Weekly Dry Bulk Report

Transcription

1 Week 36 -Shipbrokers and consultants since Weekly Dry Bulk Report Week 22 May 3th 214 HIGHLIGHTS Capesize: Generally lower rates this week Supramax/Handymax: Continued improved market for both segments L&S INDEX OF DRY BULK STOCKS* CAPESIZE PANAMAX SUPRAMAX/HANDY The pace slowed significantly this week, especially in the east where many geared up for a holiday weekend. Rates were generally lower with the benchmark West Australia/ China rate slipping from US$9 to around US$8.. On time charter, a 17 dwt ship secured around US$17 /day for a North Pacific round voyage. From Tubarao, tonnage to China was reported fixed at about US$23.4 and to Rotterdam at US$9.6. Regardless of smaller volumes, front haul trips are performing fairly better than the West Australia/ China route. The US Gulf was prominent with grain activity to the Far East. Panamax tonnage for delivery US Gulf September/ October for trips to Singapore- Japan range secured around the low-mid US$1,/day range plus around US$2/, ballast bonus. Owners are now hopeful of obtaining Far East delivery for US Gulf loading after reports of a Kamsarmax fixing at US$9,/day basis delivery Chang Jiang Koo. In the east, with several vessels ballasting towards North Pacific and the US Gulf, rates firmed with reports of a 76 dwt vessel securing US$8,/day for a North Pacific round basis delivery Japan. Rates for tonnage loading Indonesia also improved with reports of an eco Kamsarmax obtaining close to mid US$9,/day level basis South China delivery. The Supra/Handy market continued to improve last week, although the improvements were slowed on most front haul routes due to the holidays in the Far East to start this week. Again the biggest gains were from the US Gulf where Supramax rates were above US$2,/day for front haul trips. In the Pacific, rates were still on the rise but again with the amount of tonnage still available around India and SE Asia range, rates only moved up marginally by the week end. With more North Pacific cargoes available it will hopefully help to thin out tonnage, and further support freight rates , 1, 8, 6, Capesize Timecharter Average (TCA) Week in 214 4, 2, Yr Low Yr High Yr Avg 214 Ytd 1

2 Iron Ore Iron Ore prices at all time low since October 29 The larger mining companies are keeping up iron ore production. Iron Ore prices have been below US$1 a ton for 1 weeks now, dropping 37 per cent since December. On Friday prices dipped to US$ 8.24/t, the lowest price since October 29. While the larger mines are still comfortable, the sharp fall in prices became too much to handle for the Australian mining company Western Desert. Macquarie Bank rejected to support their short term funding proposals, and the mining company was forced into receivership under the administration of KordaMentha. Other small miners such as Atlas Iron Ltd, Gindalbie Metals Ltd and Grange Resources are also believed to operate at their marginal cost, and will struggle under a further price slide. The low price impact has also been exacerbated by the per cent rise in Australian dollar against the US dollar. Iron Ore Prices are likely to continue under pressure. Coal European coal prices with delivery this November saw a rise Thursday. After fights in Ukraine and several damaged mines, there are expectations of increased demand from Ukraine. November cargoes for delivery in Amsterdam, Rotterdam and Antwerp were traded at US$76./t on the globalcoal trading platform, up US$.3 from Wednesday s settlement. It was reported Wednesday that Ukraine ordered 1 million ton thermal coal from South Africa, delivery before year end. Prices in Australia, the coal benchmark for Asia/Pacific, saw prices down US$. to US$66/t for October deliveries from Newcastle. Grain Russia has proposed grain export ban for 214/21 Corn, wheat and soybean prices fell to their lowest levels this week driven by expectations for a plentiful global harvest. As a result of record crops in both the US, Brazil and Europe, World Grain Council is projecting the highest grain stockpiles in nearly 3 years. Russias Agriculture Ministry has proposed to restrict grain exports in the 214/21 season as a possible way of balancing the domestic market. 2

3 Rates by Routes C3 weekly rates- Capesize Tubarao to Qingdao US$/mt ytd P3A_3 Japan- South Korea Transpacific round voyage ytd S1A Antwerp- Skaw trip to Singapore-Japan HS4 daily rates - Handysize Gulf trip via US Gulf or North Coast South America to Skaw-Passero ytd ytd Timecharter Average US$/week Panamax Timecharter Average (TCA) year Low year High 214 ytd year average US$/week Handymax Timecharter Average (TCA) year low year high 214 ytd year average 3

4 US$/Mt Forward vs Spot prices for C3 and C Week C3+2Q FFA C3 spot C+2Q FFA C spot The Baltic Exchange Dry Index Last Week This Week Trend Weekly Baltic Average C (US$/mt) Softening Weekly Baltic Average C3 (US$/mt) Softening Weekly Baltic Average H4 () 8,8 8,611 Firming Weekly Baltic Average P3A IV (US$/mt) Firming Weekly BDI Average Firming FFA Last Week This Week Trend Capesize (C3+2Q) (US$/mt) Firming Panamax (P1EA+2Q) () 9,46 8,338 Softening Supramax (TC_S+2Q) () 1,2 1,4 Softening Bunker Prices Last Week This Week Trend Rotterdam IFO 38 (US$/mt) 6 66 Firming Rotterdam MGO (US$/mt) Softening Singapore IFO 38 (US$/mt) Softening Singapore MGO (US$/mt) Softening *Basket of stocks for L&S Index on page 1 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. 4

5 Office Oslo Address Lorentzen & Stemoco AS Munkedamsveien 4, 2 Oslo P.O. Box 229 Vika, 12 Oslo Norway Athens Lorentzen & Stemoco (Athens) Ltd Leof. Karamanli 2 Voula Athens, Greece Singapore Lorentzen & Stemoco Singapore Pte Ltd. 8 Eu Tong Sen Street, #21-98 Office 1 The Central 9818 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)