October 15– October 21, 2012 Weekly market report.. Banchero Costa

Tuesday, 23 October 2012 10:34:12 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

Another positive week for the Capesize market. In both basins rates went up and remained supported till the end of the week. In Pacific good volumes and a high number of fixtures reported: West Australia/China settled at $10/MT. In Atlantic trip to FarEast from Brazil was fixed at around $23/MT and at that level there were many more takers willing to repeat because the buoyant market that was expected for the coming week. Period activity saw renewed interest for short durations with long optional period: 4/8 months delivery prompt in Far East was reported at $13,500 daily. Positive signals from Capesize market again last week. In both side of the oceans, rates were going up remaining supported till the end of the week. In Pacific It was noted a good volumes of fixtures: West Australia/China route settled at 10usd. In Atlantic trip to East from Brazil was about 23usd and there were takers still evaluating tonnage in view of an expected buoyant market next week. Period activity saw a renewed interest for short duration with good optional period; 4/8 months delivery prompt in Far East was reported at 13,500.

Panamax (Atlantic and Pacific)

The activity started slow as everyone was looking at the market direction before moving, then freight rates, very slowly, started sliding down. For a TransAtlantic trip the levels were again around mid $6,000/d with a few fresh cargoes appearing. From USG for a trip back rates softened as well with some charterers talking low $15,000/d + $500,000 ballast bonus. In FarEast the market eased, but spot candidates for Indonesia round were an exception. A spot LME unit in S. China was still valued around $7/7,500 daily level but by the end of the week those numbers were not there anymore. Tonnage in North China was talked around $6/7,000 per day for NoPac round business. Short period rates also dropped with fixtures reported in the $7,500/d level for 4/8 months.

Handy (Far East/Pacific)

Supramax stems ex North Pacific did not materialize and with Australian exports still very quiet the heart of Supramax spot activity remained Indonesia. Coal to East Coast India remained at previous levels with some improvement towards the end of the week. This slightly positive trend was also reflected for Thailand and China destinations and in particular for Nickel Ore cargoes. Backhaul business to USG was fixed again at very low rates for the first 65 days and then at a large premium applicable. Also new long period business was reported. A deal was concluded at around $9,500/d for the first 12 months (around $500 more than the 3/5 months period), and around 10,250/d for the second optional period. A small amount of Handysize single trips were fixed showing rates in line with the previous week's level.

Handy (North Europe/Mediterranean)

There was not much action around these waters. From Northern Europe the activity was concentrated on cargoes to East Med at levels almost unchanged compared with the previous week. Reported deals concluded from S. Europe showed only a couple of Handysize fixing trip from Greece to West Africa and from Black Sea to East Med. Especially the second fixture, considering vessel is not taken much away from her original position, is not a bad deal for owners. While Supramax indexes for business loading ex Europe have decreased, smaller tonnage was rumored to get better deals, especially out of the Black Sea for owners able to trade through the Gulf of Aden.

Handy (USA/N.Atlantic/Lakes/S.America)

A firmer Panamax market from USG allowed shipowners to avoid fixing FarEastern destinations. Charterers were forced to switch their stem sizes to load on Supramax. This generated an increased regular trade on the Spore-Jpn routes with daily rates increasing from $16,100 to $18,500. Transatlantic trips still managed to fix at last done levels. From South America the market was different with Supramax rates decreasing on all trades including WCSA redeliveries. A fancy unit was fixed at only $11,000/d for a trip with grains via Sudan with redelivery Port Said. This rate would have been easily achieved from USG for a straight trip with coal to Turkish Med. To the contrary smaller Handies enjoyed better rates from South America than from USG and USAtl.

Handy (Indian Ocean/South Africa)

A larger number of Supramax fixtures showed that rates slightly improved for the trades within the Persian Gulf/Indian Ocean ranges. However the fundamentals to support this trend from Persian Gulf to FarEast and from India to FarEast seemed to be missing. The sole fixture reported from East Africa to FarEast showed a little more money agreed from this area as well, but fresh enquiries are lacking.

Banchero Costa and Co Spa
E-Posta: research@bancosta.it
Internet: www.bancosta.it 


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