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WEEKLY MARKET REPORT
May 15th, 2009 / Week 20
FROM STRENGTH TO STRENGTH
The market pushed higher, significantly higher in the latter part of the week, with all indices enjoying sizeable double digit increases. Leading the way is the BCI with nearly 17.5% increase dragging the Baltic Index up over the psychological 2,500 mark adding 330 points nearly 15% for the week.
Although this week we did not see a big increase in purchase enquiries, in the dry market, we did witness increasing prices compared with the last concluded deals of similar tonnage. The best example being the sale of the 1997 Torm panamax bulkers (TORM MARTA / TORM BALTIC) which were sold en bloc for US$ 42.50 million (equivalent to US$ 21.25 million each) and these are comparable with the last done sale of the same dwt/age panamax ETOILE which was recently sold for region US$ 20.50 million.
VALE of Brazil are continuing their buying spree, this time purchasing two capers, namely the PENELOPE (150K/1997 Japan) for US$ 30 million and the larger/younger TAI SHAN 169K/1999 Korea) for US$ 38 million. As a comparison we would like to remind you January's sale of the GOLDEN WING (170k/1997 Korea) which was sold for US$ 27 million.
Chinese buyers continue to be active for any types of older tonnage but most importantly for 1990's built handymax and panamax bulkcarriers. This is a very active market segment with prices remaining firm as the various Chinese buyers wish to import these vessels into the Chinese flag for the domestic trade. Over the last 1-2 months or so the prices have been edging higher for tonnage less than 18 years old (the cut off age for importation into the Chinese flag) and this is a trend which we expect to be continued. One can only see the price achieved by Chinese buyers for the DARYA RANI (45k/1996 Japan) which we are reporting sold for a firm US$ 16.75 million and then compare it with that of the 1997 built EMERALD HALO and GLORIOUS HALO which were sold end of March for US$ 16.7 million, as well as that of DUBAI GUARDIAN (47k/1997 Japan) which was sold for US$ 17 million a couple of weeks ago.
From Japan we are seeing an accelerating pace of vessels for sale which was expected and mentioned in previous market reports. There is a plethora of Handysize vessels from Japan so it will be interesting to see how quickly and at what price levels these will be sold at. With this supply of tonnage theoretically the prices should be under downward pressure however, demand seems to be picking up and we expect the prices to remain firm in relation to the present freight market.
So, it is good news all around for the 2nd hand market and let us hope that this continues so that more money begins to float in the system.
On the demolition front China continues to increase its presence and with it prices have formed to 220/235 for bulkers and tankers respectively. India and Pakistan have at last stabilized and hovering around the 235/270 mark whilst Bangladesh is still practically out of the game. No big news then here however, we have noticed an interesting ray of light in the Bangladeshi market as the government has added a 15% duty tax on the import of finished steel products. This may mean anincrease of cheap finished steel products stemming from the recycling market and hence an increase demand for ship demolition. Let us see what happens although with the improved freight market we are sure that more and more dry bulk owners are being distracted from the demolition market.
Enjoy our report and have a nice weekend.
http://download.hellenicshippingnews.com/pdf/weberseas/WeberSeas%20Weekly%20Report%
WEEKLY MARKET REPORT
May 15th, 2009 / Week 20
FROM STRENGTH TO STRENGTH
The market pushed higher, significantly higher in the latter part of the week, with all indices enjoying sizeable double digit increases. Leading the way is the BCI with nearly 17.5% increase dragging the Baltic Index up over the psychological 2,500 mark adding 330 points nearly 15% for the week.
Although this week we did not see a big increase in purchase enquiries, in the dry market, we did witness increasing prices compared with the last concluded deals of similar tonnage. The best example being the sale of the 1997 Torm panamax bulkers (TORM MARTA / TORM BALTIC) which were sold en bloc for US$ 42.50 million (equivalent to US$ 21.25 million each) and these are comparable with the last done sale of the same dwt/age panamax ETOILE which was recently sold for region US$ 20.50 million.
VALE of Brazil are continuing their buying spree, this time purchasing two capers, namely the PENELOPE (150K/1997 Japan) for US$ 30 million and the larger/younger TAI SHAN 169K/1999 Korea) for US$ 38 million. As a comparison we would like to remind you January's sale of the GOLDEN WING (170k/1997 Korea) which was sold for US$ 27 million.
Chinese buyers continue to be active for any types of older tonnage but most importantly for 1990's built handymax and panamax bulkcarriers. This is a very active market segment with prices remaining firm as the various Chinese buyers wish to import these vessels into the Chinese flag for the domestic trade. Over the last 1-2 months or so the prices have been edging higher for tonnage less than 18 years old (the cut off age for importation into the Chinese flag) and this is a trend which we expect to be continued. One can only see the price achieved by Chinese buyers for the DARYA RANI (45k/1996 Japan) which we are reporting sold for a firm US$ 16.75 million and then compare it with that of the 1997 built EMERALD HALO and GLORIOUS HALO which were sold end of March for US$ 16.7 million, as well as that of DUBAI GUARDIAN (47k/1997 Japan) which was sold for US$ 17 million a couple of weeks ago.
From Japan we are seeing an accelerating pace of vessels for sale which was expected and mentioned in previous market reports. There is a plethora of Handysize vessels from Japan so it will be interesting to see how quickly and at what price levels these will be sold at. With this supply of tonnage theoretically the prices should be under downward pressure however, demand seems to be picking up and we expect the prices to remain firm in relation to the present freight market.
So, it is good news all around for the 2nd hand market and let us hope that this continues so that more money begins to float in the system.
On the demolition front China continues to increase its presence and with it prices have formed to 220/235 for bulkers and tankers respectively. India and Pakistan have at last stabilized and hovering around the 235/270 mark whilst Bangladesh is still practically out of the game. No big news then here however, we have noticed an interesting ray of light in the Bangladeshi market as the government has added a 15% duty tax on the import of finished steel products. This may mean anincrease of cheap finished steel products stemming from the recycling market and hence an increase demand for ship demolition. Let us see what happens although with the improved freight market we are sure that more and more dry bulk owners are being distracted from the demolition market.
Enjoy our report and have a nice weekend.
http://download.hellenicshippingnews.com/pdf/weberseas/WeberSeas%20Weekly%20Report%
16/5 2009 09:48 fcras 0
11267 - her et link der virker til - Weekly Market Report
http://download.hellenicshippingnews.com/pdf/weberseas/WeberSeas%20Weekly%20Report%20May%2014-09.pdf
