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Tuesday, 29 November 11
SOUTH AFRICAN COAL INTO CHINA, THE ACTIVITY WAS SLOW - BRS


Capesize
The Capesize market in Atlantic stayed pretty firm last week with transatlantic rounds being fixed in the high twenties. Sentiment was less optimistic towards the end of the week. There were a few Fronthauls from Saint Laurent, also fixed at firm levels, which kept the Atantic market reasonably with TC equivalents hovering around the US$50,000 mark. On the Pacific front, the market was a bit less active and pacific rounds were negotiated in the low/very low twenties time charter equivalent. West Austr-r/v were being fixed at 10.80 level for December lifting and for prompt requirements, rates reported were closer to US$12 pmt  mark. South African Iron ore stems into china were reported being fixed in the mid-high US$19’s pmt. For South African Coal into China, the activity was slow as the Chinese stockpiles figures are on the high side. There  was also some short  period activity with large 180,000t units being fixed in the US$17,500/ 18,000 for a year and roughly  same levels for short period.

Panamax 
It was a fairly lackluster week all in all with the Panamax 4TC closing at US$14,431, coming off just a touch US$109/day w-o-w. We saw a marginal drop if US$56/day in the Atlantic w-o-w and US$695 in the Pacific whilst FH nudged up US$568/day. Even though tonnage remained tight the Atlantic took a downturn as negative sentiment prevailed due to a clear lack of fresh cargoes entering the market and limited fixing taking place. The FH remained steady over the front end of the week with a few fixtures being reported including a 2001 built Panamax at US$27,000, which equated to a BPI equivalent of about US$28,300, however by end of the week the momentum of the past weeks had eased. The Pacific softened throughout the week as open tonnage climbed on top of limited cargoes in the market placing further downward pressure. Future prices also declined over the week with modest volumes prevalent overall. December and Q1 contracts lost 1.7% and 2.5% respectively, while Cal12 fell away 3.5% w -o-w. The period market remained steady however relatively inactive with very few reported fixtures. 3-5 months was done at US$12,500 levels and 4-6 months was close to US$14,000. 

Supramax/Handy
The general impression was that the epidemic on rates in the East was fast drifting towards the Atlantic. This was slightly noticed in the ECSA market were a 58,000t spot  achieved  abt US$14,000 +BB  from Ecsa to the continent while  a similar size got US$12,000 from west Africa to the Black Sea. The US Gulf still maintained strong levels for vessels willing to go East as a 58,000t got about US$32,500 and a 52,000t saw abt 27,000 to the East Med. The Far East Market still witnessing a bottomless pit with modern ships going for a barely US$8,500 for an indo –China and same numbers was seen for indo-India trips. So far not that much improvement in the market to bring back the smile on owners faces. The Market still remain pretty much unattractive for the smaller sizes as a 30,000t went at US$6,000 for a Singapore-West Africa trip. An Imabari 28 went at US$5,000 for a Pacific round trip. The US Gulf a consoling Zone for the owners as we noticed an 34,000t going at abt US$19,000 for a trip to the continent and similar size saw US$16,000 for continent west Africa voyage. Some owners manage to hide from the cyclones faced in the spot market and gave out their ships for period  which how ever paid significant premium over the spot market. A 53,000t went at US$12,500 for a 3-5 months period and similar number for a 56,000t that was fixed at about US$12,000 for a 4-6 months period. It was even more lower for the smaller sizes with a spot modern 33,000t going at  about US$7,800 for 4-6 months period.
Source: Barry Rogliano Salles



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