The Capesize paper market continued its downward slide as Asian holidays prepared to get into full swing.
As such, the Capesize 5 time charter average went down by $300 to $7,812 after a quiet session on Wednesday, with minimal market activity.
Japan has entered its Golden Week holidays, South Korea will soon follow, and China breaks for the long week May Labor Day holidays ahead.
Thus, physical shipping demand had softened in both Pacific and Atlantic basins with limited fresh cargoes.
A need for Indian demand and long VLOC list
With lengthy holidays in sight, there was little shipping demand which prompt some trade source to claim the need for Indian demand to improve the freight market.
India is still under lockdown till early May, and the country might extend their lockdown further to contain the coronavirus pandemic.
According to trade source, there was still huge shipping supply in the market with a long VLOC fleet list hanging over the spot market.
The only bright market spot may reserve for the Brazilian market as more trade participants emerged out of Brazil due to improvement of monsoon season, especially for shipments for end-May laycans.
Oil prices to recover till late 2021
VLSFO bunker prices rose by $11 to $220/mt in the port of Singapore, following crude oil price volatility at the overall bearish market outlook.
According to Morgan Stanley, global oil demand is not expected to return to pre-virus levels of 2019 till Q4 2021.
Thus, Morgan Stanley predicted that WTI Crude prices will stabilize in 2021 at levels around $40 per barrel, and Brent Crude prices at around $45 per barrel. bunkerCapesizeMorgan StanleyVLOCVLSFO