Capesize paper market rebound from losses with more ships being fixed in the Atlantic market.
As such, Capesize 5 time charter average rose by $387 to $6,003 on Wednesday, with fresh buyers in the market, while the Pacific paper market held steady.
However, there seemed to be a standoff between owners and charterers in the physical market of Pacific and Atlantic basins.
Some Capesize shipowners stated that the ballasting routes are supporting the Capesize freight market, as the spot vessels in the Pacific can be ballasted for the second-half May laycans of Brazilian iron ore cargoes.
China’s iron ore demand remained the main driver for the Capesize market with Rio Tinto and FMG seeking vessels to move iron ore from west Australia to Qingdao.
More talks on the Atlantic
The Atlantic market witnessed fixtures on main iron ore shipping routes, while there were more talks for further shipments.
Brazil’s Vale heard to arrange shipment for May 1-10 laycans for moving iron ore to China done at the high $11s-$12/wmt range for the May window.
However, some trade sources stated that the trans-Atlantic trade routes were still sluggish amid market uncertainty on the coronavirus pandemic.
Bunker prices slip amid OPEC, Russia meeting
Bunker prices reversed from the oil rally with the VLSFO fell by $8.50 to $265.50/mt at the port of Singapore.
Due to meeting between OPEC and Russia, the Brent crude oil price had spiked toward $34 per barrel, while the WTI crude rose toward the $26 per barrel mark.
It was heard that the meeting may result to a cut of 10 million barrel per day (bpd), which supported the uptick in crude oil prices. Although, some participants doubted that the output cut is enough to offset the loss of oil demand affected by coronavirus pandemic.