazil to China route with indicative freight levels heard on the Brazil to China route were in the $21/wmt to $22/wmt range for end-July dates.
Bunker prices drop further on rising coronavirus concerns
VLSFO prices dropped $8.50/mt to $330/mt at the port of Singapore, amid market bearish sentiments from higher global coronavirus cases.
Brent Crude prices fell below the market confidence level of $40 per barrel, toward the $39 per barrel, while the WTI slipped further downward toward $37 per barrel level.
The downward movement was due to market concerns over rising crude stocks, as the American Petroleum Institute (API) estimated another build in crude oil inventories at 1.749 million barrels for the week ending June 19, against previous estimate of smaller inventory build of 299,000 barrels.