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Sunday, 06 June 10
THE DOWNWARD TREND FOR S6 AND S7 ROUTE IS LIKELY TO CONTINUE NEXT WEEK - VISTAAR


COALspot.com: "This seemed market heading for corrections with all sectors down", said, Capt. Reddy, MD of Vistaar Shipping Singapore, an experienced ship operator in Singapore.

Even though the cape index showed gains beginning of the week , but started to soften towards second half of the week and the index closed at 3,844 points down by 2.04 pct.

The BDI was down by 5.74 pct and closed at 3,844 points. The most affected was Panamax and Supramax category with indices softening by almost 8 pct and closed at 3,878 points and 2,741 points.

BDI (Baltic Dry Index Changes)

BALTIC DRY INDEX CHANGE
 
This week
Last week
Change
Change %
Baltic Dry Index
3844
4078
234   ¯
-5.74
Baltic Cape Index
5110
5217
107   ¯
-2.05
Baltic Panamax Index
3878
4247
369   ¯
-8.69
Baltic Supra Index
2741
2982
241  ¯
-8.08
Baltic Handy size Index
1426
1477
51  ¯
-3.45
As of 4 June 2010

The handy size index was down by 3.45 pct and closed at 1,426 points. The market seems heading for some correction at least for the time being as the steel demand seems to be softening and having affect on iron ore demand. Spot vessels will willing to fix at low rates compared to previous weeks as there were not many firm orders out of Indonesia and Australia.

The average charter hire was at Cape/US$ 55,010 per day, Panamax/ US$ 31,118 per day, Supramax/ US$ 28,662 per day and Handysize/ US$ 20,703 per day.

The Supramax index in the Fareast (S6 route) was down by US$ 2,120 per day and closed at US$ 24,114 per day. The  ECI/China (S7) route continued to softened and was down by  US$ 3188 per day and closed at US$ 24,042 per day . The downward trend for S6 and S7 route is likely to continue next week also.

The futures for three years (2010-2012) was at around Cape/ US$ 31,000 per day, Panamax/ US$ 21,500 per day, Supramax/ US$19,000 per day, Handy size/ US$ 14,000 per day.

The congestion in EC Australian ports was at 118 vessels this week (last week 128 vessels ). The vessels waiting at main coal loading ports were at Hay point/12, DBCT/56, Gladstone/12, Abbot Point/Nil, New Castle/37 vessels, Port Kembla/1 vessel. On the WC Australia iron ore vessels waiting was down to 27 vessels (last week 42 vessels). 
  
The waiting at Indian ports for coal vessels was quite normal around 3/4 days except that congestion starting to increase at Visakhapatnam and Haldia in addition to Paradip.

The Brent crude prices was to US$ 71.71 per barrel (last week US$ 74.14 per barrel). The was slightly firm this week and closed at US$ 443 pmt (ifo 380 cst ex Singapore) on 4th June 2010.

CLICK HERE for Vistaar’s forecasted (Terms & Conditions Apply) spot freight rates for coal & Iron-ore cargo for specific routes(cs)



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