February 20– February 26, 2012 Weekly market report.. Banchero Costa

Tuesday, 28 February 2012 15:13:39 (GMT+3)   |  
       

Capesize (Atlantic and Pacific)

Finally the Capesize market started to move, probably influenced by higher bunker prices. In the Pacific round business from West Australia to China was rumored to have fixed up to $7.90 for dates beginning/middle of March. From South Africa charterers were willing to fix closed to $15 levels for middle of March while owners were keeping their expectations firm hoping that the positive trend will continue next week. More activity was reported out of Brazil during the second half of the week with major charterers taking vessels in the low/mid $20 and willing to repeat the same levels. The period enquires remained good with 5/7 months fixing in the low $13,000s.

Panamax (Atlantic and Pacific)

Last week the Atlantic market dropped due to the amount of spot vessels and ballasters coming from the East. Transatlantic business was rather limited and rates were talked at a few thousands. Fronthaul business slipped quickly and the ECSA rounds were done at $14,000+400kbb daily level or even lower. Charterers were interested in taking vessels from East and LMEs were done at $12,000 daily plus $150,000 to 200,000bb basis delivery passing Cape of Good Hope. The Pacific was still slow, but by the end of the week some positive signs were seen. Nopac business pushed the market up slightly with candidate in N. China talked at $8,000 daily level. Pacific orders however were still rather limited with many spot vessels ballasting to ECSA. The feeling on short period was pessimistic, but some charterers started to chase good vessels at the end of the week.

Handy (Far East/Pacific)

The market was more active due to the large amount of spot Supramax requirements ex Southeast Asia that brought additional improvements to rates. Indian Ocean destinations received premium rates because of the weaker market in that area. Some owners started believing that this larger flow of business, especially from Indonesia, can last forever. Rates for Far Eastern redeliveries remained low even for nickel ore and iron ore business in spite of the additional risks arising from the moisture contents. The Pacific and Australia rounds remained almost unchanged with some period interest going on at low $ 10,000 for short duration and high $11,000 for one month. There were few reported Handysize fixtures that however showed an acceptable market even for smaller sizes.

Handy (North Europe/Mediterranean)

Black Sea and Mediterranean waters kept being a very lousy spot for the owners. The lack of enquiry kept the rates down with an Handymax rumored at approximately $6,000 daily with delivery Canakkale to carry steels from Black Sea to Jordan and redelivery Port Said. Other owners preferred to ballast and try to fix minerals from NCSA to the East, which made the low money agreed to carry cement from South Spain to Nigeria more attractive, considering vessel will afterwards be better positioned for loading ex Latin America. Activity from the Continent was limited to East Med and West Africa bound trips, but showed considerably better rates compared to the South European market.

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

There was no major change in the market from Atlantic Americas, especially in the USG and NCSA loading areas where the Transatlantic Supramax and Handymax business kept getting fixed at low levels. It was easier for charterers to book East bound business on voyage basis. South America kept being the best Atlantic spot for owners, with Transatlantic trips booked at $2/3,000 more than what was achievable from the USG. There were still some premiums available for East bound directions. Smaller Handies were doing better earning the same rates as their larger relatives.

Handy (Indian Ocean/South Africa)

There were several enquiries to load minerals from the Middle East Gulf and a few also from India, but the sole fixture reported was for trips loading South Africa. Very low money was agreed for a modern Supramax fixed to the Continent and East bound trips were still showing unattractive levels. Comparatively, the Handysize booked to carry rice from India to West Africa was not such a bad repositioning deal, although owners will face the risk of a long duration.

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


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