Weekly Market Report 7/7/17 - 14/7/17

14th July 2017

NWE/MED

The European coaster market has had a reasonably active week with several fixtures being concluded, especially in NWE. Butane continues to be the driving force, particuarly smaller parcels by PetroIneos ex Grangemouth. There are prompt vessels in NWE across all sectors, and with the larger coasters now competing on part cargoes this is leading to further downward pressure on rates.

It has been quieter in the Med and Black Sea with some traders showing potential relet positions. Some Lavera export tonnes were discussed, however, these were eventually lifted on trader controlled vessel. 

SEA/FEAST

The Singapore IHS conference has kept the Asian spot market muted this week with limited demand from the receivers. The Total CFR purchase tender for delivery into Bangladesh was awarded this week though details are unconfirmed. On the freight market, a lack of ships kept spot rates firm whilst on the period market traders are still keen to take more 5000cbm ships on charter. Earlier this week, a European trading house took another 5000 cbm ship on charter from a European owner for 1 option 1 years for Eastern trading.

According to some press reports Enterprise Products and Navigator Holdings have signed a Letter of Intent to develop an Ethylene export terminal at Morgan's Point in the Houston Ship Channel. For the sake of owners (and traders and brokers) looking to move more long-haul petchems, we hope these long-term commitments are forthcoming, however, we remain less than convinced about a new golden age of US Ethylene exports.

In Asia, apart from Petronas quoting some spot sell tenders, discussion on intra-Asia Ethylene movements has been minimal. The NE Asian Propylene market has shown some strength in anticipation of the scheduled turnaround at Formosa Taiwan with traders exploring the possibility to move deep-sea cargoes to fill the expected production loss. The C4 market has also been quiet with no fresh tenders heard thus far this week. The main issue has been delays in Chinese ports due to congestion and ullage issues resulting in ships being cancelled. Unsurprisingly, with a slack petchem market some small pressure ships are now being tempted to engage in the LPG market.

Time Charter Fixtures

Immanuel Schulte (2009/21,000) for 30-40days TC to a/c SHV @ arnd 8,500pdpr.

Sale and Purchase/New Buildings

No snp or new buildings to report. 

Scrapping

No new scrapping news to report

 

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