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Thursday, 25 March 10
THE INDIAN MARKET IS STILL FIRM - FEARNLEYS AS


Handy
A  sluggish  start  to  the  week  in  the  Atlantic  with  little  fresh  business  and  a declining  BSI.  Tonnage  is  accumulating  in  USG  which  is  driving  that  market down  and  market  softening  across  all  segments.  Cont  to  E.Med  in  the  mid  30 ´s  now  down  at  least  3-4k  from  last  week.  A  35000  dwt  vessel  was rumoured  fixed  around  25000  per  day  for  2/3  ll  in  the  Atlantic  by  European chrs.  Outlook:  Softer  conditions  in  the  Atlantic  as  Easter  holidays approaching.  The  FEAST  market  softened  a  bit  during  the  last  week.  For Pacific  rounds  Supras  trading  in  the  mid/high  20´s  and  for  Indo/India  coal trips  Supras  have  seen  around  low  20´s. 

The  period  market  for  Supras  seems quiet,  not  many  fixtures  reported,  for  short  period  owners  still  try  to  achieve high  20´s. 

The  Indian  market  is  still  firm  and  for  iron  ore  trips  from  WCI  to China  Supras  trading  in  the  low/mid  40´s  and  Supras  open  ECI  can  achieve very  high  20´s  for  Richards  Bay  rounds.

Panamax
Affected  by  sluggish  Cape  market  still  kept  alive  by  Grain  long  hauls, period  market  and  a  relatively  strong  FFA  the  Panamax  market  has  lost some  of  its  momentum  and  gradually  turned  down.  TAs  have  kept  fairly stable  at  38-39000  level,  while  the  fronthauls  did  some  small  adjustments; down  approx  USD  2000  to  around  USD  48000. 

Pac  rounds  fell  from  around USD  33000  at  its  peak  to  USD  31000  region.  Backhauls  fixed  USD  20000 throughout  the  week.

Capesize
Spot  levels  for  the  big  ships  keep  drifting  as  tonnage  supply  -  particularly  in Atlantic  -  is  not  matched  by  iron  ore  and  coal  demand.  The  main  driver, iron  ore  trades,  may  well  have  been  halted  due  to  tactics  connected  to ongoing  contract  price  negotiations.  The  W.Australia/China  conference  trade stands  at  usd  10  pmt,  down  some  18%  in  terms  of  daily  earnings  during  the week. 

Similarly,  the  fronthaul  Brazil/China  trade  stands  at  some  usd  23.50 pmt,  down  some  20%  in  terms  of  daily  earnings.  Limited  period  activity, with  the  healthy  exception  of  2009-built  180000  dwt  done  for  7-10  months at  usd  36k  basis  delivery  in  d/c  PASSERO  end  March.  A  "bank"  deal  has also  been  concluded,  on  2000-built  171000  dwt  purchased  at  usd  42.5m  and done  for  3  years  at  usd  27500  basis  delivery  wwide  end  2010.
Source: FearnreSEARCH



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