The Baltic Exchange provides an update on the Dry Bulk markets for Week 27. Information originally sourced from the Baltic Exchange.
Capesize
The Capesize market showed signs of stabilisation this week following a period of softness, with improvements in the Pacific basin and a more balanced Atlantic. In the Pacific, C5 rates gradually firmed, rising from US$6.90 early in the week to US$7.44 by week's end. All three major miners were active and fixing volumes increased, tightening the tonnage list toward the close. Operator-led demand, robust iron ore volumes in ex-West Australia, and a rise in coal cargoes underpinned sentiment. The Atlantic began slowly but gained momentum. On the Brazil to China (C3) route, early softness gave way to firmer fixtures later in the week, with a fixture reported at around US$19.50 for end July dates. However, a persistently long ballaster list continues to weigh on forward sentiment. The North Atlantic saw a modest uptick in transatlantic and fronthaul activity, although rates remained largely underpinned. Overall, the BCI 5TC lost US$2128 over the week, closing at US$15 382.
Panamax
The Panamax market returned mostly a flat week, with the exception being EC South America, which witnessed a steady rise from mid-week with solid levels of demand and firm fundamentals. The North Atlantic disappointed by comparison, while the transatlantic trips remained mixed with far-ranging rates concluded depending on delivery point. Like last week, the Continent delivery ships are not boding well compared to West Mediterranean positions. Fronthaul activity fared slightly better with steady grain and mineral demand emanating from the North Americas. Reports mid-week of an 82 000 dwt delivery Continent achieving US$21 250 for a trip via NC South America to China. In Asia, plentiful activity with steady, if not spectacular, demand from all major load origins. Rates, especially ex Australia, remained steady with talk of an 81 000 dwt delivery Japan agreeing US$11 500 for a trip via Australia redelivery Japan. Period activity was minimal, but the highlight did include rumours of an 82 000 dwt delivery China achieving around US$12 000 basis 1 year period.
Ultramax/Supramax
A rather positive week for the sector as demand increased in some key areas. In the Atlantic, the US Gulf saw stronger numbers being discussed with charterers bidding towards the mid US$20 000s for transatlantic runs to attract any interest from Ultramax owners. Better levels were also seen elsewhere, with a 56 000 dwt open Eregli heard fixed for a trip via Constanta redelivery Aqaba at US$14 500. It was fairly positive week in Asia as demand returned from both the south and further north for backhaul business. A 63 000 dwt was heard fixed delivery Tianjin for a trip to the Mediterranean, with steels at US$17 000 for the first 65 days and thereafter at 418 500. Further south, a 61 000 dwt was fixed delivery Hong Kong for a trip to Singapore at US$12 000. The Indian Ocean also saw green shots, with a 63 000 dwt fixing delivery South Africa for a trip to China at US$16,000 plus US$160 000 ballast bonus. Period activity remained, with a 63 000 dwt open Sitra fixing 5/7 months trading at US$15 000.
Handysize
It was generally a quiet week for the Handy sector. Activity continued to slow down across the Continent and the Mediterranean as many participants were away attending various shipping events. A 34 000 dwt was reported fixed from the West Mediterranean to the US Gulf at US$7000. From the US Gulf, the market maintained its soft tone, with a continued lack of fixing activity and a noticeable build-up in available tonnage. A 39 000 dwt open Wilmington was fixed for delivery SW Pass to Morocco at US$15 000. The South Atlantic remained relatively unchanged, with rates holding steady for now. A 38 000 dwt was fixed for delivery Amazon River to West Mediterranean at US$17 500. Meanwhile, the Asian market stayed largely stagnant. Fundamentals showed little movement and overall sentiment remained flat. A 41 000 dwt was fixed for delivery Richards Bay on 10 July for a trip via South Africa redelivery Pakistan with coal at US$22 500.
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