The dry bulk market faced declines across Capesize, Panamax, Ultramax/Supramax, and Handysize sectors, with weak demand, oversupply, and subdued activity weighing heavily on rates in both basins, reports Baltic Exchange.
Capesize
The Capesize market faced a difficult week, marked by steady declines and a lack of support across both the Pacific and Atlantic basins. The BCI 5TC began on a subdued note at $12,702 but saw consistent downward pressure, plummeting to $10,474 by Friday, a loss of over $2,200 across the week. In the Pacific, an initial rise in cargo volumes failed to sustain any momentum as the growing tonnage list and subdued demand weighed heavily on rates. Limited activity from key miners exacerbated the pressure on earnings. The C5 index started the week at $7.42 but dropped to $6.990 by weeks end. Meanwhile, the Atlantic offered little relief. Despite increased January cargo availability from the South Brazil and West Africa to China markets, Brazilian iron ore exports slowed, and an oversupply of vessels kept rates under pressure. The C3 index fell from $17.56 on Monday to $16.230 by weeks end. Fronthaul activity from East Coast Canada added to the bearish tone, with significant discounted fixtures reported.
Panamax
A continuation of the previous week played out with a stable opening to the week for rates in the Atlantic. Trans-Atlantic demand remained the main driver here, whilst fronthaul interest remained lacklustre all week. An 81,000-dwt delivery Skaw achieved $10,000 for a trip via US Gulf and Egypt, redelivery Gibraltar earlier part of the week, however this was deemed closer to $9,000 as we close highlighting the slow decline. Asia struggled to get going this week with pressure mounting from the very start as the tonnage count grew. This was pitched against a sparse looking demand book and rates drifted consequently, $7,000 rumoured fixed on an 81,000-dwt delivery China for a NoPac round. Despite the gloom in Asia, there was plenty of period discussion, and despite the lower levels to previous, numerous reports of deals concluded including an 81,000-dwt delivery China fixed basis 9/12 months at $7,300 for the first 40 days and balance thereafter at $11,750.
Ultramax/Supramax
With the looming widespread festive period arriving, the Atlantic remained a rather positional affair during the week. The North Atlantic continued a rather subdued trend. A 64,000-dwt fixing delivery US Gulf for a petcoke run to India at $23,000. Whilst a 63,000-dwt fixed a trip from the US Gulf to North Brazil at $18,500. The Mediterranean-Continent struggled to impress with limited fresh enquiry appearing. A 58,000-dwt fixing delivery Hamburg for a trip to South Brazil at $9,250 option North Brazil at $9,700 for the first 45 days and balance $14,000. The South Atlantic saw limited action and remained finely balanced. Further losses were seen in the Asian arena as sentiment remained low. A 63,000-dwt open CJK fixed a NoPac round at $12,000. Further south, a 55,000-dwt fixed delivery Singapore trip via Indonesia redelivery China in the low $10,000s. A fairly good amount for demand from the Indian Ocean, although again rates remained rather subdued. A 57,000-dwt fixing delivery Richards Bay trip to Pakistan at $15,000 plus $150,000 ballast bonus. Period activity lacked much interest, a 58,000-dwt open Mumbai fixing 3/5 months trading in the low $10,000s.
Handysize
The market saw limited visible activity across both basins this week. In the Continent and Mediterranean regions, the Continent appeared softer due to lack of fresh scrap orders and Russian demand while the Mediterranean side was relatively stable. A 37,000-dwt fixed delivery Brunsbüttel trip via Poland to Conakry at $11,300. In the U.S. Gulf, the market remains very slow, with very little fixing activity being recorded, charterers have been bidding lower than the previously agreed levels. A 38,000-dwt fixed for delivery U.S. Gulf to redelivery Morocco at $12,000. Meanwhile, the South Atlantic appeared more balanced with market sentiment remaining generally stable. A 34,000 heard fixed delivery Recalada redelivery West Africa at $16,000. In Asia, the tonnage count has been increasing throughout the week, leading to downward pressure on rates and some brokers anticipating further market softening. A 28,000-dwt heard fixed delivery Japan redelivery Southeast Asia at $8,000.
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Source: balticexchange
