Dry bulk market all set to reach 3,500 points in the coming days
Tuesday, 07 September 2010
The dry bulk market is looking well after the crash it experienced during the whole of June and up until the middle of July.
According to John Pachoulis, the President of the Hellenic Shipbrokers Association, the so called “China factor” was the main mobilizing force of the market.
In an interview with Hellenic Shipping News Worldwide, Mr. Pachoulis estimates that the market could very well reach 3,500 points during the following weeks, with the possibility of reaching 4,000 points by the end of the year, should Chinese steel mills keep their buying spree.
- more here:
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=119348&Itemid=93
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BULK - Stærke Rater usd/dagen + Ballastbonus fra USG
I følge Platou, Oslo 07.09.2010:
Kamsarmax IRON KALYPSO
82,224 BLT 06 USG/SPORE-JPN 13-15/9.2010 USD 37,500 DAILY + USD 750000 BONUS CARGILL
Panamax CATALINA
74,432 BLT 05 USG/SPORE-JPN 21-25/9.2010 USD 37,000 DIALY + USD 725000 BONUS ARCHER DANIELS MIDLAND
- more here:
http://reports.platou.com/FixtureReport/Pages/BulkFixtures.aspx
8/9 2010 07:35 fcras 0
33007 Baltic index rises, ore outlook lifts sentiment
Wednesday, 08 September 2010
The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose on Tuesday as hopes of firmer iron ore enquiry in the coming months boosted sentiment The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, rose 1.28 percent, or 37 points, to 2,918 points in a seventh straight session of gains.
"The market last week and this week to some extent is a reflection of improved sentiment as Q4 approaches," said Derek Langston, a director with SSY Consultancy and Research.
Brokers said expectation of higher activity in the fourth quarter was also adding a more positive tone to the freight derivatives, or FFA, market.
The capesize market has seen volatile activity in recent weeks. A rally in August was driven by Chinese iron ore imports from Australia and Brazil on capesizes after Karnataka, India's second-largest ore producing state, banned exports from 10 of its ports in July.
"We have a situation where steel prices are rising and the prospect very soon of lower contract prices for both iron ore and coking coal," Langston said.
"So this combination has improved the outlook for steelmakers and improves sentiment across the freight market."
The Baltic's main index has been erratic this year, as it was in 2009, because of swings in Chinese demand for iron ore, the primary ingredient of steel.
The Baltic's capesize index .BACI rose 1.14 percent on Tuesday, with average capesize earnings rising to $39,503. Capesizes typically haul 150,000-tonne cargoes such as iron ore and coal.
"With capesize fixtures for October-load expected to commence in the coming days, we expect increased demand and higher freight rates associated with the new (Q4 iron ore) price," Omar Nokta, head of research at Dahlman Rose & Co, said in a note.
The Baltic's panamax index .BPNI rose 2.64 percent, with average daily earnings rising to $26,604. The supramax index .BASI rose 0.55 percent.
"The panamax sector has been a beneficiary of positive sentiment in the FFA sector, as actual physical activity has not been particularly robust, in our opinion," Cantor Fitzgerald said.
Brokers said expectations of firmer U.S. grains export activity, helped by a Russian grain export ban, was providing some support to the smaller ships.
More broadly, industry concerns about the pace of global recovery may hit shipping, given that about 90 percent of the world's traded goods by volume are transported by sea.
Economic recovery is accelerating in the European Union and growth this year will be higher than initially forecast, European Commission President Jose Manuel Barroso said on Tuesday.
Analysts said freight rates also were expected to be dampened this year due to the pace at which new ships are set to enter the market in 2010 and 2011, despite indications of some vessel cancellations and delays.
"We believe the dry bulk shipping market should remain volatile ... given the improving outlook for global industrial activity but significant shipyard deliveries," Jefferies & Company said.
Source: Reuters
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=119549&Itemid=79
Wednesday, 08 September 2010
The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, rose on Tuesday as hopes of firmer iron ore enquiry in the coming months boosted sentiment The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, rose 1.28 percent, or 37 points, to 2,918 points in a seventh straight session of gains.
"The market last week and this week to some extent is a reflection of improved sentiment as Q4 approaches," said Derek Langston, a director with SSY Consultancy and Research.
Brokers said expectation of higher activity in the fourth quarter was also adding a more positive tone to the freight derivatives, or FFA, market.
The capesize market has seen volatile activity in recent weeks. A rally in August was driven by Chinese iron ore imports from Australia and Brazil on capesizes after Karnataka, India's second-largest ore producing state, banned exports from 10 of its ports in July.
"We have a situation where steel prices are rising and the prospect very soon of lower contract prices for both iron ore and coking coal," Langston said.
"So this combination has improved the outlook for steelmakers and improves sentiment across the freight market."
The Baltic's main index has been erratic this year, as it was in 2009, because of swings in Chinese demand for iron ore, the primary ingredient of steel.
The Baltic's capesize index .BACI rose 1.14 percent on Tuesday, with average capesize earnings rising to $39,503. Capesizes typically haul 150,000-tonne cargoes such as iron ore and coal.
"With capesize fixtures for October-load expected to commence in the coming days, we expect increased demand and higher freight rates associated with the new (Q4 iron ore) price," Omar Nokta, head of research at Dahlman Rose & Co, said in a note.
The Baltic's panamax index .BPNI rose 2.64 percent, with average daily earnings rising to $26,604. The supramax index .BASI rose 0.55 percent.
"The panamax sector has been a beneficiary of positive sentiment in the FFA sector, as actual physical activity has not been particularly robust, in our opinion," Cantor Fitzgerald said.
Brokers said expectations of firmer U.S. grains export activity, helped by a Russian grain export ban, was providing some support to the smaller ships.
More broadly, industry concerns about the pace of global recovery may hit shipping, given that about 90 percent of the world's traded goods by volume are transported by sea.
Economic recovery is accelerating in the European Union and growth this year will be higher than initially forecast, European Commission President Jose Manuel Barroso said on Tuesday.
Analysts said freight rates also were expected to be dampened this year due to the pace at which new ships are set to enter the market in 2010 and 2011, despite indications of some vessel cancellations and delays.
"We believe the dry bulk shipping market should remain volatile ... given the improving outlook for global industrial activity but significant shipyard deliveries," Jefferies & Company said.
Source: Reuters
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=119549&Itemid=79
