Weekly Dry Bulk Report

Transcription

1 44 ly Dry Bulk Report 22 May 3th 214 HIGHLIGHTS Capesize: Firming rates throughout the week in both basins Panamax: Another week of firming rates in all sectors CAPESIZE During an active Monday, both the paper market and physical market kicked on from last weeks positive gains. In the Pacific there was plenty of activity on the West Australia/ Qingdao route with firming rates throughout the week. BHP were particularly active on Wednesday, taking as many as six vessels for West Australia/ Qingdao, in addition to fixing a 165 +/-1% Haypoint/ Qingdao for end November dates. The level reported was US$11.9/mt. Saldanha Bay/Qingdao was done at US$19/mt by Pacific Bulk on an EPS vessel. Front haul rates shot up from last weeks closing Index, Swiss- Marine were reported to have taken Sunrise (LDC relet) for a 5-1 November Tubarao/ Qingdao trip at US$22.7. Rates saw another massive jump on Tuesday up to a high of US$26/ 12, 1, 8, 6, 4, 2, mt for 1-2 November loading in Tubarao. Rates were maintained on Wednesday for November cancelling, however charterers bid for December onwards show a sharp fall with first half of December US$22.5. and second half at US$21.5. Capesize Timecharter Average (TCA) Yr Low 5 Yr High 5 Yr Avg 214 Ytd L&S INDEX OF DRY BULK STOCKS* in 214 PANAMAX Another week of firming rates in all sectors. In the Atlantic a 83 dwt vessel was taken for coal trans-atlantic round at US$1 75/day from Cape Passero. Short Baltic to Continent rates moved up with 83 dwt vessel open in Luleaa being paid US$ Further south, a 74 dwt vessel was taken from East Coast South America to the Far East at US$13 75/day + a ballast bonus of US$375. In the Pacific, coal shipments remained the driving force. A 74 dwt ship was fixed at US$14 /day from Singapore via Indonesia to India. Some Panamax Timecharter Average (TCA) short period activity included a vessel of 81 dwt from Muscat at US$1 5/day. The sentiment remains bullish with a likely further firming of rates 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 Handy/Supra: The Baltic indices were slightly down on last week SUPRAMAX/HANDY On the Supra/Handy size we saw the market this week a little flat to the start. Towards mid week activity picked up on some routes, however the indices were slightly down on the week. In the Pacific, North Pacific round trips on the Supra sizes were starting to go from an APS market to a DOP market with quite a few stems coming open. Indonesia/India coal runs remained pretty much unchanged. In the Atlantic rates were relatively unchanged on last week. Inter Mediterranean and front haul routes out of the Black Sea were showing a slight upward trend. In the US Gulf front haul remained unchanged on the Supramax Timecharter Average (TCA) week, but we are seeing more November stems coming up. As we head into November a pick up is expected to come. East Coast South America remained flat on the week year Low 5 year High 214 ytd 5 year average The Baltic Exchange Dry Index Last This Trend ly Baltic Average BCI () 12,657 22,483 Firming ly Baltic Average BPI () 8,393 9,476 Firming ly Baltic Average BSI () 9,517 9,37 Softening ly Baltic Average BHI () 7,254 7,4 Softening ly BDI Average Firming FFA Last This Trend Calendar 15 BCI () 17,17 17,423 Firming Calendar 15 BPI () 9,22 9,427 Firming Calendar 15 BSI () 9,739 9,759 Firming 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) Firming 2

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

4 Iron Ore As a result of temporary shutdowns of Chinese steel mills to curb pollution during the APC (Asia Pacific Economic Cooperation) meeting in Beijing next month, iron ore futures fell for the second session this Tuesday. At the end of the latest session, benchmark iron ore for immediate delivery to China dropped 1 per cent from US$ 78.8 to The steel production cuts are expected to last for two to three weeks. This will reduce the demand for iron ore on a short time basis and lower of the expected seasonal restocking. Coal Coal: Ukrainian coal mining down 49 per cent in September Ukraine's coal extraction volumes fell by 13.2 per cent January to September. In September alone, Ukrainian coal mining was down 49 per cent. Due to fighting between the government and pro Russian separatists half of the countries coal mines have been shut down. Since coal is Ukraine's key energy source they are facing difficulties with coal supply this year. They now need to import coal from other destinations, and received the first thermal coal cargo from South Africa last week. The Ministry of Environment and urban affairs in Turkey has received an application to build a 1.96 GW plant burning imported coal on the southern shore of the Sea of Marmara. A public consultation meeting will be held on November 18. The plant will consist of two 98 MW units which will burn 5.6 million mt/year when operating at full capacity. A deep water discharge facility will be built, capable of receiving bulk carriers og up to dwt. Suggested coal import sources are Russia, South America, South Africa and Australia. Grain Grain: US wheat export up 49 per cent w- o- w The corn export licenses issued by the Government in Argentine have reached million mt since the beginning of the marketing year. This is an increase of 114 per cent y-oy. Speculations that dry and cold weather in Russia will damage the crop for harvesting next year caused wheat prices to rise for the fourth day running. December delivery wheat rose 1.2 per cent to US$ a bushel on the Chicago board. Corn for delivery in December rose 1.1 per cent to US$ a bushel. Wheat export from the US was up 49 per cent week on week, with the most important export destinations beeing Japan, Mexico and Brazil. Exports for the 13/14 marketing year totaled million mt, up 14 per cent from the previous year. 4

5 Office Oslo Address Lorentzen & Stemoco AS Munkedamsveien 45, 25 Oslo P.O. Box 229 Vika, 125 Oslo Norway Athens Lorentzen & Stemoco (Athens) Ltd Leof. Karamanli 25 Voula Athens, Greece Singapore Lorentzen & Stemoco Singapore Pte Ltd. 8 Eu Tong Sen Street, #21-98 Office 1 The Central Singapore Shanghai Lorentzen & Stemoco Shanghai Representative Office Room 271, Shanghai Central Plaza 381 Huai Hai Zhong Road, 22 Shanghai China New York Lorentzen & Stemoco AS (New York City) 8 East 41st St 8th Floor New York, NY 117 United States of America +1(212)