Friday, 31 July 2015 10:48

Market Report - July 31, 2015

372 Market

The long awaited pick-up in the iron ore market is continuing to fuel demand for Capesizes but there’s still a way to go before anybody is making “real money” beyond covering operating and finance costs in the bulk market. The wild card is how long Chinese re-stocking will continues for with Port Hedland, Australia (picture above), the world’s largest iron-ore export port alone shipping 38.4 million tons in June

With Capsizes slightly stronger and Panamaxes a little weaker, last week’s gains were maintained allowing the Baltic Dry Index to close yesterday on 1100 points compared to 1102 points last week and 1009 points the week before.

 

  Cape Size    

   Panamax        

   Supramax 

Index 

       2116

       1044

     892

Last week

       1924

       1161

     896

Spot time charter     

 $ 16,000/day     

 $ 8,300/day 

$  9,300/day 

One week ago

 $ 15,000/day

 $ 9,300/day 

$  9,400/day

Tankers: VLCC one year T/C rates have strengthened to around $55,000 per day thanks to continued healthy demand and perhaps helped by the nonsense going on in Nigeria. Interestingly, the current rates are double the average market rate for the past five years with prices for secondhand tankers also heading north with a five-year-old VLCC up 5% from $80m since June, a 10-year up 7% from $55m, and a 15-year old up 11% from $37m. On the other hand newbuild VLCC prices are struggling at a fairly static $95-96 million depending on specifications.

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