The capesize bulker segment fell for the second straight day on Wednesday, continuing a pullback from a three-day rally, as the panamax market kept improving. The Capesize 5TC spot rate average across five key routes has slipped 22.3% over two sessions to hit $5,442 per day on Wednesday, after a three-day rise of 180%. “Capesize rates remain under pressure after a brief rise seen last week and at the start of this week,” Jefferies analyst Omar Nokta said in a note. “Rates overall are weak due to thinner iron ore volumes, brought on by a tough steel market backdrop.”

The entire dry bulk market is “very quiet these days”, John Kartsonas, founder of asset manager Breakwave Advisors, which runs a dry-bulk exchange-traded funds platform. He noted that the panamax segment is “rallying quite hard” due to strong coal demand and high coal prices. The Panamax 5TC has risen 29.6% since 31 August to $14,196 per day on Wednesday.

Pan Ocean Shipping fixed Efnav’s 82,410-dwt Captain George (built 2014) to ship grain from the North American west coast to Asia at $16,500 per day after getting loaded on 12 September. Element hired Ariston Navigation’s 81,922-dwt Atrotos Heracles (built 2014) to send grain on the same route at $14,000 per day, Loading is set for 3 and 4 September. “But for capesizes, unfortunately there is low demand for iron ore transportation at the moment, and thus not a lot of movement to report,” he told TradeWinds. “As we head into the end of the month, my expectation is for better breath in terms of cargo flow which should help rates recover a bit.”

Rio Tinto hired two unnamed capesizes on Wednesday to ship 170,000 tonnes of iron ore from Dampier, Australia, to Qingdao at $7.80 per tonne and $7.90 per tonne. Loadings will take place from 22 to 25 September. The Australian mining giant hired an unnamed capesize on Monday to ship the same commodity on the same route at $8.80 per tonne. Loading is set for 19 to 21 September.

Softer bunker prices helped to offset the lower spot rates for capesizes, as most voyages from Western Australia to Qingdao traded at around $7,000 per day, Baltic Exchange analysts said. “Some brokers saw more backhaul enquiries appear in the market including both short runs from South Africa and longer durations from east Australia to the Continent,” they said.

The analysts also remarked that the east coast of South America exports of grain to Europe have boosted panamax spot rates.