- FFA market affected by meagre shipping activities due to European holidays and by fewer iron ore cargoes coming out of western Australia.
- The Brazilian miner did not make more July shipment for rates to grow, still the market is optimistic about Vale, as its Brucutu mine is expected to be restarted.
- The mine has a capacity of 30 mmt production year in the near term, and has already produced 10 mmt per year and remaining 20 mmt will be restarted soon.
- Concern about the recent attacks on oil tankers in the Gulf of Oman has succumbed to a hike in oil prices, influencing the shipping market index.
- Panamax paper market slid to $9,135 on Thursday, down $101 on-day and down $398 since Monday’s rate at $9,533.
- Supramax paper market also succumbed and the time charter average dipped by $12 on-day to $8,094 on Thursday.
- Handysize market had no trades to report and the time charter average gained by $32 on-day to $6,269 on Thursday.
The Capesize market was hit by lower shipping activities due to European holidays this week and by fewer iron ore cargoes coming out of western Australia, reports FIS.
Brucutu mine back in action
The Brazilian miner Vale was expected to make more July shipment for rates to grow, but that did not happen this week and the freight markets remained sluggish outside of Western Australia.
Even with a low activity from western Australia, the market is optimistic about Vale, as the Brazilian miner expects to restart its Brucutu mine.
The mine has a capacity of 30 million mt production year in the near term.
A trade source reveals that the Brucutu mine has already produced 10 million mt per year through the dry-stacking process without the tailing dam. The remaining 20 million mt will be restarted over the next few days.
Ten Capesize vessels fixed
Once the mine is back in business, it will result in more cargoes from Brazil. The miner also pledge to increase iron ore shipments out of its S11D projects.
An average number of 10 Capesize vessels have been fixed over the past two weeks and the market is open to more vessels.
Oil tankers attacked at Gulf of Oman
There has been an increasing concern about the recent attacks on oil tankers in the Gulf of Oman and this has succumbed to a hike in oil prices.
Decline in Capesize paper freight rate
Even with the oil spike influencing the shipping market index, it has put a decline in the Capesize paper freight rate.
By Thursday, 13 Jun 2019, the Capesize 5 time charter average recorded at $13,621, down $368 on-day, and down $1,247 since Monday.
Downfall in Panamax paper market
The European market came to a quick close with Whit Monday celebrations, which resulted in a low trade volume and then impacted the Panamax paper market.
As such, the Panamax paper market slid to $9,135 on Thursday, down $101 on-day and down $398 since Monday’s rate at $9,533.
Dip in Supramax paper market
The Supramax paper market also succumbed to a similar fate from the short European work week and the time charter average dipped by $12 on-day to $8,094 on Thursday.
Meanwhile, the handysize market had no trades to report and the time charter average gained by $32 on-day to $6,269 on Thursday.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: FIS
