Capesize market had a quiet opening at the start of the week with limited trading activity in both basins of Atlantic and Pacific markets.
The paper market did not break the muted market as the Capesize 5 time charter average dropped by $102 day-on-day to $2,172 on Monday.
Port congestion concerns in West Australia
-The iron ore loading ports were congested in West Australia, prompting market concerns over further depressed Pacific shipping demand and falling freight rates.
-Overall, the Pacific market has healthy cargoes volumes and mining majors like Rio Tinto and FMG were seeking vessels in the region.
-Going forward, some trade participants were hoping to catch the upturn of the healthy iron ore prices around $80-$90 per tonne and when China normalizes their steel output later.
Lacklustre Atlantic market
-Shipping activity remained low in Atlantic market due to lack of fluid Brazilian market.
-Heavy rains were blamed for the falling iron ore Brazilian shipments and that resulted low fleet utilization over the past two months.
Scrubber fitted ship to benefit from cheaper HSFO
– VLSFO prices rose by $13 to $441 per tonne at the port of Singapore, after days of declining prices over the past week.
-Ship-owners had prefer to use scrubber fitted ship for longer sea voyages and benefited from using the relatively cheaper HSFO than the more expensive IMO 2020-complaint fuel.
-The uptick in bunker prices reflected higher Brent crude prices at $52.75 per barrel as Russia suggested that it may participate in the latest OPEC output cut.