November 8– November 14, 2014 Weekly market report.. Banchero Costa

Tuesday, 18 November 2014 17:23:41 (GMT+3)   |   Brescia
       

Capesize (Atlantic and Pacific)

The Capesize market failed to get the momentum that was largely expected and rates quickly declined in all basins. In Pacific the large availability of vessels open forced owners to adjust end November fixtures to about $8.5/mt by the end of the week, almost one dollar less if compared to the beginning of it. As a consequence Saldanha Bay/Qingdao route was under pressure and some owners wanted to fix their vessels at about $16/mt, but charterers were reluctant because of the market trend. The fronthaul rates decreased too, although Vale was pretty active booking 5/6 ships basis early Dec laycan. Rates were agreed at $22.50/mt with some pressure on ppt positions for which rumours reported rates at $21.50/mt done. In Atlantic, despite the presence of several cargoes, the increasing number of vessels available led rates to $24,5/25,000/d range for TA RV basis delivery mid-Nov. Almost absent the activity for fronthaul from North Atlantic, although a surprising rate at $46,000/d was agreed for a EC Canada to F East trip.

Panamax (Atlantic and Pacific)

It has been a negative week for the Panamax market especially in Atlantic: not many fresh enquiries and a growing list of vessels particularly in Med. MEG/F East business is still suffering Supramax competition; in the time charter market some fixtures were reported around $15,000/d+$500,000 bb and just above $40,000/d on voyage basis. TA RV fixtures were just a few and done mainly on voyage basis; time charter rates are still around $11,000/d (even less for 2/3 legs). Not much activity from S Am: at the beginning of the week a fancy Kamsarmax was reported booked at over $15,000/d+$500,000 bb for a trip to China. Pacific market was still slow, especially for tonnage open ppt in N China because of the lack of cargoes from NoPac end Nov loading, with rates decreasing below $10,000/d for a standard Panamax open N China/S Korea. A bit more support for F East rates came from Indonesian market, especially for cargoes with India discharge that paid around $12,500/13,000/d for a fancy Panamax, still some congestion at discharging port. The Australian market softened as well, but rates were still in the five digits for a Pacific RV. A nice Kamsarmax for short period was around $10,500/11,000/d; for a longer duration, 11/13 months, close to $9,000/d.

Handy (Far East/Pacific)

Good rates for Supramax coal stems from Indonesia to India showed improved demand for the trade and generally brought some positive influence to spot business in the area. A 56,800 dwt delivering close to the loading port was fixed at $12,000/d via Indonesia to India and, on the same trade, a very similar unit was fixed at $10,500/d basis dely Spore. A 56,000 dwt was booked basis dely NoPac for a trip back to F East at $9,000/d + $300,000 bb. A 53,000 dwt got a better $8,000/d basis dely S China for a trip via Indonesia to Thailand and $10,000/d was fixed for a 51,000 dwt delivering Spore for a trip via Australia to F East. Smaller Handysize showed to be in line with previous fixtures: a 33,600 dwt was booked at $8,150/d for 2/3 laden legs dely Spore, a smaller 28,400 was done at $7,250/d for 3 to 5 months trading dely S Korea and a 32,700 dwt fixed for Australia RV at $7,150/d dely Spore edely Japan.

Handy (North Europe/Mediterranean)

Firmer rates were reported agreed on Supramax tonnage for fronthaul business from Bsea: a fancy 58,000 dwt at the beginning of the week was done at $12,500/d basis dely Turkish BSea and a couple of days later another fancy 56,600 dwt got a better $13,100/d dely Marmara Sea. Much less impressive was the $4,500/d rate agreed for a 42,000 dwt for a trip out of the same area to Spanish Med, however voyage rates for the 30,000/10 ts usual grain stems from BSea to Med destinations were said to be increasing. The chartering interest from Cont was limited to a number of Handysize enquires and a Handymax booked for a nice $11,750/d rate for a quick trip with scraps via Cont to Morocco.

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

Supramax fixtures from this area appeared slightly contradictory although it's clear enough that business ex USG for larger units is going through a negative trend. Only $41/mt was the rate agreed on voyage basis for an Ultramax carrying a full load of grains to China and a 46,600 dwt got only $10,000/d for a trip to Med, although the vessel was 18 years old. From the same area Handysize enjoyed a better market: a fancy 38,000 dwt got a great $11,000/d for a trip with dirty cargo to Med and a 32,000 dwt was booked at $8,500/d to go the same destination. Quite good was the $12,500/d fixed on a 57,000 dwt delivering Caribbs to perform a trip via NCSAm to Brazil, and clearly better was the $18,500/d paid to a 55,000 dwt for a NCSAm/Chile business. A 52,000 dwt sized vessel was booked at an improved $12,000/d+$200,000 bb for a trip from ECSAm to F East.

Handy (Indian Ocean/South Africa)

A 50,000 dwt agreed $8,000/d from MEG to EC India and the 55,400 dwt got $6,500/d basis dely Pakistan via MEG to EC India; this could represent a sign of improvement for this area, but both vessels will redeliver EC India where owners still experience difficulties in finding employment, even at rates close to $4000/d. Recently, in spite of the strong complications and restrictions, Supramax available WC India were evaluated by charterers around $5,000/d, only for trips with iron ore via Iran to China.

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


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