Dry Bulk Market: Capesize Market Comes Under Pressure
The Capesize market was under pressure across all routes most of time this week. The 5TC and BCI showed a minimal sign of improvement mid-week, but closed on a much weaker note on Friday. Despite the presence of all the miners in the market for the first time since early October, the west Australia to Qingdao voyage route (C5) came off from the peak on Wednesday at $16.732 to $14.264 on Friday, whilst the relevant transpacific route closed at $41,429 per day. In the West, Vale fixtures were said to be building with rumours reported on C3 Brazil to Qingdao run at $37.75 on end November loading dates, reflecting a value of $42,823 on the China-Brazil round trip later in the week. Both backhaul and fronthaul trips moved sharply lower towards the weekend, recording $29,000 and $$83,100 respectively.
A week of positive gains in the Panamax market, with the Atlantic bouncing back with some eye-catching gains whilst the Asian basin proving to be more passive by comparison. The Atlantic proved to be well supported in most origins with sturdy demand throughout. The Black Sea provided perhaps the biggest headlines throughout the week, $42,000 reported paid on an 82,000 dwt delivery India for a trip via Black sea redelivery Far east one of the highlights. Elsewhere an 83,000 dwt was said to have secured $38,000 for a trans-Atlantic round trip from a North Spain delivery. Asia was again dominated by solid demand ex-NoPac with firming rates throughout, with rumours of mid $40,000’s circulating in the market. Indonesian coal demand was steady by contrast with rates fairly constant throughout the week, whilst Australia was dominated by a host of tender cargoes. Period reports included an 80,000 dwt delivery India agreeing a rate of $33,000 for 11/13 months.
A strong week for key areas in the Atlantic such as the US Gulf, which saw limited fresh tonnage availability. In contrast, as the week closed, limited fresh enquiry appeared leading to more vessels being available and rates lowering in Asia. Period enquiry was seen, although some suggested a widening gap between owners’ and charterers’ expectations. A 61,000 open Makassar was fixed for 5 to 7 months trading at $42,000. In the Atlantic strong numbers from the US Gulf, a 61,000 dwt fixing delivery Veracruz via US Gulf redelivery Far East at $62,000. It was also rumoured that a 61,000 dwt was fixed from Brownsville via Mississippi redelivery West Coast Central America at around $70,000. At the start of the week in Asia a 63,000 dwt was fixed basis delivery Singapore via Indonesia redelivery China at $47,000. However as the week closed rates eased: a 63,000 dwt again open south east Asia fixing a trip via Indonesia redelivery China in the low $40,000s.
This week we have seen East Coast South America bring a halt to its recent negative trend, with positive movements including a 39,000 dwt open in Santos fixed via East Coast South America to the Continent with an intended cargo of steels at $40,000. The US Gulf region continues to firm with a 38,000 dwt fixing from Galveston to West Africa with a intended cargo of sulphur at $53,000 and a 38,000 dwt was fixed from Houston for 2 to 3 laden legs with redelivery Atlantic at $35,000. A 32,000 dwt open in the Baltic was fixed for a trip to the Eastern Mediterranean with an intended cargo of scrap in the high $30,000’s. A 39,000 dwt open in the Newport, UK was fixed for a trip via the Continent to the US Gulf at $39,000. A 38,000 dwt open in Valparaiso for early November dates has been fixed for a trip to the Continent at $33,000.
Source: The Baltic Exchange