Short-sea market fundamentals in brief // week 16

The small-tonnage freight market has remained quiet and depressed, tonnage-cargo ratio imbalanced in all regions. Even more so, the decline has sharpened due to Easter holidays in European countries. In such circumstances, the Global CFI has fallen again, this time by $0.18/t due to another $0.53/t reduction in the Azov Sea CFI, a $0.34/t fall in the Gulf of Finland CFI and a $0.26/t decrease in the Lower Baltic & Continent CFI.

After the last week’s rapid plunge, prices for all types of bunker fuel have showed a U-turn to quite a considerable increase, which worsens an already unexciting situation for ship owners.

Despite pretty mixed trends on the commodity markets under review, the Global ISM Commodity Index has inched up by almost 1 point.

The grain market is dominated by divergent tendencies this week. Price reductions for Ukrainian wheat are triggered by seasonal factors, while corn increased its value thanks to lively demand from the EU and Turkey. Importers’ interest in Russian wheat remains moderate despite lower prices. Meanwhile, tenders in the Middle East and Africa supported quotes for EU-origin wheat.

The metallurgical market can be called sluggish. Demand for Russian HRC and billets is almost zero in Turkey given reduced quotes for scrap and rebar. Despite significant price cuts, oversea sales of Turkish rebar are sporadic.

The situation on the thermal coal market is ambiguous this week. Growing coal indices support quotes for imported thermal coal in Western Europe. Prices for Russian coal have inched up in Turkey despite muted demand.

Oversea trade in nitrogen fertilizers remains quiet. The announcement of results of the Indian tender failed the support the urea segment, so Egyptian, Middle Eastern and Russian exporters have to reduce the corresponding quotes due to sluggish demand. Russian AN prices have totally stalled, fresh deals are occasional. At the same time, brisk sales of DAP and MAP with June shipments from Russia and Morocco allow exporters to set considerably higher quotes.