Weekly Dry Bulk Report

Transcription

1 Week 49 -Shipbrokers and consultants since Weekly Dry Bulk Report Week 22 May 30th 2014 Capesize: BCI dropping 2.5 per cent from last week Panamax: Rates continuing to drift lower L&S INDEX OF DRY BULK STOCKS *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. CAPESIZE After firming last week, Capesize rates started falling again with the BCI-TCA ending at US$8 189/day, a 2.5 per cent drop from the end of last week. In the Pacific, Rio Tinto was seen booking two vessels for end - December, from Dampier to Qingdao at US$4.29/mt this Thursday. Vale was heard booking Noble tonnage for a trip from Teluk Rubiah to Qingdao mid-november at US$3.55/mt. The C5 declined by 16 per cent from the end of last week, despite congestion due to weather conditions in Northern China. PANAMAX Rates continued to drift even lower this week leading to more talk of potential lay-ups from owners. In the Pacific, coal- runs from Xiamen via Indonesia to India received US$4 500/day. From East Coast South America, rates to the Far East eased again, with vessels fixing at less than US$6 000/day plus US$ ballast bonus basis delivery passing Cape of Good Hope. In the Atlantic, Caravel was heard fixing a vessel for mid- December for a C3 route at US$9/mt. Vale was seen in the market seeking tonnage to move iron ore from Tubarao to Qingdao second half of December. Bid/Offer was seen at US$8.5/mt against US$9.30/mt There was some short period activity including reports of a dwt ship built 2000 at below US$5 000/day. Activity in South Africa was moderate this week, with trips from Saldanha Bay to Qingdao receiving low US$7/mt. 1

2 SUPRA/HANDYMAX Supramax rates remained steady throughout the week with the BCI-TCA ending at US$4 903/day. The market has been quiet, although we have seen some Eastern Mediterranean activity. been fixing at US$4 500 passing Canakkale via Black Sea to Egypt. The Supramax market has in general been very quiet, with a few orders coming up from the Continent to West med at around US$7 500/day. In the Pacific, a Supramax carrying grains from North Pacific to Thailand received around US$16 000/day for early January dates. In the Atlantic, a Supramax of dwt was on subjects at US$7 000/day for a trip from the Continent to the east Mediterranean. Handy vessels have The Baltic Exchange Dry Index Last Week This Week Trend Weekly Baltic Average BCI- TCA (US$/day) Softening Weekly Baltic Average BPI-TCA (US$/day) Softening Weekly Baltic Average BSI-TCA (US$/day) Softening Weekly Baltic Average BHI-TCA (US$/day) Softening Weekly BDI Average (US$/day) Softening FFA Last Week This Week Trend Calendar 16 BCI (US$/day) Softening Calendar 16 BPI (US$/day) Softening Calendar 16 BSI (US$/day) Softening 5TC+Q1 (Cape) (US$/day) Softening 5TC+Q2 (Cape) (US$/day) Softening 5TC+Q3 (Cape) (US$/day) Softening 5TC+Q4 (Cape) (US$/day) Softening Bunker Prices Last Week This Week Trend Rotterdam IFO 380 (US$/mt) Firming Rotterdam MGO (US$/mt) Firming Singapore IFO 380 (US$/mt) Firming Singapore MGO (US$/mt) Firming 2

3 Iron Ore Iron ore: Prices ending at US$40.3/mt, down 5.8 per cent from last week Iron ore prices ended at all time low this week, at US$40.3/mt, a 5.8 per cent decline from the end of last week. Steel demand in China is still weak and finished steel inventories at major Chinese cities have continued to fall, now leveling at around 9.1 million ton. This is the seventh week in a row of falling steel stocks, and the lowest level read in over six years. Iron ore inventories at Chinese ports are now around 86 mill mt, a 7.5 per cent increase from June. Despite falling steel production, the biggest suppliers of iron ore are continuing to expand production and reduce costs to maintain market share. Vale is planning to ship an extra 100 million mt to China within 2018; Rio Tinto and BHP are also planning to expand capacity. Fresh Australian capacity has also come online this week with Roy Hill shipping its first iron ore cargo from Port Hedland. At today s spot prices, Vale, Rio Tinto, BHP and FMG are the only miners selling with profit. Coal Newcastle Q12016 coal futures are now trading at US$52.30/mt, down from last week s US$52.70/mt. Coal fired power plants have been a much discussed subject during the climate talks in Paris this week. We have seen several coal companies filing for bankruptcies this year on the back of low prices, environmental regulations and other low-cost substitutes such as natural gas. Interest from investors has also been reduced significantly and large institutions such as Norway s sovereign wealth fund has eliminated coal from its portfolio, shifting over to renewable energy. Non-Fossil fuels is expected to count for 15 per cent of Chinas energy consumption by Grain s Wheat futures dropped to the lowest level in 5 ½ year this Wednesday, after USDA reported positive data on the condition of US winter wheat crops. Prices did however firm this Thursday, ending at US 448.2/bushel. The softening US dollar made both grain and soybean prices firm on the back of a softening dollar this Thursday. 3

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