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WEEKLY MARKET REPORT
June 5th, 2009 / Week 23
This week we saw huge volatility in the market as clearly evidenced by the sharp movements of the indices - although all of them ended positively on a week-to-week basis. The BDI rose 797 between Monday and Wednesday and then lost more than half of that in the last 2 days to close the week around 9% higher at 3809 points. The downward trend is expected to continue into next week.
Nevertheless, on the back of the last 2-3 weeks increase in the market, this week we saw some sales at increasing price levels but as the market's increase was questioned by the futures market some deals seem to be failing.
Market rumors suggest that couple of panamax bulkers that are said to have been committed have now failed. We understand that these are the reported sales of the “Far Eastern Express” (69k/1994 Japan) which was sold around 10 days ago at US$ 14.35 million to Chinese buyers and the “Bison” (77k/2005 Japan) which was committed for excess US$ 37 million but was placed in the market again for sale.
Jin Hui continue their aggressive selling process and have done very well to capitalize this market spike selling two of their vessels. The supramax “Jin Kang” (52k/2003 Tsuneishi Cebu, Philippines) for a firm price of US$ 26.80 million and the panamax "Jin He" (77k/2006 Japan) for an extremely firm price in the region of US$ 39 million from Indian buyers who waived inspection !!!
Comparing the price of this panamax sale with that of the “Ikan Kerapu” (76k/2005 Japan) sold end of April for US$ 30 million and the sistership “Nord Jupiter” (77k/2006 Japan) also sold a month ago at US$ 33 million then one can appreciate how quickly the market has moved. We can even compare this with the recent sale of the Universal Kamsarmax type 82,000 dwt re-sale with delivery in July 2009, which was committed 2 weeks ago at US$ 38.50 million.
Activity in the tankers is still low however, GNMTC of Libya have picked up two 47,000 Dwt MR tanker resales with prompt delivery from Hyundai Mipo in Korea for a decent price of US$ 37.50 million each. Considering the market this can be considered as a good price for the sellers. The same buyers also purchased a couple of smaller product tankers 29,000 dwt, built 2005 for a modest US$ 25.50 million each.
India remains the most active buyer for demolition but perhaps the best prices are still achievable in Pakistan in the high 200's. Stagnation is the best word to describe the demolition market in Bangladesh whilst it is nice to see the market in China to continue it's demand and maintaining good price levels in the region of US$ 230-240 level.
Enjoy the report and for those in Greece enjoy the long weekend.
- more here:
http://download.hellenicshippingnews.com/pdf/weberseas/WeberSeas%20Weekly%20Report%20June%2005-09.pdf
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Panamax “Nordkap” 2002 – 77.229 dwt (D/S Norden)
- in LaBaie waiting with a full load of bauxite at the Rio-Tinto Alcan installations.
12.11.08 - Photo: © Robert Tremblay, LaBaie, Québec, Canada
WEEKLY MARKET REPORT
June 5th, 2009 / Week 23
This week we saw huge volatility in the market as clearly evidenced by the sharp movements of the indices - although all of them ended positively on a week-to-week basis. The BDI rose 797 between Monday and Wednesday and then lost more than half of that in the last 2 days to close the week around 9% higher at 3809 points. The downward trend is expected to continue into next week.
Nevertheless, on the back of the last 2-3 weeks increase in the market, this week we saw some sales at increasing price levels but as the market's increase was questioned by the futures market some deals seem to be failing.
Market rumors suggest that couple of panamax bulkers that are said to have been committed have now failed. We understand that these are the reported sales of the “Far Eastern Express” (69k/1994 Japan) which was sold around 10 days ago at US$ 14.35 million to Chinese buyers and the “Bison” (77k/2005 Japan) which was committed for excess US$ 37 million but was placed in the market again for sale.
Jin Hui continue their aggressive selling process and have done very well to capitalize this market spike selling two of their vessels. The supramax “Jin Kang” (52k/2003 Tsuneishi Cebu, Philippines) for a firm price of US$ 26.80 million and the panamax "Jin He" (77k/2006 Japan) for an extremely firm price in the region of US$ 39 million from Indian buyers who waived inspection !!!
Comparing the price of this panamax sale with that of the “Ikan Kerapu” (76k/2005 Japan) sold end of April for US$ 30 million and the sistership “Nord Jupiter” (77k/2006 Japan) also sold a month ago at US$ 33 million then one can appreciate how quickly the market has moved. We can even compare this with the recent sale of the Universal Kamsarmax type 82,000 dwt re-sale with delivery in July 2009, which was committed 2 weeks ago at US$ 38.50 million.
Activity in the tankers is still low however, GNMTC of Libya have picked up two 47,000 Dwt MR tanker resales with prompt delivery from Hyundai Mipo in Korea for a decent price of US$ 37.50 million each. Considering the market this can be considered as a good price for the sellers. The same buyers also purchased a couple of smaller product tankers 29,000 dwt, built 2005 for a modest US$ 25.50 million each.
India remains the most active buyer for demolition but perhaps the best prices are still achievable in Pakistan in the high 200's. Stagnation is the best word to describe the demolition market in Bangladesh whilst it is nice to see the market in China to continue it's demand and maintaining good price levels in the region of US$ 230-240 level.
Enjoy the report and for those in Greece enjoy the long weekend.
- more here:
http://download.hellenicshippingnews.com/pdf/weberseas/WeberSeas%20Weekly%20Report%20June%2005-09.pdf
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Panamax “Nordkap” 2002 – 77.229 dwt (D/S Norden)
- in LaBaie waiting with a full load of bauxite at the Rio-Tinto Alcan installations.
12.11.08 - Photo: © Robert Tremblay, LaBaie, Québec, Canada
6/6 2009 10:31 fcras 0
13043 Spotting green shoots in the economy became a somewhat easier task this week, with analysts and investors increasing their optimism that the pace of the recession is continuing to slow. News that the US.................. link
http://download.hellenicshippingnews.com/pdf/WeberWeekly23.pdf
6/6 2009 10:34 fcras 013044 Let’s be careful when looking at improved Worldscale rates! In fact, taking into account the continuous increase in bunker costs (close to US$380/mt in Rotterdam and US$400 in Fujairah), the actual impact on daily returns is minimal. However, one must .............. link
http://download.hellenicshippingnews.com/pdf/BRS/tnl-625-2.pdf
6/6 2009 10:41 fcras 013045 Over the past few months crude floating had increased to such an extent that in May, some 10% of the VLCC fleet (around 50 vessels) had been taken out of the tanker market for this purpose. ...... link
http://download.hellenicshippingnews.com/pdf/gibson/TMR%2020090605.pdf
