Short-sea market fundamentals in brief // week 21

The small-tonnage shipping market is soft. The Black Sea freights have sagged by $0.98/t since they still cannot find bottom. Meanwhile, rates seem to get totally stuck within the previous ranges in the other regions. As a result, the Global CFI has edged down by $0.25/t. The bunker fuel prices have been fluctuating over the week, with just a small reduction seen at the majority of world’s largest ports. However, this has barely provided shipowners with any noticeable support.

The Global ISM Commodity Index for a coaster market has risen by almost 6 points owing to price hikes on the grain market and, to some extent, in influential segments of the other commodity markets under review.

A rapid upward price trend persists on the grain market amid mounting concerns about the future harvest in all major grain growing regions. The most significant surge in quotes for wheat, corn and barley has been seen in Ukraine, while prices for Russian and EU-origin wheat and barley have also shown a rather noticeable growth.

The metallurgical market has firmed up somewhat after the last week’s uncertainty. Turkish mills are actively purchasing imported billets. HRC trade in small-tonnage lots looks rather active as well. At the same time, rebar exports remain totally dead.

Turkey’s tenders for June shipments of thermal coal have triggered excitement on the market and, therefore, boosted prices.

The sentiment on the fertilizer market is mixed. Most exporters are sitting on the fence expecting the results of the Indian tender that is going to give a direction to pricing for Russian and Egyptian fertilizers. Meanwhile, Egyptian exporters managed to ink several deals for the supply of urea by small-tonnage vessels.