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Thursday, 01 July 10
PANAMAX MARKETS CONTINUE TO DROP IN ALL BASINS - FEARNLEYS


Handy
Atlantic rates continue to slide with little activity. Supras open in USG get low 30´s to Med and mid 40´s to FEast. Hmax/Supra ex Bsea get low 20´s and 30´s for fronthaul. There are positive signs of much more fresh enquiries for the next weeks mostly ex  NCSA/USG/CONT. The immediate outlook is negative, but it is worth to note the BSI stabilized yesterday. We therefore choose to remain optimistic as more enquiries emerges and the World Cup is over. The FEast market was quiet over week with a lack of direction as the BDI continues down, - 40% over the past month. Charterers able to wait, do so in hope of lower rates - although there was a brief sign of a rally that disappeared with negative news coming out of China. IndoChina trips are in the high teen´s - a tick  more  for  trips  to  ECI,  the  Indian market  remains  quiet  with  a  lack  of  iron  ore  activity  to  FEast.  NoPac  rounds are  not  preferred,  even  at  a premium, as owners prefer shorter duration to see where the market goes.

Panamax
Markets continue to drop in all basins, but Atlantic is more affected than Pacific this week. This supported by more spot/prompt positions from owners, most  charterers believe trend will continue down. Some charterers are reluctant to fix and even holding cargoes off market in order to achive lower freights. On the positive side it´s worth to mention the high export of coal from N.America to China. Fronthaul fixed at levels around 33k  while T/A rounds at level 23-24k. Pacific r/v see levels at very low 20´ and backhaul at 14-15k. The few positives; obviously charterers hold cargoes to get market further down, so when do they have to fix? also operators might take ships for medium periods at these levels.

Capesize
There were more signs of a healthier market and more support towards end of last week.  However, in spite of a relatively good fixing activity the market remains relatively flat. The Australia/PRC round was done at close to USD 9 pmt, against USD 8.50 end of the period. For the Tubarao/Qingdao round Vale has been picking ships at USD 22 pmt, arnd five in total of which all giving Eta Tubarao first half July. Although Vale seem to be covered for now, their activity  certainly have been important in obtaining more steady supply and demand balance. There are more players looking for short period tonnage, however with  levels at high USD 20k´s most owners don´t find it very interesting. The main concern of the market is still the depressed steel demand in China, however it seems there has been reached a floor for now.
Source: FEARNBULK



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