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Thursday, 04 March 10
THE INDIAN MARKET WAS STILL STRONG - FEARNRESEARCH


HANDY
Activity  has  gradually  improved  in  the  Atlantic  throughout  the  week.  All areas  seeing  substantial  increases  -  mid  40´s  for  Supras  bss  Bsea  to  FEast and  mid/high  20´s  for  t/a  rounds.  As  advised  in  our  last  report  short  period activity  increased  and  a  58000  dwt  got  USD  32250  bss  dely  USG  for  3/5 mos  redel  Atlantic.  Another  53000  tonner  achieved  a  whopping  USD  35000 for  4/5  mos  dely  USG  but  with  WW  redel.  Outlook:  Firm  conditions  in  the Atlantic  set  to  continue.  In  the  FEast  the  market  was  still  firm  during  the last  week  -  the  rates  remaining  to  improve  for  all  directions. 

For  Pacific rounds  Supras  trading  low/mid  20´s  and  for  Indo/India  coal  trips  Supras  can achieve  around  mid  10´s.  There  was  a  serious  interest  in  period  business  and for  short  period  Supras  were  fixed  in  the  mid  20´s. 

The  Indian  market  was still  strong  and  for  iron  ore  trips  from  WCI  to  China  Supras  trading  in  the very  high  30´s/low  40´s.  Supras  open  ECI  can  achieve  low/mid  30´s  for trips  via  WCI  to  China.

PANAMAX
The  Panamax  market  left  last  week  with  no  clear  direction  and  little  activity in  the  Pacific,  while  the  Atlantic  market  was  holding  much  firmer. Beginning  of  the  week  was  slow  until  several  grain-houses  became  very active  with  a  number  of  cargoes  out  of  ECSA.  This  pushed  the  rates  for FEast  via  ECSA  to  FEast  up  to  around  USD  30,000  daily.  Same  trip  with Atlantic  delivery  got  excess  USD  40,000  daily.  The  much  firmer  spot market  gave  support  to  the  period  market  with  several  fixtures  concluded  at healthy  levels. 

Modern  Panamaxes  with  FEast  delivery  got  USD  27/28,000 daily  for  short  period  and  24/25,000  for  12  months.  Levels  and  activity  also gradually  increased  during  the  week  in  the  FFA  market.

CAPESIZE
Despite  high  activity,  this  segment  is  only  now  finally  showing  signs  of improvement  after  the  Chinese  break.  After  dropping  well  below  USD  9 pmt,  equivalent  to  just  below  USD  20000/day  on  index  tonnage,  the  WAust/ China  trade  is  again  paying  USD  9+  and  climbing.  This  is  much  on  the  back of  rising  Atlantic  fronthaul  activity  and  -levels,  absorbing  parts  of  the  early units  in  China  +  ballasters.  The  Tubarao/Qingdao  conference  trade  stands  at USD  27  pmt  with  the  corresponding  fronthaul  tc  rate  of  USD  50000/day.

Period  interest  is  again  widespread  with  180000  dwt/blt  2009  recently  done for  4-6  months  at  usd  33750  basis  delivery  China  prompt.  12  months  also concluded  on  18000  dwt/built  2010  ex  yard  Mokpo  prompt  at  USD  35000.
Source: Fearnresearch



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