Weekly Dry Bulk Report

Transcription

1 49 -Shipbrokers and consultants since ly Dry Bulk Report 22 May 3th HIGHLIGHTS Capesize: BCI down 31% w-o-w Panamax: Slightly firming BPI L&S INDEX OF DRY BULK STOCKS* in 214 CAPESIZE West Australia has not been active enough to stop the slide in rates, and of the miners only Rio Tinto was in the market on Monday looking for December estimated time of arrival. There were a couple of Korean charterers seeking tonnage for mid-december dates bidding US$7.45/mt. Oldendorff was looking to cover a Newcastlemax cargo from Saldanha Bay to Qingdao December. Rates were still falling throughout the week with C December dates being traded at US$ /mt. For the East Coast Australia to PANAMAX Coal cargoes from Indonesia and Australia to China are still struggling to complete on the trading side. Owners looking for short rounds are relying on cargoes to Malaysia/Taiwan or the Philippines. Indonesia/ Taiwan is currently paying US$5/ mt for mid- December dates. There is still cargo to India being fixed from East Kalimantan/ Dahei currently bidding low US$9/mt for mid-december. The rates were still softening throughout the week. Vessels opening in the Singapore- Malaysia region mid-week Zhoushan route the level was around US$ for December dates. South African and Brazil iron ore export were very quiet at the start of the week. With Vale indicating that they have a full program for the remainder of 214, front haul 12, 1, 8, 6, 4, 2, has not seen the fresh market cargoes that we need. CSE has taken one vessel for Tubarao/ Taiwan at US$17/mt and are currently working another vessel below this. Capesize Timecharter Average (TCA) 5 Yr Low 5 Yr High 5 Yr Avg 214 Ytd were offering US$9 /day for Indonesia/ South China and US$95/day for Australia/ South China. India direction can still command a premium, the Union Voyage fixed dropping outward pilot Kusan for East Coast Australia to East coast India at US$1. However, once discharged you have limited options especially for West Coast India redelivery. Rates in the Atlantic for early tonnage remained strong, but the volume of fresh business seems to have slowed. A 72 dwt vessel open in Aughinish recurred US$119/day for a round voyage via United States East Coast, redelivery Cape Passero. Panamax Timecharter Average (TCA) 5 year Low 5 year High 214 ytd 5 year average *Basket of stocks for L&S Index includes: Golden Ocean Group Ltd., Western Bulk ASA, Scorpio Bulkers Inc., Paragon Shipping Inc., Baltic Trading Ltd., Diana Shipping Inc., DryShips Inc., Safe Bulkers Inc., and Star Bulk Carriers Corp. 1

2 Supramax/Handy: Steady market SUPRAMAX/HANDY The Handy and Supra market remained steady this week. We saw a stronger start on the back of the previous week, and it was leveling off towards the end. In the Pacific, Indonesia to India coal runs are maintaining around the US$12 level with basis Singapore. A larger Supramax reported to have achieved US$13 /day for the same run. North Pacific trips also remained steady at the US$1 /day levels. The period market has tailed off slightly as many charterers are looking to hold back on taking in cargo this week. In the Atlantic, the East Coast South America market has finally started to edge upwards. Some Ultramaxes are now fixing in the US$/day with over US$3 ballast bonus. The US Gulf also remained steady with front haul rates tailing off somewhat towards the end of the week. Trans Atlantic rates remained strong Supramax Timecharter Average (TCA) 5 year Low 5 year High 214 ytd 5 year average The Baltic Exchange Dry Index Last This Trend ly Baltic Average BCI () 18,63 12,64 Softening ly Baltic Average BPI () 8,658 8,871 Firming ly Baltic Average BSI () 1,196 1,298 Firming ly Baltic Average BHI () 6,974 7,2 Firming ly BDI Average Softening FFA Last This Trend Calendar 15 BCI () 14,516 13,672 Softening Calendar 15 BPI () 8,697 8,93 Firming Calendar 15 BSI () 9,63 8,61 Softening Bunker Prices Last This Trend Rotterdam IFO 38 (US$/mt) Softening Rotterdam MGO (US$/mt) Softening Singapore IFO 38 (US$/mt) Softening Singapore MGO (US$/mt) Softening 2

3 BCI FFA Cal 15 5 TC Cal 15 4 TC BCI-TCA BPI FFA Cal BPI-TCA ytd BSI FFA 18 BSI-TCA Cal ytd BHI-TCA ytd 3

4 Iron Ore Iron ore: Vale cutting iron ore production by 2.3% Brazilian Vale are cutting their iron ore production estimate by 2.3 per cent to 34 million mt for 215. The company is at the moment going through expansions to allow them a 459 million mt production output by 219, but the complexity of various projects and licensing approvals seems to pose a challenge. Iron ore miner Atlas have reduced about 1 per cent of their work force this week, equal to 8 jobs as it has challenges keeping afloat due to the falling iron ore prices. Fortescue metals group, one of the biggest after BHP and Rio Tinto also announced it will cut capital spending by US$65 million this year. Prices are still under pressure, and are averaging under US$7/mt this week. Coal A cut in met coal production in North America will contribute to balance the global supply and cause a rebound in prices to about US$128/ mt FOB Australia next year, according to analysts at UBS. Cuts in North American mining have caused production to decline approximately 25 million/mt per year since 212, this equals 8 per cent of the global seaborne trade. This could lead to a lift in Australia s met coal exports. To achieve a balance in the seaborne market there are needed a further 5-1 million/mt reduction in mining in 215 according to the UBS report. Grain Grain: Russia expected to limit grain export for 214/215 season With expectations that Russia will limit their grain exports in 215, US wheat futures held near a five-month high Monday this week. Russia announced last Friday that they are introducing new regulations to make sure the country has enough grain for domestic use. Lower wheat exports from Russia could boost demand for U.S supplies. The US will produce an all-time high billion bushels this year, according to USDA. 4

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