Weekly Dry Bulk Report

Transcription

1 23 -Shipbrokers and consultants since ly Dry Bulk Report 22 May 3th 214 HIGHLIGHTS Capesize: Market remained flat Panamax: Pacific generally flat, increased activity from ECSA L&S INDEX OF DRY BULK STOCKS Index 214 Index 215 Basket of stocks for L&S Index includes: Golden Ocean Group Ltd., Western Bulk ASA, Scorpio Bulker s Inc., Paragon Shipping Inc., Baltic Trading Ltd., Diana Shipping Inc., DryShips Inc., Safe Bulkers Inc., and Star Bulk Carriers Corp. CAPESIZE The Pacific has remained flat throughout the week, jumping between US$5.1 to US$5.15/ mt, dates being looked at now by charterers are into the second half of June. We do not see any signs of radical changes in rates, even with Port Hedland reporting another record month in May. Saldanha Bay/ Qingado has been the major mover this week. Unfortunately for owners the movement has been down from about US$8/ mt at the start of the week to US$7.65/mt towards the week PANAMAX end. Anglo is currently trying to fix at US$7.5/mt for end June eta. Front haul rates have fallen throughout the week, whilst there are cargo, the bid ask spread is too wide to see any Rates in the Pacific were generally flat, coal from Indonesia to India continued to feature with a vessel of 75 dwt built 28 fixing at US$5 /day plus a ballast bonus of US$6. A vessel built 1999 of 73 6 dwt was taken from Vietnam via Indonesia to India at US$4 15/day. Another vessel of 77 dwt built 29 was reported fixing from North China via the North Pacific to Singapore/Japan region at around US$5 25/day to cover a petcoke stem. There was some short period activity including a vessel of 82 2 dwt built 213 for 4 to 7 months delivery Philippines at US$6 25/day. For longer period, a vessel of 82 2 dwt built 21 was fixed from South Korea for 1 to 14 months at US$7 45/day. Increased activity from East Coast South America, with a number of charterers needing June loaders, pushed rates in the South Atlantic higher. A vessel of 81 3 dwt built 29 secured US$8 /day plus a fixing. Last done was reported fixed at US$1.8/mt. Charterers look to be covered for June slots. Capesize Timecharter Average (TCA). 5 Yr High 5 Yr Low 5 Yr Avg 215 ytd FFAs as of today ballast bonus of US$24 from passing Good Hope via East Coast South America to the Far East. A ship of 75 6 dwt built 25 was taken on a similar basis at US$7 5/day plus a ballast bonus of US$2. The North Atlantic was far less active with a post Panamax of 95 dwt built 27 fixing at US$9 1/day for a trip from the US Gulf to the Continent. Panamax Timecharter Average (TCA) 5 year High 5 year Low 5 year average 215 Ytd FFAs as of today 1

2 Handy/Supra: Slightly more activity compared to recent weeks SUPRAMAX/HANDY This week saw a little more movement compared to recent weeks of flat rates. The Pacific market showed a bit of activity with rates picking up. Indonesia/ India coal runs were seeing Supramaxes getting around US$8 /day basis Singapore for full India redelivery. Indonesian coal voyages to South East Asia and China saw rates at around US$5 /day and US$6 /day, respectively. The North Pacific also showed some improvement with ships getting US$8 /day + US$2 or more in ballast bonus. The period market also saw some activity, with smaller Supramaxes reported to be done in the low US$7 /day, whilst larger sizes were done at around US$8 /day for short period. The Handy market remained flat on the week at around US$4 /day. The Atlantic market was steady on the week; East Coast South America saw more cargoes, but little improvement on rates from Shipbrokers and consultants since last week due to the large availability of tonnage. Front haul rates were still holding in the US$1 /day + US$1-15 in ballast bonus, trips to the Mediterranean/Continent was showing around US$1 /day. The US Gulf market also remained steady with rates at same level as previous week. Supramax Timecharter Average (TCA) 5 year High 5 year Low 5 year average 215 ytd The Baltic Exchange Dry Index Last This Trend ly Baltic Average BCI- TCA () Softening ly Baltic Average BPI-TCA () Firming ly Baltic Average BSI-TCA () Firming ly Baltic Average BHI-TCA () Firming ly BDI Average () Firming FFA Last This Trend Calendar 16 BCI () Softening Calendar 16 BPI () Firming Calendar 16 BSI () Firming 5TC+Q1 (Cape) () Firming 5TC+Q2 (Cape) () Firming 5TC+Q3 (Cape) () Firming 5TC+Q4 (Cape) () Firming Bunker Prices Last This Trend Rotterdam IFO 38 (US$/mt) Firming Rotterdam MGO (US$/mt) Firming Singapore IFO 38 (US$/mt) Firming Singapore MGO (US$/mt) Softening 2

3 Iron Ore Iron Ore: Prices reached US$63.5/mt this Thursday Iron ore prices reached the highest level since February, ending at US$63.5/mt this Thursday, after inventories at Chinese ports continued to fall for the seventh straight week. We also see a tightening in the domestic iron ore market in China, as production has started to decline. Many small scale private producers have continued to reduce output or close down, as competition from low cost miner s overseas persist. These factors are likely to put an upward pressure on prices and are expected to boost demand from Australia and Brazil in the coming months. Coal Coal: Major suppliers are reducing production China s appetite for met coal fell more than 4 per cent in April from a year earlier, to 3.75 million tons, and the price has declined 23 per cent this year to around US$86/mt. At current spot prices more than half of the coal produced is being sold at a loss. Major suppliers such as Glencore and Teck Resources are reducing production, blaming the chronic global oversupply of coal. Peabody energy also says they will cut production by about 1.5 million tons a year, to lower costs and improve productivity. BHP, the world s number one producer is also under pressure, with shareholders demanding greater returns. Grains Ukraine wheat export for the marketing year July-June ended at 1.56 mill mt, up 13.5 per cent y-o-y, according to the ministry of agriculture. Corn exports for the same period ended at million mt, down 14.3 per cent from a year earlier. Total grain exports for the marketing year ended at million mt, up 1 per cent. 3

4 BCI FFA Cal 16 5 TC Cal 15 5 TC Cal 15 4 TC BCI-TCA ytd BPI FFA Cal 16 Cal BPI-TCA ytd BSI FFA Cal16 Cal BSI-TCA ytd BHI-TCA ytd 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) Disclaimer: The information contained within this report has been collected from a number of market sources and is given in good faith without guarantee, for information purposes only. Lorentzen & Stemoco and its affiliates, directors and employees are not liable or responsible for any consequences whatsoever occurring from errors or inaccuracy of the information contained within this report. 5