Baltic Dry Index (BDI) inched up by 2.99% to 1,929 readings on Thursday, on better Capesize market with the return of Chinese participants from holidays.
By Tuesday, the Chinese trade participants had returned from the week-long Golden Week holidays and their return brought more shipping activities this week.
The Pacific and Atlantic basin soon picked up as the week progressed with Capesize rate firming with the time charter average gained by $1,049 on-day to $26,647 on Thursday.
No stoppages by Asian holidays
The comeback by Capesize rates were undeterred by other Asian holidays that occurred during the week, with South Korean and Taiwanese public holidays fell on Wednesday and Thursday respectively.
The good Capesize paper market coincided with the uptick in iron ore and steel market, of which the steel mills adopt restocking mode after a week-long holiday.
Moreover, the fourth quarter is typical a strong period for Capesize market driven by iron ore shipments coming from Brazil.
Moving forward, the iron ore demand is expected to firm up further due to the lower steel inventory which dropped by 275,000 mt, while steel production remained high with an increase in output by 630,700 mt on week.
Bigger ships remain the main focus
With an improved Capesize, the Panamax paper market benefited as well with better supports as the time charter rose by $380 on-day to $15,220 on Thursday, up $767 from Monday’s rate of $14,453.
The smaller vessels also saw a good run in the week, as the smaller ships were playing catch-up with the big ship rally for most of the week.
By Thursday, the Supramax time charter average was pushed up by $69 on-day to $13,536, and up $110 from Monday’s rate of $13,426. In the meantime, Handysize time charter average dropped slightly by $20 on-day to $9,559 on Thursday, down $52 from Monday’s rate of $9,611.