Bulk report – Week 17
The Capesize market had a positive week overall with the BCI and 5TC route average at 2003 points and $16,609, closing at 2,136 and $17,713. The first half of the week remained positive amid strong support from the Pacific. The C5 West Australia to China trade continued to climb from last week, but lost ground from the high of $12.245 gradually to below $12 by the weekend. It was reported that in first quarter of 2022, China’s iron ore imports from Brazil were down a massive 24% year-on-year, which was still significantly higher than the volumes from Australia. Later in the week the market saw increased enquiry from Brazil, as well as west coast Africa. The C3 Brazil to Qingdao run settled at $25.457 on Friday, which was a decline of close to a dollar compared with Monday. The north Atlantic region was generally balanced, brokers said. The market will return on Tuesday after a long weekend in both the east and west.
Overall, the Panamax market returned a lacklustre week with momentum lacking. The Atlantic market contracted early on, then rebounded, as the week ended and bids in the north returned a little stronger. An 81,000-dwt delivery Continent fixed midweek a fronthaul trip via US Gulf redelivery China at $37,000, typifying the mean average rate for route P2A on the week. Asia, by contrast, had limited support on some of the longer round trips via NoPac and Australia route P3A lost $1,000 over the course of this week. Rates on the shorter Indonesian round trips softened, with talk of an overage 76,000-dwt giving delivery China rumoured to have agreed a rate in the region of $13/14,000 levels for an Indonesian coal round. Period news remained thin. An 81,000-dwt agreed a rate of $30,000 for five to seven months trading at the start of the week, although other activity was very limited.
A rather positional market over the last week. Whilst in the Atlantic healthy demand was seen from the US Gulf, other areas had a rather lacklustre feel. Asia also saw split sentiment as from the south little fresh enquiry appeared from Indonesia. Further north, with congestion still being seen in China, fresh tonnage position remained thin. Period enquiry was healthy, a 63,000-dwt open China fixing one year at $31,000 and in the Atlantic another 63,000-dwt open US Gulf fixing 24 months trading at $24,500. Strongest gains were seen from the US Gulf. A 63,000-dwt fixed from here for a trip to Sweden at around $60,000 and there was also healthy demand from North Asia. A 56,000-dwt fixed from China to the Mediterranean at $35,000. However, it was a mixed bag from the Indian Ocean. A 57,000-dwt open Chittagong fixed via EC India to China in the mid $17,000s during midweek and as the week closed a 63,900-dwt was heard fixed delivery Mumbai trip via Arabian Gulf redelivery Chittagong at $38,000.
With mainly positive sentiment in both basins, the BHSI made gains. This was largely due to the US Gulf which saw numbers increase day-on-day. A 38,000-dwt fixed from Houston to the Continent with an intended cargo of wood pellets at $38,000. And East Coast South also remained positive with a 38,000-dwt at Recalada rumoured to have fixed a trip to West Coast South America at $53,000. Another unnamed large handy fixed at around $44,000 for a trip from Recalada to North Brazil. A 37,000-dwt fixed from the UK to East Coast Mexico with an intended cargo of fertiliser at $24,000 for the first 40 days and $27,000 for the balance. In South East Asia, a 37,000-dwt was fixed via North Australia to China in the high $20,000s. Period activity saw a 32,000-dwt open in China fixing three to five months trading at $29,500 and a 37,000-dwt in Brazil fixing three to five months at $31,500 both worldwide redelivery.