Bulk Carrier Shipping Market (‘22/13W)

 As of March 24, BDI(Baltic Dry Index) recorded 2,544. 17.2% higher than the same period last year(YTD vs YTD). In particular, the fare for the Cape, which is twice the size of the Panamax, is rather half the price. If China's iron ore issue is resolved, freight rates may surge again soon.

 

---

1.     Capesize Weekly Trend

1-1.        Weekly Market Briefings

 

•  China responds with a zero-corona policy to control the spread of Omicron and expands lockdown measures.

- The Chinese government imposed a lockdown in Shenzhen from 3/14 to 20 to prevent the spread of COVID-19, and then from 3/23, indefinite lockdown in Tangshan

- Shanghai will also divide the city in half and implement phased lockdown for 4 days each starting from March 28th

- Decline in iron ore demand and decline in cape market conditions due to slowdown in industrial activity and a decrease in the utilization rate of steel mills due to the lockdown decree. The operation of industries that demand steel, such as construction, has significantly contracted

 - China's demand for rebar has decreased by about 30-40% compared to before the implementation of the lockdown ordinance.

 

• As the undervaluation has deepened compared to Panamax for each major route, an increase can be expected due to the alignment between the ships.

  

1-2.        technical analysis

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

---

2.     Panamax Weekly Trend

2-1.        Weekly Market Briefings

 

• South American grain steadily support ships, while demand for coal imports from China and Europe rises
•  Scheduled to start regular maintenance of the railway (Daqing Railway) connecting China's coal producing areas and loading ports on 4/8
  - China's coal consumers, who expected a contraction in their domestic coal supply, increased their imports and supported the freight market
•  Europe-bound coal continues to flow in demand from long-distance procurement, such as Colombia and South Africa, to replace Russian coal. Announcing a plan to reduce dependence
•  The market is expected to remain robust as coal import demand from Europe and China continues this week.

 

2-2.        technical analysis

MACD : March 23, 2022, Trade signal (Long Position establishment) signal occurred

 

Thanks.