The View From 80 Cannon Street

The key movements and news of the markets followed by us at Freight Investor Services

Dry Freight

C5TC Sep 24 opened on Monday 9th September at $28,500 and continued to drop over the course of the week, reaching $26,750 on Friday. On the Panamax front, P4TC Sep 24 remained basically unchanged during the week, as it opened at $11,900 on Monday and is $100 lower on Friday. Looking at the smaller ships, S10TC Sep 24 opened the week lower at $13,975, and hit an intraweek high of $14,300 on Wednesday, before moderating the gains at $14,050 on Friday.

?

Iron Ore

Iron ore corrected by 4.89% over the past week. The major correction was connected to the overall drop in global equity and commodity markets. Iron ore saw decreasing demand in September in comparison to the same period over the past three years. Risk appetite is waning as market participants are concerned about a potential recession in the US. The annual Chinese PPI in August was down 1.82%, the 23rd consecutive drop, indicating an overall weakness of industrial demand for the world’s largest consumer of iron ore.

?

Fuel Oil

This week, the front month Brent crude future has fallen below the $70/bbl mark for the first time since December 2021. Bearish factors come from a risk of oil market surplus as well as a weak demand outlook for the world’s largest oil importer – China.? Initial worries came from the approaching plan for OPEC to trickle more crude supply back into the market from Q4 onwards. Another constant behind the recent weakness is poor data out of the US and China, indicating a softer demand outlook for the two oil giants. The Sing Hi-5 Sep 24 has declined from the highs of Thursday 5th September, when it reached $155.75, opening this week at $138.25. The fuel oil lowered further at $115.25 on Tuesday, regaining some ground at $128.25 on Friday.

?

Fertilizers

NOLA had a quiet start of the week, with no trades reported on Monday, and September urea barges traded at $311 and $313.? On Tuesday, the market observed the developments of the storm Francine approaching Louisiana, and September Urea barges stayed in the $311-$315 range. Wednesday saw NOLA Q125 urea futures traded at $314 for 1.5ktpm. In the international market, a $357 sale for Egypt gran urea Sept loading for 10kt was reported and in turn pushed Egypt Oct futures bids up. Thursday saw a September urea futures traded at $315 for 1.5kt.

?

Containers

In the last week, FBX03 was the only route to increase in spot price, up $416 to $9493. This could be seen as a result of the upcoming port worker strike on the US East Coast in October. Consequently, it could see diversions to the West Coast and therefore influence those rates in the coming days. FBX13 was the biggest faller of the week, down $75 to $5839 continuing its slide since the peak in July.

?

Please contact us on [email protected] or via our website contact form for more information about our freight and commodity derivatives offering. ?

?

Edited by: Christopher Hudson , Davide Annarumma , Jessica Free

?

The information provided in this communication is not intended for retail clients. It is general in nature only and does not constitute advice or an offer to sell, or the solicitation of an offer to purchase any swap or other financial instruments, nor constitute any recommendation on our part. The information has been prepared without considering your investment objectives, financial situation, or knowledge and experience. This material is not a research report and is not intended as such. FIS is not responsible for any trading decisions taken based on this communication. Trading swaps and over-the-counter derivatives, exchange-traded derivatives, and options involve substantial risk and are not suitable for all investors. You are advised to perform an independent investigation to determine whether a transaction is suitable for you. No part of this material may be copied or duplicated in any form by any means or redistributed without our prior written consent. Freight Investor Services Ltd (FIS) is authorised and regulated by the Financial Conduct Authority (FRN: 211452) and is a member of the National Futures Association (“NFA”). Freight Investor Services PTE Ltd ('FIS PTE') is a private limited company, incorporated and registered in Singapore with company number 200603922G, and has subsidiary offices in India and Shanghai. Freight Investor Solutions DMCC ('FIS DMCC') is a private limited company, incorporated and registered in Dubai with company number DMCC1225. Further information about FIS including the location of its offices can be found on our website at freightinvestorservices.com

?