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Editor Desmond Chia, desmond.chia@icis.com
FREIGHT RATE ASSESSMENT – BASED ON 2,000 MT EASY CHEMS ON FIXED ROUTE, SHOWING PRESENT SPOT MARKET RATES, CHANGES AND TRENDS. THIS RATE REFLECTS PROMPT SHIPMENT IN USD/MT.
SINGAPORE BANGKOK $21-24 ( ) STABLE
JAKARTA $27-29 ( ) STABLE
KOREA TAIWAN $25-26 ( ) STABLE
SHANGHAI $23-25 ( ) STABLE S’PORE $33-35 ( ) STABLE
BANGKOK $33-35 ( ) STABLE
FREIGHT RATE ASSESSMENT – BASED ON 6,000 MT EASY CHEMS ON FIXED ROUTE, PROMPT SHIPMENT IN USD/MT
AL JUBAIL SINGAPORE $44-46 ( ) STABLE
BANGKOK $48-50 ( ) STABLE
NOTE: For full details on the criteria ICIS pricing uses in making these price assessments visit www.icispricing.com and click on “methodology”.
Northeast Asia: Chinese demand for petrochemicals remained weak, with shipping brokers reporting no clear pick up in sight. The lull was likely to continue further in October, as the Chinese will be in the midst of holiday celebrations early next month. Chinese demand tend to ebb during festivities as buyers keep out of the market.
Mid last month, increasing healthy demand from Chinese buyers had led to a scramble for tonnage space, which encouraged shipowners to hold onto and increase freight rates. But now, such expectations had dissipated. Although bunker prices were still high at $430/tonne levels, shipowners had been unable to pass the increased costs to the market.
A Korean broker lamented that shipowners were now under the mercy of charterers, who control the freight rates. He added that there were still many partially open prompt positions. Another broker concurred, adding that there is a lot of space for destinations in the North.
Another Persian Gulf veteran broker added that tonnage space was everywhere for grabs. But the Persian Gulf looked promising as players reported movements of methanol. A 10,000 tonne cargo was fixed from Al Jubail to west coast of India over first half of September and another similar parcel from Iran to northeast Asia in the low $30s/tonne. A total 15,000-25,000 tonnes of methanol had also been fixed from Iran to European destinations.
Indian refiner continued to be in the market, chartering tonnage to send parcels of benzene and LAB up to Europe. 8,000 tonnes of BTX had also been fixed from India to northwest Europe at $38-39/tonne, whilst a 7,000 tonne cargo of MTBE was bound for Singapore over second half of September from the Middle East.
Industry players were heartened by this increased movements, but the supply of tonnage still outweighed the demand. A seasoned broker was sceptical whether these fixtures had been confirmed and unsure of the identities of these buyers.
Expectations of Kuwait starting to export aromatics from their new plant in Shuiba in the third quarter of this year could fail to materialize. Shipping players had been waiting impatiently for the start-up which meant more movements and increased demand for vessels in the Persian Gulf to east bound destinations.
The rate at which newly-builts were released into the market had slowed down for the time being, as shipowners had deferred taking deliveries of these new vessels until the markets show signs of recovering. This had the intended effect of steming the further slide in freight rates by reining in the build up in supply glut of tonnage.
Rates for 2,000 tonne easy chemicals within Asia were stable, with the voyage between Korea-Singapore pegged at $33-35/tonne and $33-35/tonne for the Korea-Bangkok journey. Rates for the Korea to Taiwan route were at $25-26/tonne and $23-25/tonne between Korea-Shanghai.
For rates of 3,000 tonne vessels to China, the journey from Korea to mid-China were at $18-19/tonne, and $19-20/tonne for the Taiwan-mid-China voyage.
Southeast Asia: Unlike its Northern counterpart, tonnage in southeast Asia had been tightening. A seasoned broker said space had been pretty tight in the region as the overall demand was getting healthier. Hence, sources said there are very few idled vessels in the region.
A source noted that most of the requirements were based on contracts rather than spot nominations, with chemical parcels mainly consisting of aromatics and methanol. However, the increased demand had failed to pull up freight rates, sources lamented.
Rates for 2,000 tonne easy chemicals in the region, the journey between Singapore-Bangkok were pegged steady at $21-24/tonne and $27-29/tonne for the voyage between Singapore and Jakarta.
Rates for 3,000 tonne cargoes were largely unchanged at $34-36/tonne from Singapore to mid-China.
Rates for 6,000 tonne chemical cargoes from Al Jubail to Singapore were also stable at $44-46/tonne and $48-50/tonne for the Al Jubail to Bangkok journey.
Palm Oil (CPO): The strong Asian demand seen earlier last month had tapered off. Industry sources said healthy buying interest from Chinese buyers had dissipated, after snapping up large volumes of soybean from South America. Local domestic harvests also contributed to the stockpile. Furthermore, the end of the mid-Autumn festivals had led to further decreased demand. Hence, there is not much room for CPO imports.
The Indian side also exhibited similarities, after Indian buyers had snapped up 750,000 tonnes of the commodity last month. A veteran source said everyone is taking a breather first before evaluating and commiting to new nominations. Indian buyers had stockpiled large volumes ahead of the Dewali celebrations, which will be ending mid-October.
With the second wave of the monsoon season on track with rains reported all over the country which are better than anticipated earlier on, a source noted that this would keep a lid on bulls pushing up CPO prices. Higher prices deter buyers in general. Rains normally would lead to better harvests in terms of increased oil contents.
Demand from Pakistan buyers remained buoyant due to the Ramadhan celebrations. Sources said end-users were still forth coming in their purchases, with players reporting good demand on average.
The earlier strong demand from Asian buyers had soaked up all available tonnage. But sources said the situation could either flip or maintain. A source noted that the supply issue is subjective. He explained that there are still currently some shipowners who are demanding higher freight rates and refusing to settle for current rates, which had seen marked spikes since last year’s record lows.
These shipowners were optimistic that rates would continue its upward climb. The source was, however sceptical that this promising scenario would unfold anytime.
Another seasoned source concurred, noting that the market would fall back after the festivities had ended next month, and forcing shipowners back to the reality of falling freight rates. He added that this had always been the usual trend. As a result, both sources expected to see some idled vessels seeking for cargoes soon.
There had also been some buying activites from European buyers, with a large parcel 35,500 tonnes heading for Germany from the Straits over 10-20 October.
Freight rates intra-Asia remained stable this week. Rates to west coast India and Pakistan were maintained at $24-25/tonne for 12,000 tonne cargoes and $20-21/tonne to the east coast.
Rates to Chinese destinations were also kept unchanged, with rates for 10,000-15,000 tonne cargoes from the Straits-mid China pegged at $23-25/tonne and $26-27/tonne for the journey to North China. Rates for the voyage to South China were stable at $19-20/tonne.
Demand for substitutes had also dipped as Asian buyers had earlier covered their requirements with CPO. Chinese buyers snapped up to 42,000 tonnes of vegetable oil in October; whilst Indian buyers bought 10,000 tonnes from Ukraine. The latter would also be sending 15,000 tonnes to buyers in Iran.
+++ INTRA-NORTHEAST ASIA +++
FIXTURES:
N/A
ENQUIRIES:
1000KL BASEOIL CHIBA/ULSAN 24-26/SEPT
1000KL BASEOIL CHIBA/YOSU 5-7/OCT
2000MT SM UBE/ZHENJIANG 20-22/SEPT - MA X5000DWT
2000MT SM MIZUSHIMA/NINGBO 26-29/SEPT
3000MT SM OITA/ANPING 24-26/SEPT - MAX 3700DWT
2000MT TOLUENE ONSAN/JIANGYIN 23-25/SEPT
1400MT SOLVENT ULSAN/DALIAN 17-25/SEPT
2000+1000MT MX ULSAN/NANTONG END SEPT/ELY OCT
5000MT PX KOREA/ZHUHAI 2H/SEPT - BP APRVL
1000MT DMF LANSHAN/INCHON 18-22/SEPT
500MT BAC JIANGYIN/INCHON 20-30/SEPT
1000MT AN KAOHSIUNG OR ANPING/LIANYUNGANG 15-25/SEPT
800MT 1.4BD KAOHSIUNG/XIAOHUDAO 28 SEPT/5 OCT
800MT BDO KAOHSIUNG/XIAOHUDAO 28 SEPT/5 OCT
3000MT XYLENE YOKKAICHI/QINGDAO 5-9/OCT - SHELL APRVL
3000MT SM MIZUSHIMA/NINGBO OR ZJG 15-19/SEPT
5000MT XYLENE ULSAN/TAIWAN 10-12/SEPT - KBP APRVL
250MT N.HEXANE ULSAN/ANYER 1-5/OCT
1000MT ANYSOL 150 ULSAN/YIZHENG 15-20/SEPT
9000MT C.SODA LONGKOU/ULSAN+ONSAN 10-15/SEPT
1000MT ANILINE OIL NANTONG/YOSU 10-16/OCT
2100-2300MT CMS TAICHUNG/INCHON 27 SEPT/2 OCT
1000MT EDC MAILIAO/DONGGUAN 16-30/SEPT
9000MT SM 2G MAILIAO/NINGBO 21-24/SEPT
3000MT MEG MAILIAO/NINGBO 10-18/SEPT
3000MT ACETIC ACID MAILIAO/NINGBO 9-12/OCT - MAX 5000DWT
1000MT AN ANPING/LIANYUNGANG 15-25/SEPT
1000MT C-HEXANONE KAOHISUNG/ULSAN 10-15/SEPT
5000MT XYLENE KAOHSIUNG/XIAMEN 20-25/SEPT
+++INTRA-SOUTHEAST ASIA+++
FIXTURES:
N/A
ENQUIRIES
N/A
+++NORTHEAST ASIA / SOUTHEAST ASIA +++
FIXTURES:
N/A
ENQUIRIES:
6000MT BENZENE DALIAN/SINGAPORE END/SEPT
500MT E.ACETATE + 300MT B.ACETATE JIANGYIN/BANGKOK MID/OCT
14000 OR 17000MT CPP 2G KOREA/SINGAPORE 23-25/SEPT
500MT EAC + 200MT BAC JIANGYIN/MAPTAPHUT 20-30/SEPT
250/500MT EAC + 250/500MT BAC JIANGYIN/HCM END/SEPT - MAX 5000DWT
8500MT CPP INT. GASOIL MAILIAO/JAKARTA 15-17/SEPT
3/4000MT C.SODA MAILIAO/P.KLANG ELY/OCT
+++SOUTHEAST ASIA / NORTHEAST ASIA +++
FIXTURES:
N/A
ENQUIRIES:
1000MT BASEOIL 150BS SRIRACHA/YINGKOU OR TIANJING 20-25/SEPT
8-12000MT MOLASSES SURABAYA/VUNGTAU SEPT
8-12000MT MOLASSES INDONESIA/S.KOREA 19-24/OCT
3000MT C-HEXANE MAPTAPHUT/TAIWAN 16-21/SEPT
1000MT VAM SINGAPAORE/DONGGUAN 13-15/SEPT - CDI
+++EAST ASIA/WEST ASIA +++
FIXTURES:
N/A
ENQUIRIES:
1000MT PHENOL + 500MT ACETONE MAPTAPHUT/BUDGE BUDGE SEPT
2000MT GASOIL TUBAN/KANDLA-MUMBAI 20-30/SEPT
2-3000MT SM DAESAN/VIZAG 1-10/OCT
+++WEST ASIA/EAST ASIA +++
FIXTURES:
N/A
ENQUIRIES:
10000MT NAPHTHA CHITTAGONG/DAESAN MID/OCT
10000MT PX SIKKA/MERAK-KUANTAN 16-22/SEPT
1200MT C-HEXANE DAHEJ/SHEKOU 15-18/SEPT
+++INTRA WEST ASIA +++
FIXTURES:
N/A
ENQUIRIES:
4500MT TOLUENE BIK/WC INDIA 2H/SEPT
+++MISCELLANEOUS+++
FIXTURES:
N/A
ENQUIRIES:
5/7000MT VINASSES TAICHUNG/UK-CONT SEPT/OCT
1700MT PALM METHYL ESTER P.GUDANG/ARA OR USGULF SEPT
2000MT MEG MUMBAI/GENOA 2H/SEPT
5/12000MT MOLASSES 1-2 EC AFRICA/UK-CONT 2H SEPT/ELY OCT
2500MT BASEOIL ALEXANDRIA/MUMBAI 14-24/SEPT
2/2300MT BASEOIL LEIXOES OR ALGECIRAS/SWAKIN 15-25/SEPT
2/2800MT BASEOIL 2G MED/CHITTAGONG 12-28/SEPT
5000MT PX KOTKA/WILMINGTON 28 SEPT/5 OCT
2000MT OX RDAM/HOUSTON 28 SEPT/5 OCT
15000bbls CPP INT. GASOLINE HSTON/1-2 CHILE 9-10/SEPT - ENAP
3000MT SBO PARANAGUA/DAKAR END SEPT/ELY OCT
5/10000MT SBO PARANAGUA/DUBAI AND-OR B.ABBAS OCT
2500MT EZ CHEM 2G JIANGYIN 2B/GEBZE 2B 14/SEPT ONWARD
35500MT POP 2P STRAITS/HAMBURG 10-20/OCT
1500MT ETHYL ACETATE MUMBAI/GENOA 1-15/OCT
1000MT ETHYL ACETATE MUMBAI/BARCELONA 1-15/OCT
10000MT VEGOIL ILICHEVSK/WC INDIA 10-20/OCT
15000MT VEGOIL ILICHEVSK/IRAN 10-20/OCT
2700-2800MT SOLVENTS 2G THESSALONIKI/GEBZE 14-16/SEPT
3000MT CRUDE BENZENE ISDEMIR/KOREA 2H/SEPT
2000MT LUBES C.MED/RED SEA MID/SEPT
2400-2500MT BTX 3G ALGECIRAS/GEBZE 15/SEPT ON
3000MT CPP SG 0.81 DUNKIRK/AMSTERDAM 9/SEPT ON
10000MT EDC + 2-3000MT PCE 2G STADE/FREEPORT 16-20/SEPT
8000CBM ETHANOL SANTOS/WC INDIA OCT
38-42000MT VEGOIL ARG+BRAZIL/CHINA OCT
PURCHASE ENQ.
- 5/6000DWT CHEMICAL TANKER - STST TANKS
AGE MAX 10 YEARS DELIVERY WITHIN 2009
- ABOUT 10,000DWT CHEM TANKER, DOUBLE/DOUBLE BLT 1998-2001
PROMPT CHARTER FREE DELIVERY
- DOUBLE HULL PORODUCT TANKER - BLT 2000-2004
TANK CAPACITY 17500CBM, MAX LOA 150M
- PRODUCT TANKER - MIN 20000CBM, LOA MAX 160M
BUILT 1982 ONWARDS, 1990 ONWARD
- 4990DWT(BELOW 5000DWT) PRODUCT TANKER
BUILT 1996 ONWARD
- ABT 30000DWT PRODUCT TANKER, BLT 1999-2003
CHARTER FREE DELIVERY
T/C ENQ.
- 12/17000DWT PRODUCT TANKER
3/3/3 MONTHS T/C - TRADING CPP UNL AG-RES SEA RANGE
DELIVERY RED SEA PROMPT ONWARD
- 2/3000DWT D/H TANKER
1+1 YEAR T/C - TRADING POP IN S.E.ASIA
DELIVERY S.E.ASIA DECEMBER 2009
This week in ICIS news ( www.icis.com):
08-Sep-09 10:31 Japan may increase PE, PP exports in Q4 – industry sources
08-Sep-09 10:14 Maruzen restarts Chiba HDA benzene unit on domestic demand
08-Sep-09 10:07 Japan August loan growth slows to 1.8%; July CA surplus shrinks
08-Sep-09 09:44 China’s Huaxiang Chlor-Alkali starts trial runs at ECH plant
08-Sep-09 07:40 Taiwan’s CPDC sets ACN plant maintenance shutdown in Oct
