Thursday, 10 March 11
The dry bulk market jumped by 3.37% yesterday, with the industry’s benchmark, the Baltic Dry Index (BDI), moving up to 1,472 points, levels not seen in weeks. The recovery was led by the Capesize market, which burst forward by an impressive 6.52%, with the Baltic Capesize Index reaching 1,699 points, finally surpassing the relative earnings of the much smaller in size Supramax ship type (1,512 points). As for the Panamax segment, it still “rules” the dry bulk market with the highest earnings, with the Baltic Panamax Index rising yesterday by 2.29% to 2,095 points.
According to Fearnley’s latest weekly report, in the capesize market, “both actual and nominal levels rising throughout the week, assisted by improving paper values and ever-increasing bunker prices. Considering the market remains massively overtonnaged, however, this appears more of a "dead cat bouncing" situation than the start of a fundamental recovery. Atlantic stands out as the most active/promising area, with genuine end-users to a large extent making up spot demand. Average tc-levels are up some 65% to come in at around usd 8k - which at least makes it worthwile to sail instead of drifting. Period fixing is limited to a handful of key players - levels varying considerably from usd 10k done on 16,4000 dwt/blt 1996 delivery China prompt for 4-6 months, to 180kdwt/blt 2010 fixing 4-6 months at usd 15k also basis delivery china prompt - the latter interestingly almost on par with 12 months concluded on 177kdwt/blt 2004 delivering end march for major miners” said the shipbroker.
Regarding the Panamax market, it mentioned that “after a slow last week the Panamax market took a clear turn this week. Fresh grain cargoes out of ECSA appeared and owners starting to ballast their vsls from Pacific in the same direction. Typical rates to secure ECSA grain business around 19,000/Day. Moreover, a more active period market with operators booking short period tonnage to cover grain business at levels rising from mid 17 towards the 19,000 mark. Atlantic still fine balanced and Continent tight for prompt tonnage with TA rounds fixed at 16-18k. The Pacific spot market not as enthusiastic. However, owners able to secure levels around the healthy mid teens. Propelled by the fresh grain orders, more active short period market and a slightly positive forward curve, nervousness turned into a growing positive sentiment. As the cape market also show signs of a recovery owners are raising their levels for longer periods. Takers are still reluctant though” the report noted.
In a separate weekly analysis by Commodore Research & Consultancy, “Chinese iron ore fixtures have remained low due the near record amount of iron ore that is stockpiled at Chinese ports. 21 vessels were reportedly chartered to export iron ore to China last week, 1 less than the previous week. Chinese thermal coal fixtures have also remained low in recent weeks due to robust port stockpiles, but a greater than usual amount of coal fixtures did come to the market last week. Chinese steel production could come under a small amount of near-term pressure due to falling prices and the continued surge in domestic steel stockpiles. Market sentiment inside and outside of China remains firm. Similarly, Commodore mentioned that coastal shipping rates continue to rebound, with rates to haul grain along the Chinese coast now finding support (only rates to ship coal were previously finding support).
Rates to haul coal continue to find the most support; rates to haul iron ore remain flat. Coastal rates to ship coal from Qinhuangdao (located in northeastern China) to Shanghai have increased to about $6.71/ton, an increase of $1.06 (19%) from a week ago. Rates to haul coal from Qinhuangdao to Zhejiang province (located directly south of Shanghai) have increased to $6.87/ton, an increase of $0.92 (15%) from a week ago” said Commodore.
Thermal coal demand remains firm and the 6 vessels chartered to ship thermal coal to China last week were up slightly from the trailing four-week average. On average, 4 vessels were chartered to export thermal coal to China during the weeks ending February 4 to February 25. A large amount of coal remains stockpiled at Qinhuangdao and other major Chinese coal ports which continues to result in Chinese thermal fixture volumes remaining much lower than the robust fixture activity seen in late November through early December.
Source: Nikos Roussanoglou, Hellenic Shipping
Tags : Qinhuangdao port, thermal coal shipment,
According to Fearnley’s latest weekly report, in the capesize market, “both actual and nominal levels rising throughout the week, assisted by improving paper values and ever-increasing bunker prices. Considering the market remains massively overtonnaged, however, this appears more of a "dead cat bouncing" situation than the start of a fundamental recovery. Atlantic stands out as the most active/promising area, with genuine end-users to a large extent making up spot demand. Average tc-levels are up some 65% to come in at around usd 8k - which at least makes it worthwile to sail instead of drifting. Period fixing is limited to a handful of key players - levels varying considerably from usd 10k done on 16,4000 dwt/blt 1996 delivery China prompt for 4-6 months, to 180kdwt/blt 2010 fixing 4-6 months at usd 15k also basis delivery china prompt - the latter interestingly almost on par with 12 months concluded on 177kdwt/blt 2004 delivering end march for major miners” said the shipbroker.
Regarding the Panamax market, it mentioned that “after a slow last week the Panamax market took a clear turn this week. Fresh grain cargoes out of ECSA appeared and owners starting to ballast their vsls from Pacific in the same direction. Typical rates to secure ECSA grain business around 19,000/Day. Moreover, a more active period market with operators booking short period tonnage to cover grain business at levels rising from mid 17 towards the 19,000 mark. Atlantic still fine balanced and Continent tight for prompt tonnage with TA rounds fixed at 16-18k. The Pacific spot market not as enthusiastic. However, owners able to secure levels around the healthy mid teens. Propelled by the fresh grain orders, more active short period market and a slightly positive forward curve, nervousness turned into a growing positive sentiment. As the cape market also show signs of a recovery owners are raising their levels for longer periods. Takers are still reluctant though” the report noted.
In a separate weekly analysis by Commodore Research & Consultancy, “Chinese iron ore fixtures have remained low due the near record amount of iron ore that is stockpiled at Chinese ports. 21 vessels were reportedly chartered to export iron ore to China last week, 1 less than the previous week. Chinese thermal coal fixtures have also remained low in recent weeks due to robust port stockpiles, but a greater than usual amount of coal fixtures did come to the market last week. Chinese steel production could come under a small amount of near-term pressure due to falling prices and the continued surge in domestic steel stockpiles. Market sentiment inside and outside of China remains firm. Similarly, Commodore mentioned that coastal shipping rates continue to rebound, with rates to haul grain along the Chinese coast now finding support (only rates to ship coal were previously finding support).
Rates to haul coal continue to find the most support; rates to haul iron ore remain flat. Coastal rates to ship coal from Qinhuangdao (located in northeastern China) to Shanghai have increased to about $6.71/ton, an increase of $1.06 (19%) from a week ago. Rates to haul coal from Qinhuangdao to Zhejiang province (located directly south of Shanghai) have increased to $6.87/ton, an increase of $0.92 (15%) from a week ago” said Commodore.
Thermal coal demand remains firm and the 6 vessels chartered to ship thermal coal to China last week were up slightly from the trailing four-week average. On average, 4 vessels were chartered to export thermal coal to China during the weeks ending February 4 to February 25. A large amount of coal remains stockpiled at Qinhuangdao and other major Chinese coal ports which continues to result in Chinese thermal fixture volumes remaining much lower than the robust fixture activity seen in late November through early December.
Source: Nikos Roussanoglou, Hellenic Shipping
Tags : Qinhuangdao port, thermal coal shipment,
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