We believe the coming months will remain cloudy for the Capesize segment on account of frail demand fundamentals for iron ore and coal trades. As mentioned in the commodity section, demand is expected to lose its lustre in China, resulting in weak employment opportunities in the Capesize sector. In May, the improving iron ore exports from Brazil provided some impetus to the BCI, but failed to lift the index across the month. Owing to volatility in the charter market, the average BCI declined by 22% compared with April. The market remained more volatile in the Atlantic region because of subdued demand from Europe. Time charter rates also fell on account of the weakness in commodity trade.
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