Capesize extends losses over sell off pressure

Capesize paper market slid from sell off pressure as losses extended across both the Pacific and Atlantic basins. Thus, the Capesize 5 time charter average dropped down to $4,858 on Thursday, down $443 day-on-day, following the plunge in physical market. There were ample of tonnage in the market that dragged down freight rates, as shipping demand were softened for the end-May loading days.   Weak demand out of Brazil Brazil’s mining major, Vale had paused its May loading dates and were active in seeking ships for mid-June dates. Thus, the shipowners had to wait till June before fixing vessels after Vale emerged in the market after a long absence. Meanwhile, it was heard that Vale had fixed a ship at high-$8.40s/wmt on the Tubarao to Qingdao route for mid-June laycan, down around 60 cents from previous fixtures.   Lower rates in Pacific Following the weakness in Atlantic market, the Pacific also saw lower freight rates for its key route of west coast Australia to Qingdao. The indicative rates for this route stayed in the range of $3.95-$4/mt in mid-week, down around 10 cents from previous fixtures. Trade participants were hoping that the easing of Malaysia’s lockdown may push more iron ore cargoes out of Vale-owned Teluk Rubiah terminal to improve market sentiments.   VLSFO dips amid market optimism VLSFO bunker prices dipped by $3/mt day-on-day to $257/mt at the port of Singapore, amid the volatile oil market. Brent crude prices had stabilized in the $30 per barrel level, while WTI crude prices had closed in toward the $25 per barrel from market optimism. So far, crude oil prices had doubled in the span of a week as the WTI jumped from $12 to around $24 per barrel, on the optimism of re-opening economies across the world. However, some trade sources raised alarm bells on the optimism as they believed the re-opening of economies to be gradual processes amid the overhung of oil supplies.