Market outlook for Capesize remained gloomy despite the recent uptick in FFA, which failed to drive the physical shipping market.
Capesize Pacific market had softened with the Pacific cargo list diversifying into iron ore and coal cargoes, while the Capesize 5 time charter average decreased down by $181 day-on-day to $2,532 on Thursday.
Going forward, the Capesize expects to face weak demand amid lengthy tonnage list as most market participants focused on March dates.
Lesser iron ore exports from Brazil
-Bad weather had hampered iron ore production in Brazil which prompted weak shipping demand as the Brazil-to-China route were over-tonnaged.
-Meanwhile, major miner, Vale had lowered its iron ore fines output guidance to 63-68 million tonnes for Q1 2020, down 5 million mt from previous estimate of 68-73 million mt.
-Similarly, the Brazilian miner also revised its iron pellet production forecast down to 44 million mt from 49 million tonnes.
-Thus, the lower iron ore output from the world’s top iron ore miner had affected freight market outlook over the medium to long term.
Singapore’s bunker demand rises on January
– VLSFO prices slid by $8 day-on-day to $518 per tonne at the port of Singapore, due to weak demand surrounding the coronavirus outbreak.
-Singapore’s bunker demand rose on January 2020 at 4.515 million mt, up 7.5% year-on-year, according to the country’s Maritime and Port Authority (MPA).
-The monthly bunker demand was on a two-years high since January 2018, and first-time total demand exceeded 4.5 million mt in the period.
-Among the monthly bunker volume, LSFO accounted 3.74 million mt or 82.9% of the total volume, up 19.7% month-on-month, since the start of the sulfur limit implementation in 2020 or IMO 2020.