Bulker and tanker rates saw little movement this past week as August draws to a close in a period typically more focused on vacations than fixtures.
The Baltic Dry Index gained seven points to 1,488 on Friday from a week ago, while the Baltic Dirty Tanker Index slid 11 points to 472.
"Chinese steel mills continue to run hard with production up 5.3% year-on-year in mid-August, China Iron & Steel Association reported," Clarksons Platou Securities said in its daily market report.
"According to Platts, industry sources said steel output will be driven by strong infrastructure construction in the coming months with reports of construction projects in southern China now 'in full swing'," the broker said.
The weighted time charter equivalent (TCE) average for capesizes improved slightly to $18,394 per day on Friday from $17,916 per day a week earlier, according to Baltic Exchange assessments.
The TCE rate for benchmark Brazil-China route moved up to $19,182 per day from $17,127 per day last Friday.
Handysizes gained moderately as TCE rates stepped up to $10,258 per day from $9,833 per day.
Those lazy, hazy days
Tanker rates saw modest change over the week, apart from a spike in the product tankers space amid some very bad weather in the US.
The Baltic Clean Tanker Index improved to 502 points from 423 points last Friday as two US Gulf hurricanes boosted US-Europe demand but fell 10 points to 492 on Friday.
"After the extra bookings of gasoline from Europe to the US earlier this week lifted rates, freight levels are now coming down again as Hurricane Laura did less damage to energy infrastructure than feared and refiners are planning to resume operations," Clarksons wrote.
TCE rates for VLCCs slipped to $6,326 per day from $8,948 per day over the week, but mostly due to a 22.7% dip since Wednesday.
"Looking at a typical seasonality chart, we note that August and early September is seasonally a soft period," Clarksons said.
"This is due to upcoming refinery maintenance in October, which reduces buying interest ahead of the maintenance, combined with lower exports from Saudi Arabia as more crude is used in power plants to generate electricity for air cooling in the peak summer month.
"We are therefore likely at a seasonal bottom in terms of activity," the broker said.
