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NOTE: for full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.
OVERVIEW
A pick-up in enquiries was witnessed within some parts of Europe, however, rates remain soft as competition for cargoes sees owners increasingly opt to place vessels in employment rather than remain idle during the summer period.
Diminished activity on both the east and westbound routes across the Atlantic has resulted in a further softening of freight rates on both legs. Participants, however, wait anxiously on the impending decision over the possible removal of the tax credit system for US ethanol producers.
A rebound in Asia’s styrene monomer prices in recent weeks has led to an arbitrage window opening from the US to China, leading cargoes to be sold for late August and September arrivals.
In contrast to the majority of routes within the market, a surging demand for palm oil sees freight rates from southeast Asia to both India and Europe on the rise.
BUNKER FUEL PRICES
Bunker fuel prices declined slightly, following the marginal losses made in the crude oil market. IFO380 was trading at $659/tonne FOB Rotterdam late on Friday, down $1.50/tonne from a week earlier, according to Bunkerworld. LS380 (1% sulphur) made greater losses, with prices quoted at $695.50/tonne FOB Rotterdam, down by $14.50/tonne.
Traffic continues to move around the North Sea, with cargoes of benzene, caustic soda and reformate seen in the market this week. A 3,000 tonnes cargo of chemicals from Rotterdam to Thames was reportedly fixed at €14/tonne, maintaining the low price levels of recent weeks.
Although participants noted greater numbers of cargoes travelling into the Baltic than out, cargoes of naphtha and gasoil kept vessels moving within the region.
Enquiries for veg oil travelling from northwest Europe to the Mediterranean were also seen in the market, however activity on this route was considered quiet.
With a lack of vessels willing to undertake the Mediterranean to northwest Europe voyage, activity on this route remains thin. An enquiry involving 2,500 tonnes of slack wax from Augusta to Fawley was reportedly postponed after rates as high as $110/tonne were quoted.
Greater numbers of cargo enquiries were seen within the Mediterranean region this week, but rates remain low as shipowners prefer to undertake voyages on lower rates rather than remain idle, to minimise losses made.
Enquires of gasoil and gasoline were also on the rise around the Black Sea, participants attributed the increased demand for these products to greater consumption throughout the summer holiday season.
UK / NORTHWEST EUROPE
FIXTURES:
5,000 tonnes benzene Rotterdam / Huelva 10-14 July RNR
4,000 tonnes bioethanol Santander / Halmstad 18-22 July RNR
7,000-8,000 tonnes caustic soda solution Runcorn / Norfolk 20 July RNR
6,000 tonnes reformate Hamburg / ARA 27-29 July $85,000lps
3,000 tonnes urea ammonium nitrate Sluiskil / Bilbao 20-22 July RNR
ENQUIRIES:
4,000 tonnes alcoline Tees / Dublin 3-5 August
2,200 tonnes alkylate Antwerp / Slagen 29-31 July
4,000 tonnes benzene Terneuzen / Gonfreville 5-9 August
10,000-12,000 tonnes benzene + mixed xylenes Fawley / Rotterdam 30 July- 1 August
4,000 tonnes benzene + mixed xylenes Port Jerome-Gravenchon / Rotterdam 3-5 August
500 tonnes ethanol Rotterdam / Dagenham 5-7 August
2,000 tonnes FAME Amsterdam / Thames 10-12 August
5,000 tonnes FAME Hamburg / Gdynia 11-15 August
5,000 tonnes FAME Rotterdam / Hamburg 3-5 August
6,000-7,000 tonnes fuel oil Rotterdam or Kalundborg / Faroe Islands 30 July- 2 August
10,000 tonnes gasoline Port Jerome-Gravenchon / Thames or Tees 25-27 July
11,000 tonnes gasoline Slagen / Dublin 3-5 August
6,000 tonnes reformate Hamburg / ARA or Thames or Gothenburg 27-29 July
BALTIC
FIXTURES:
11,500 tonnes gasoil Gothenburg / Pori end July $177,500lps
12,000 tonnes naphtha Ventspils / Rostock end July $195,000lps
13,000 tonnes naphtha Ventspils / ARA 3-4 August $235,000lps
ENQUIRIES:
2,000 tonnes base oils Gdansk / Hamburg 10-12 August
11,000-12,000 tonnes diesel Gothenburg / Pori + Vaasa 1-3 August
12,500 tonnes fuel oil Gdansk / Tallinn or Skaw 1-3 August
8,800 tonnes gasoline Riga / Paldiski or ARA 1-3 August
NORTHWEST EUROPE / MEDITERRANEAN + BLACK SEAS SOUTHBOUND
FIXTURES:
N/A
ENQUIRIES:
4,000 tonnes biodiesel Rotterdam / Toros 5-6 August
1,000 tonnes butylacrylate Rotterdam / Gebze 8-10 August
800 tonnes methyl methacrylate Tees / Tarragona 13-20 August
5,000 tonnes refined veg oil ARA / Adriatic 3 August onwards
1,000 tonnes vegoils Dunkerque / Larnaca 8-12 August
MEDITERRANEAN + BLACK SEAS / NORTHWEST EUROPE NORTHBOUND
FIXTURES:
4,000 tonnes aromatics Sarroch / Rotterdam mid-end July €34/tonne
5,000 tonnes aromatics west coast Italy / ARA end July mid $40's/tonne
5,000 tonnes caustic soda solution Fos / San Ciprian 15 July RNR
5,000 tonnes FAME Barcelona / Gijon + Bilbao end July RNR
4,000 tonnes styrene monomer Tarragona / Terneuzen 25-30 July RNR
18,000 tonnes urea ammonium nitrate Black Sea / Rouen or US East coast 2H July RNR
25,000 tonnes urea ammonium nitrate Damietta / Rouen 20-30 July mid $20's/tonne (USEC option- mid $30's/tonne)
ENQUIRIES:
5,000 tonnes beet molasses Damietta / Caen 8 August onwards
3,000 tonnes benzene Lavera / Huelva 6-8 August
6,000 tonnes crude veg oils Barcelona / Portugal end July- early August
6,000-8,000 tonnes pygas Brindisi / ARA ppt
2,500 tonnes slack wax Augusta / Fawley 10-12 August
5,000-6,000 tonnes veg oil Black Sea / Rotterdam 4-10 August
MEDITERRANEAN + BLACK SEAS
FIXTURES:
2,000-2,200 tonnes aromatics Algeciras / Gebze 24-27 July $53/tonne
2,500 tonnes baseoil Augusta / Greece + Cyprus early August $160,000lps failed
3,800 tonnes bioethanol Cartagena / Tarragona 22-25 July RNR
3,000 tonnes caustic soda lye Tarragona / Seville 23-26 July €19-20/tonne
4,000 tonnes caustic soda solution Lavera / La Goulette ppt RNR
10,000 tonnes crude oil Valona / Gela 4-8 August RNR
6,000 tonnes ETBE Tarragona / Taranto 16-20 July RNR
7,000 tonnes ethylene dichloride Assemini / Tarragona 10-14 July RNR
7,000 tonnes FAME Monopoli / Taranto 27-29 July €70,000lps
4,950 tonnes MTBE Marsaxlokk / Rijeka 11-13 August €60-65,000lps
4,700 tonnes sulphuric acid Follonica / Barcelona end July €70,000lps
3,000 tonnes caustic soda solution Constantza / Sea of Marmara 21 July RNR
ENQUIRIES:
2,500 tonnes base oil Algeciras / Alexandria 30 July- 3 August
3,000 tonnes base oil Livorno / Gebze 25-30 July
3,000 tonnes benzene Lavera / Tarragona 2-4 August
4,000 tonnes clean petroleum products Marsaxlokk / Lebanon 29-31 July
5,000 tonnes crude oil Valona / Gela 28-30 July
3,000 tonnes dirty petroleum products Priolo / Ravenna 2-4 August
5,000 tonnes ETBE Cartagena / Livorno + Venice 25-26 July
5,000 tonnes ETBE Tarragona / Livorno + Valencia 25-27 July
7,000 tonnes FAME Monopoli / Taranto 27-29 August
5,000 tonnes FAME Ravenna / Venezia 2-3 August
6,000 tonnes fuel oil Haifa / Gebze early August
6,000-14,000 tonnes gasoil Agioi Theodoroi / Mersin ppt
5,000-6,000 tonnes gasoil Haifa / Mersin 23-31 July
4,500-5,000 tonnes gasoil + gasoline Haifa / Kalecik 29-31 July
5,000-5,500 tonnes gasoil + gasoline Haifa / Kalecik 7-9 August
5,200 tonnes gasoline Fos / Genoa 25-27 July
4,000 tonnes gasoline Gela / Beirut 25-27 July
6,100 tonnes lubes Augusta / Gemlik + Aliaga + Kocaeli 1-3 August
5,000 tonnes lubes Augusta / Alexandria 29-31 July
2,250 tonnes lubes Augusta / Skaramanga + Larnaca 6-8 August
3,000 tonnes lubes Augusta / Berre 5-7 August
2,500 tonnes MTBE Fos / Livorno 1-3 August
4,750-5,250 tonnes MTBE Fos / Haifa 6-8 August
4,950 tonnes MTBE Marsaxlokk / Rijeka 11-13 August
2,000-3,000 tonnes refined veg oil Spanish Med / west coast Italy 26 July onwards
2,800-3,100 tonnes solvents Algeciras / Sea of Marmara 1-5 August
1,200 tonnes urea formaldehyde Damietta / La Goulette ppt
2,000 tonnes vinasses Patras / Haifa 2H August
3,000 tonnes caustic soda solution Black Sea / south Spain ppt onwards
2,800 tonnes clean petroleum products Asproprygos / Poti ppt
3,000 tonnes crude veg oils Italy / Sea of Marmara ppt
3,000 tonnes FAME Italy / Black Sea ppt
10,000 tonnes fuel oil Novorossiysk / Beirut 7-9 August
10,000 tonnes gasoil Haifa / Constantza 27-29 July
4,000-5,000 tonnes gasoil Kavkaz + Novorossiysk / Galati ppt
5,000 tonnes gasoil Kulevi / Gebze 8-9 August
3,000 tonnes gasoil Novorossiysk / Poti 3-8 August
6,000 tonnes gasoil Novorossiysk / Bizerte 1-17 August
2,500 tonnes gasoline Azov / Izmail ppt
2,150 tonnes vegoils Black Sea / Zadar 10 August onwards
5,000 tonnes vegoils Ilychevsk / Mersin ppt
33,000-35,000 hls wine Seville / Romania ppt onwards
23,000-25,000 hls wine Valencia / Temryuk 8-12 August
Business on the transatlantic westbound route has slowed down significantly. A lack of cargoes on offer and increased competition between shipowners for business has seen rates soften further this week.
5,000 tonnes of paraxylene from Rotterdam to Wilmington was fixed in the low $40’s/tonne. 10,000 tonnes of benzene was also seen fixed from north-west Europe to the US Gulf for $32/tonne.
Ongoing lack of activity on the eastbound route has seen increased numbers of shipowners with vessels in the US Gulf seeking employment by transporting clean petroleum products to the Caribbean.
A surge in demand for soybean oil from Peru has seen growing numbers of cargoes from Brazil travelling within the region, further diminishing cargoes seen travelling across the Atlantic.
The possible removal of the tax credit system for US ethanol producers leads participants to believe a further over-supply of vessels could occur within the US Gulf imminently.
TRANSATLANTIC
FIXTURES:
10,000 tonnes benzene ARA / US Gulf end July $32/tonne
12,000 tonnes caustic soda solution Lavera / Rocky Point 15 July RNR
15,000 tonnes caustic soda solution Rafnes / 2 ports US east coast 20 July $31/tonne
7,000 tonnes caustic soda solution Rotterdam / New York 1-10 August $31/tonne
9,000 tonnes caustic soda solution Runcorn / Wilmington 12 July RNR
7,500 tonnes caustic soda solution Runcorn / US Atlantic coast 20-30 July $58/tonne
7,500 tonnes caustic soda solution Runcorn / US East coast 1-10 July $61/tonne
5,000 tonnes paraxylene Rotterdam / Wilmington end July low $40's/tonne
14,750 tonnes raffinate Rotterdam / New York 1-3 August $27/tonne
23,000 tonnes urea ammonium nitrate Constantza / US East coast 27 July- 3 August RNR
18,500 tonnes urea ammonium nitrate Klaipeda / US East coast 1-5 August $30/tonne
30,000 tonnes urea ammonium nitrate Novorossiysk / US East or Gulf coast or Argentina 20-30 July $38-40/tonne
6,000 tonnes FAME US Gulf / Continent 10-25 July RNR
19,000 tonnes sulphuric acid Huelva / Aratu 20-25 July RNR
18,000 tonnes urea ammonium nitrate Klaipeda / Argentina 20-30 July $50/tonne
18,000 tonnes FAME Argentina / Rotterdam 20-30 July $72/tonne
18,000 tonnes FAME Argentina / Spain 15-20 July $77/tonne
17,000 tonnes FAME Argentina / Spain + Italy 15-25 July $69/tonne
11,000 tonnes FAME Argentina / west Med 1-10 August $72/tonne
18,500 tonnes FAME Argentina / Continent 5-15 August $60/tonne
18,500 tonnes veg oil Argentina / Rotterdam 15-25 July $57/tonne
ENQUIRIES:
5,000 tonnes BTX Rotterdam / US east coast ppt
7,000 tonnes caustic soda solution Runcorn / US Atlantic coast 1-3 August
12,000 tonnes clean petroleum products Amsterdam / New York or Jacksonville 29-31 July
4,000-5,000 tonnes isoprene Rotterdam or Antwerp / Houston 9-12 August
400- 500 tonnes isoprene Tallin / Houston 15-30 August
9,000-12,000 tonnes reformate ARA / Sarnia or Namticoke 1-10 August
2,000 tonnes glycerine Upriver Plate / La Coruna or Tarragona July dates
Participants note fewer vessels travelling from Europe to East Asia, as demand for chemicals from the continent diminishes. One broker saw a 2,500 tonnes parcel of chemicals fixed from the Mediterranean to China for $100/tonne, remaining steady from recent weeks.
Increased demand from European biodiesel firms for palm oil has seen enquiries for the product mount in recent weeks, leading rates on the return journey to mark an increase.
Brokers spoke of a 5,000 tonnes cargo from Malaysia to north-west Europe fixed in the high $90’s/tonne, significantly higher from last week.
With fewer volumes of soybean oil arriving in the continent, participants believe rates for biodiesel and palm oils on this route will remain firm throughout the summer period.
EUROPE / EAST ASIA
FIXTURES:
N/A
ENQUIRIES:
1,000 tonnes butyl acrylate Mailiao / Gebze August dates
3,000 tonnes chemicals Map Ta Phut / ARA 27-31 August
2,000 tonnes coconut oil Philippines / Med 1H September
1,500 tonnes ethyl acetate Taizhou or Jiangyin / Gebze ppt
2,500 tonnes ethyl acetate + acetic acid Taizhou / ARA ppt
7,000-15,000 tonnes molasses Thailand / UK or Continent ppt onwards
30,000 tonnes molasses Thailand + Port Louis / UK or Continent ppt onwards
35,000-42,000 tonnes palm oil Straits / Algeciras + Rotterdam + Hamburg early September
35,000-42,000 tonnes palm oil + coconut oil Straits / Brindisi and Ravenna end August- early September
3,000 tonnes palm oil products Straits / east Med August dates
5,000-7,000 tonnes vinasses Vung Tau / UK or Continent ppt onwards
EUROPE / MIDDLE EAST + SOUTH ASIA
FIXTURES:
10,000 tonnes ethylene dichloride Stade / India or East Asia end July- early August RNR
5,000 tonnes ethylene dichloride Tarragona / west coast India 6-10 August $60/tonne
10,000 tonnes pygas Med / Jebel Ali mid-end July $60/tonne
12,000 tonnes methanol Al Jubail / east Med 25-30 July $74/tonne
ENQUIRIES:
6,000 tonnes coal tar Galatz + Taranto / Haldia 5-10 August
1,500 tonnes isopropyl alcohol Rotterdam / Kandla early August
5,000 tonnes lubes Mohammedia / Port Suakin 1-7 August
12,000-18,500 tonnes sunflower seed oil Nikatera + Ilychevsk / Jawaharlal Nehru + Mundra + Kakinada 1-15 August
4,000 tonnes acetic acid + monoethylene glycol Mumbai / Genoa + Antwerp 1-15 August
5,000 tonnes benzene west coast India / Huelva early August
1,000-1,500 tonnes castor oil Kandla / Marseille end August
20,000 tonnes easy chems Bandar Imam Khomeini or Assaluyeh / Constantza early August
4,000 tonnes ethanol Port Sudan / Rotterdam or Ravenna 10-20 August
1,000-2,000 tonnes ethyl acetate Mumbai / Gebze +/or Aliaga ppt
10,000-20,000 tonnes MTBE Middle East Gulf / Continent or Med ppt
4,000 tonnes normal paraffin Al Jubail / Augusta 20-24 August
MISCELLANEOUS
FIXTURES:
5,500 tonnes caustic soda solution Fos / Safi 12 July RNR
4,000-5,000 tonnes caustic soda solution Lavera / west Africa 23-26 July RNR
8,000 tonnes chems Bandar Imam Khomeini / 3 ports west coast India 1-5 August $300,000lps
3,000 tonnes ethyl hexanol Al Jubail / Hong Kong 11-15 July $68/tonne
10,000 tonnes MTBE Jebel Ali / Taiwan 20-25 July $52/tonne
3,000 tonnes MTBE Pyeongtaek / Singapore 15-20 July $36/tonne
5,000 tonnes paraxylene Sriracha / South China 26-30 July $34/tonne
16,000 tonnes ethanol Brazil / US Gulf coast 15-20 July RNR
17,000 tonnes ethanol Houston / North Brazil 20-25 July $53/tonne
12,800 tonnes FAME Argentina / Peru 1H August $79/tonne
15,000 tonnes MTBE Houston / Quintero 20-25 July RNR
31,000 tonnes veg oil Argentina / west coast South America 20-30 July $49/tonne
20,000 tonnes sulphuric acid East Asia / Chile 2H July $78/tonne
18,500 tonnes sulphuric acid Korea / Mejillones 14-20 July RNR
40,000 tonnes veg oil Argentina + Brazil / China 10-20 July $49/tonne
42,000 tonnes veg oil Brazil + Argentina / China 15-20 August $49/tonne
ENQUIRIES:
4,000 tonnes base oil Reni / Lagos August dates
500 tonnes ethanol Rotterdam / Abidjan August dates
12,000 tonnes gasoline Greece / Lagos ppt
7,000-8,000 tonnes lube oils Liepaja / Lagos 14-20 August
2,500 tonnes lubes Dunkerque / Durban 3-18 August
7,000-8,000 tonnes lubes Liepaja / Lagos 8 August onwards
3,000 tonnes molasses Jorf Lasfar / Hull 1-10 August
1,000 tonnes polyols Lavera / Lagos August dates
4,600 tonnes toluene + mixed xylenes Rotterdam / Durban 10-20 August
20,000 tonnes acetic acid + base oil +/or methanol Bandar Imam Khomeini / west coast India mid August
2,000 tonnes acrylonitrile Kandla / Bandar Imam Khomeini 13-16 August
3,000 tonnes benzene Sikka / Shuaiba 4-8 August
9,000 tonnes benzene Sikka / Al Jubail early August
2,000-4,000 tonnes canola oil Jebel Ali / Kandla August dates
3,000-5,000 tonnes canola oil Jebel Ali / Haldia August dates
18,000-20,000 tonnes chems Iran / east coast India 28 August- 5 September
700 tonnes ethanol Karachi / Jebel Ali 3-10 August
5,000 tonnes ethylene dichloride Bandar Imam Khomeini / west coast India 1-5 August
3,300 tonnes fuel oil Bandar Abbas / Fujairah ppt
21,000 tonnes gasoil Ras al-Khaimah / Fujairah ppt
7,000 tonnes marine gasoil Jebel Ali +/or Fujairah / Male 4-6 August
1,500 tonnes naphtha Hamriya / Jebel Ali 5-9 August
1,000 tonnes normal paraffin Al Jubail / Dahej end July
4,000 tonnes palm oil Mangalore or Chennai / Haldia ppt onwards
5,000 tonnes palm olein Kandla / Jawaharlal Nehru ppt
5,000 tonnes paraxylene Bandar Imam Khomeini or Assaluyeh / Haldia end August- early September
12,000 tonnes veg oils Yanbu / west coast India or Iran 20-28 August
2,500 tonnes cyclohexane Dahej / Rayong ppt onwards
2,000 tonnes cyclohexane Dahej / Singapore ppt
1,000 tonnes cyclohexane Kandla / Ulsan ppt
5,000 tonnes ethylene dichloride Karachi / Alexandria or Map Ta Phut or Penang end July- early August
2,700-3,000 tonnes heavy aromatics Kandla / Taizhou ppt onwards
1,000 tonnes linear alkyl benzene Jawaharlal Nehru / Bangkok 3-7 August
2,000 tonnes linear alkyl benzene Jawaharlal Nehru / Ciwandan 13-17 August
3,500 tonnes monoethylene glycol Bandar Imam Khomeini / Zhangjiagang ppt
10,000 tonnes MTBE Mesaieed / Singapore or ARA ppt onwards
3,000 tonnes normal paraffin Bushehr / Merak early August
4,000-6,000 tonnes orthoxylene Kandla / Zhuhai - Zhangjiagang rge 3-6 August
4,000 tonnes orthoxylene Kandla / Gresik end August
5,000 tonnes paraxylene Assaluyeh / East Asia 1H August
5,000 tonnes paraxylene Sikka / Zhuhai - Zhangjiagang rge 4-10 August
10,000 tonnes styrene monomer Assaluyeh / East Asia 16-22 August
3,000 tonnes styrene monomer Kandla / East Asia ppt onwards
4,000 tonnes easy chems Bataan / Kandla or Mumbai 20-25 August
1,000 tonnes methyl ethyl ketone Qingdao / Kandla 20-28 August
1,000 tonnes normal paraffin Ulsan / Kandla 5-10 August
10,000-12,000 tonnes palm oil East Malaysia / east or west coast India August dates
12,000 tonnes palm oil products Belitung + Lubuk Guang / Kandla 1-5 August
4,000-5,000 tonnes palm oil products Bintulu / Pakistan July dates
15,000 tonnes palm oil products Dumai / Kandla 1H August
8,000-10,000 tonnes palm oil products Port Klang / Jawaharlal Nehru or Mumbai early August
7,000-8,000 tonnes palm oil products Straits / 1-2 ports east coast India August dates
15,000 tonnes palm oil products Tarjun +/or Straits +/or Panjang / west coast India August dates
18,000 tonnes sulphuric acid Japan / east coast India 2H August
2,000 tonnes toluene Bataan / Mumbai 21-25 August
12,500 tonnes molasses Thailand / South Korea 1-10 August
10,000 tonnes paraxylene Sikka / Merak +/or Kuantan 10-15 August
2,000 tonnes acetone Mobile / Jiangyin August dates
9,500 tonnes caustic soda solution Dahej / Durban 1H August
30,000-40,000 tonnes coconut + palm oil Straits / USA 20-30 August
2,000 tonnes easy chems Bataan / Mossel Bay 20-30 August
2,000 tonnes ethyl acetate + vinyl acetate monomer Xiao Hu Dao + Singapore / Adabiyah end August
550 tonnes furfural La Romana / Punta Cardon ppt
6,000 tonnes palm olein Abidjan / Port Harcourt ppt onwards
10,000-20,000 tonnes sulphuric acid Kwinana / east coast India or Gresik or Philippines 2H September
20,000 tonnes sulphuric acid Kwinana / Isabel or Gresik 20-31 August
750 tonnes toluene Kandla / Durban ppt
($1 = €0.70)
This week on ICIS ( www.icis.com):
29/07/2011 15:49 Asia ammonia prices rise on limited supply, good demand
28/07/2011 10:10 Palm oil freights rates from southeast Asia to west India on the rise
27/07/2011 05:58 Rising SM prices in Asia open US-China arbitrage
26/07/2011 13:56 Low Europe bitumen prices, costly freight prevent imports from US
22/07/2011 18:58 US phenol producers feeling vindicated for high operating rates
