Short-sea market fundamentals in brief // week 19

Lull persists on the small-tonnage shipping market. The Global CFI has fallen by another $0.65/t primarily due to a $2.15/t slump in the Azov Sea CFI and a $1.37/t fall in the Gulf of Finland CFI, as well as due to decreased Med CFI (down $0.53/t) and Lower Baltic & Continent CFI (down $0.26/t). The last week’s considerable plunge of bunker fuel prices has ceased after May 6, depriving owners from at least some kind of support.

A 3-point splash in the Global ISM Commodity Index for a coaster market gives owners hopes for brigher end of May - start of June.

Thus, the grain market is dominated by rapid uptrend. Quotes for European and Ukrainian wheat are going up amid rocketing futures. Even despite abundant inflow of cheap Russian origin, unfavorable weather conditions for crops in key grain growing countries and, as a result, reduced forecasts of the future harvest roiled the market and spurred the price growth. Following wheat, European and Black Sea corn and barley have also increased their value.

As before, Turkish market is the only sight-catching spot for thermal coal exporters in the Western Hemi. Meanwhile, the lion’s share of shipments falls on large-tonnage traffic, with just small occasional consignments being carried by coasters.

The metallurgical market is flat and depressed. Export trade of billets and HRC is sluggish; price adjustments are insignificant. Rebar exporters have left the market due to total lack of demand.

Oversea sales are occasional on the fertilizer market. This week has been quite uneventful, with just a few small fresh deals and mixed price trends.