Bulk Carrier Shipping Market (‘22/16W)

 The Baltic Freight Index(BDI) rose for three consecutive trading days, reaching its highest level in seven trading days since April 5. According to the Baltic Shipping Exchange on the 14th, BDI was 2,137P, up 69P (3.34%) from the previous trading day. This is due to rising rates for all shipping sectors. The index reached its highest level in seven trading days, but has fallen by 20.53% this month and has fallen 8.01% for the year.

The Capesize Index (BCI), which tracks 150,000 tons of iron ore and coal cargo, surged 8% to 1,481P, the highest in a week.

The Panamax Index (BPI), which tracks cargoes of 60,000 to 70,000 tons of coal and grain, rose 2.5% to 3,042P, and the Supramax (BSI) index among small ships rose 36P to 2,497P.

BDI rose 4% on a weekly basis, marking its first gain in five weeks.

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1.     Capesize Weekly Trend

1-1.        Weekly Market Briefings

•  Slight increase due to insufficient supply of ships due to deepening of congestion near Shanghai, and concentration of shipments before Easter holiday (April 15-18) in the Western region in the second half of the week. 
• The number of dry cargo ships waiting in Shanghai Port is about 220, up 15% from a month ago.
  - Ships were transferred to nearby ports such as Rizhao and Qingdao, causing disruptions in the supply of ships in the Pacific routes.
  - On the other hand, despite the lifting of the blockade of Tangshan (April 11), the blockade of other major steel cities such as Zhangjiagang and Handan continued, and iron ore demand has not yet shown a clear recovery trend. 
• Stee mills still procurement of iron ore from ports rather than new imports, so China’s iron ore port inventories declined for the third week in a row and fell below 150 million tons for the first time since November last year. 
• The prospect that the lockdown in the Shanghai area will be lifted soon is being raised cautiously, and expectations for a recovery in the Cape market are gradually increasing, but the specific timing is still unclear.

 1-2.        Technical analysis

MACD : March 23, 2022, Trade signal (Short position establishment) signal generated

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2.     Panamax Weekly Trend

2-1.        Weekly Market Briefings

 

•  (15W) Increases due to increased demand for coal in Europe and Asia, and concentration of demand before Easter
• European Commission announces plan to ban Russian coal imports from mid-August (April 8)
  - As a result, coal importers anticipating a decrease in the supply of coal to Europe and intensifying competition to secure coal in the future, started stockpiling stocks and increased cargo volume to Europe.
• China's coal import demand is sluggish due to the continued lockdown of major cities such as Shanghai
  - In India, electricity demand is expected to increase ahead of the arrival of the monsoon season, but coal inventories at major power plants are very small, less than 9 days' supply. In response, the government is urging power plants to increase their income to prevent power shortages.
• The market is expected to remain robust this week as the demand for coal in Europe and Asia continues.

 2-2.        Technical analysis

MACD : March 31, 2022, Trade signal (Short Position establishment) signal occurred.

 

Thanks.