Week 46 -Shipbrokers and consultants since 1919- Weekly Dry Bulk Report Week 22 May 30th 2014 Capesize: Market continues to fall Panamax: BPI-TCA falling 9 per cent from last Friday CAPESIZE The Capesize market continued to fall this week with the BCI- 5TC ending at US$6 280/day, a 16 per cent drop from the end of last week. The C5 route is now fixing at US$4.45/mt, levels not seen since mid- April this year. low despite low vessel prices. Last done on a five year old vessel is reported at US$28.5 mill, values not seen since November 2002, reflecting the low earnings in the market. Newbuilding (resale) prices are expected to fall under the US$40 million mark in the coming weeks. In the Atlantic two vessels were reported fixed at US$8.50/mt from Brazil to China, levels not seen since December 2008. The market is still oversupplied of tonnage, putting a downward pressure on rates. Sentiment is negative amongst owners, and buying interest is L&S INDEX OF DRY BULK STOCKS* PANAMAX Dire was the word most used this week to describe the Panamax market as rates continued to fall. The BPI-TCA saw a 9 per cent fall from the end of last week ending at US$4 269/day. In the Pacific, charterers were was fixing at US$6.15/mt. The pace in the Atlantic was very slow with a number of vessels ballasting into the area facing ever decreasing rates. A vessel of 82 000 dwt was rumored fixed from East Coast South America to the East at US$9 000/day plus a ballast bonus of US$90 000. Period rates were also markedly lower with a vessel of 76 000 dwt built 2009 from north China for 4/8 months at US$5650/ day. able to pick and choose which vessels to fix, basis delivery APS rates were equivalent to little *Basket of stocks for L&S Index includes: Golden Ocean Group Ltd., Western Bulk ASA, Scorpio Bulker s Inc., Paragon Shipping Inc., Diana Shipping Inc., DryShips Inc., Safe Bulkers Inc., and Star Bulk Carriers Corp. more than US$2 000/day basis DOP. Coal trips from Hay Point in East Coast Australia to East Coast of India were receiving US$7.65/mt. Coal trips from East Coast Australia to Qingdao 1
SUPRA/HANDYMAX The Supramax market dropped further this week, ending at US$5 570/day, a 6.7 per cent decrease from the end of last week. the Continent at US$4 500/day with pig iron. From the US Gulf, a Supramax was fixed to Spain at around US$7 500/day, according to the Baltic exchange. In the Pacific, an Ultramax vessel built 2015 was fixed delivery DOP Philippines to India at US$ 6000/day. Another Ultramax vessel was seen fixed at US$6 500/day DOP from West Coast India to China with bauxite. In the Atlantic a Handysize at 28 000 dwt was fixed from Rio to The Baltic Exchange Dry Index Last Week This Week Trend Weekly Baltic Average BCI- TCA (US$/day) 8232 6673 Softening Weekly Baltic Average BPI-TCA (US$/day) 5461 5077 Softening Weekly Baltic Average BSI-TCA (US$/day) 6683 6231 Softening Weekly Baltic Average BHI-TCA (US$/day) 5154 4874 Softening Weekly BDI Average (US$/day) 737 663 Softening FFA Last Week This Week Trend Calendar 16 BCI (US$/day) 9789 9016 Softening Calendar 16 BPI (US$/day) 6495 6150 Softening Calendar 16 BSI (US$/day) 6755 6407 Softening 5TC+Q1 (Cape) (US$/day) 6846 6502 Softening 5TC+Q2 (Cape) (US$/day) 7644 7122 Softening 5TC+Q3 (Cape) (US$/day) 10792 9700 Softening 5TC+Q4 (Cape) (US$/day) 13877 12740 Softening Bunker Prices Last Week This Week Trend Rotterdam IFO 380 (US$/mt) 219 223 Firming Rotterdam MGO (US$/mt) 410 423 Firming Singapore IFO 380 (US$/mt) 236 243 Firming Singapore MGO (US$/mt) 441 454 Firming 2
Iron Ore Iron ore: Prices ending at US$47.80/mt, flat from last week Iron ore prices ended at US$47.80/mt this week and Chinese interest is still lacking. We saw imports fall by 12.3 per cent m-o-m; imports for the first ten months of the year are now 774.5 million tons, a 0.5 per cent drop compared to last year. Chinese steel mills are still struggling, and production dropped by 3.1 per cent y-o-y in October, ending at 66.12 million tons, while production for January to October ended at 675 million tons, a 2.2 per cent decline compared to the same period last year. Steel consumption has also dropped significantly by 5.7 per cent for the first ten months of the year. Prices are reflecting the lack of demand, with the Shanghai rebar delivery May currently trading at US$276/t, levels not seen since 2009. With slimming order books, working capital under pressure and a tighter credit market, mills are not able to keep steel stockpiles at the historical high levels. Coal Newcastle thermal coal prices have now dropped to US$50/ton for the first time. The weak Australian currency is in addition to falling production costs and a drop in demand from China, contributing to put prices under pressure. Chinese coal imports dropped 21 per cent m-o-m in October, while imports for the 10 first months of the year is down 30 per cent compared to last year. Grain s Wheat futures dropped to a three-week low on Tuesday as the government released a larger than expected wheat harvest forecast. Global corn and soybean production is according to the latest World Agricultural Supply and Demand Estimates also expected to be higher than previously expected. This contributed to put pressure on both corn and soybean prices. 3
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