Capesize paper market slipped on slow physical market as the Pacific market started to lose support with little shipping demand.
Thus, the Capesize 5 time charter average dropped by $252 to $5,697 on Monday, as most trade participants prefer to wait for the return of the Chinese participants after the Ching Ming festival holidays on Tuesday.
Anyway, this is a short week, with Good Friday and Easter holidays coming later at the week, which is likely to mute the major shipping markets for European countries and Singapore that observe the holiday.
Pacific market is dull with low shipping demand, despite miner majors like Rio Tinto and FMG seeking vessels for late April laycans.
More prospects for the Atlantic market
Trade participants were counting on better weather in Brazil, which might result in more cargo volumes for shipments.
Despite the rainy season and the closing of dams for safety regulation, Brazil’s Vale showed little signs of reducing their annual target of iron ore production and sales volume of 340 million-355 million mt for 2020.
However, the Atlantic market was rather muted at the start of the week on thin cargo list. Besides, most shipowners still prefer to send their ships to west Australia trips, rather than sending them to Brazil for the moment.
Bunker prices draw support from oil rally
VLSFO prices continued to raise higher supported by crude oil rally as it went up by $12 to $277/mt at the port of Singapore.
Brent crude oil price had hiked up toward $34 per barrel level, while WTI crude also rose toward the $27 per barrel mark, as G20 are set Friday to discuss on oil production cut.
The high bunker prices seemed not to be affected by the lockdown of Singapore till early May, while the rising bunker prices also failed to lift support freight rates.