Tanker News Update 25/6

Uncertainty on the high seas One would say that the forecast is looking patchy with low winds not moving many sails.   The general outlook is a market softening, as a flotilla of vessels are coming off the back of crude floating storage that earned a healthy profit.   This ultimately has led to an …

Steel futures up on mixed Coronavirus news

Iron ore futures extended gains on Wednesday as investors assessed risks from the Coronavirus pandemic.   There are worrying signs that the outbreak has worsened in Brazil, with the nation recently surpassing the mark of one million confirmed cases and 50,000 deaths.   Latest figures showed that Brazil added new deaths, bringing the total to …

Oil off highs on API build, awaiting EIA data

The oil market has continued to come off recent highs after the API predicted a build of 1.7 million bbls for last week.   It did, however, also predict a draw in gasoline and distillate levels. But let’s keep an eye on for later this afternoon when the EIA will confirm the actual stats.   …

Pre-holiday restocking lifts iron ore futures

Iron ore futures moved above $99 on restocking ahead of the Chinese holiday.   It was a busy day for iron ore traders as a flurry of trades were transacted as steel mills look to restock ahead of the Dragonboat festival holiday on Thursday and Friday.   Some trade sources are expecting more spot supply …

What the US takes away, Russia gives back

Prices dropped last night after Peter Navarro told Fox News in an interview that the trade deal with China was ‘over’, linking the breakdown in part to Beijing not sounding the alarm earlier about the outbreak of the Coronavirus.   These worries were calmed by assurances from the President and White House that the agreement …

Futures fall but iron ore supply chain ‘super-stretched’

Iron ore futures fell below $100 on Monday amid a seasonal slowdown in Chinese activities.   According to latest data from Steelhome, Chinese iron ore port stockpiles gained for the first time since April to 108.4 million tonnes (up +0.56% w/w), as Australia and Brazil ramped up its iron ore production. Cargoes shipped via Australia’s …

US rig count falls as Asia refiners stall

Both WTI and Brent crude contracts rose about 9% last week and Brent crude futures have flipped into backwardation, so that oil for immediate delivery costs more than that to be provided later, usually an indication of tightening supply.   In Canada and the United States, the number of operating oil and natural gas rigs …

Iron ore holds at $100 as Brazil supply fears ease

Iron ore futures held at around $100 on Friday as supply concerns eased.   Latest data showed that Brazil’s iron ore exports increased by 1.4 million tonnes during the first nine days of Jun to 1.64 million tonnes per day.   Meanwhile, Vale is gradually resuming operations at its Itabira complex after receiving the green …

ShipShape: The Long and Winding Road

It is one of the best-known Beatles songs from their final studio album Let It Be, but it also encapsulates perfectly the challenge many commodity markets face as they begin to recover from the enormous disruption of Coronavirus.   The pandemic has impacted every metric you can think of: quantitative easing, government debt, unemployment, share …

Iron ore rebound capped on COVID rebound fears

Iron ore futures rebounded on Wednesday but was capped around $101 as investors kept a worried eye over the latest Coronavirus situation in China.   Beijing stepped up its containment efforts following a cluster of new cases in Beijing and triggered a selloff yesterday afternoon as investors were worried of a second wave of cases. …