trend of Chinese steel exports

-

0.5

1.0

1.5

2.0

2.5

-

20

40

60

80

100

120

Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15

iron

ore

po

rt inv. / ste

el p

rod

uctio

n

5-yr a

vera

ge

iro

n

ore

po

rt i

nve

nto

ry

in m

il. t

on

ne

s

5-y

r a

vera

ge

Source: Bloomberg L.P., World Steel Association

(mil. tonnes)

Market insight

By Eva Tzima

Research Analyst

Dry Bulk owners, always look at September as the 0me that the market

“signals” what lies ahead for the remainder of the year. The Chinese iron ore

restocking that tradi0onally picks up during Q4, is currently stealing the

spotlight. The Capesize summer rally proved to be short-lived, with the aver-

age rate for the segment losing most of its gains and se6ling around $8,000/

day. Spot rates have nonetheless increased more than 70% during last week.

Looking at the short term momentum, this appears to be favoring another

boost for the big bulkers. Iron ore stockpiles at Chinese ports are currently

well below the five year average. The 14% drop in imports that took place in

August, has at the same 0me created an addi0onal “gap” to be filled. The

ra0o of the present inventory of iron ore over steel produc0on, which is also

well below the five-year average, points out to a bigger than usual por0on of

iron ore stockpiles being consumed by Chinese mills and turned into steel.

Despite the fact that domes0c steel consump0on has been faltering as of

last year, produc0on has found support in exports, which are up a whopping

27% in the first 8 months of the year. With low inventories of iron ore, steel

produc0on inching up last month, and a very strong trend of steel exports

year to date, everything points out to another round of stockpiling and pos-

sibly another mini Capesize rally in the way, “mini” being the opera0ve word

here.

Although rates appear set to advance further in the following days, I am

skep0c in regards to how long posi0ve momentum can be sustained. The

reality is that despite the decrease in Chinese iron ore produc0on levels,

these are s0ll considerable given the current steel output in the country,

se<ng a limit in imports and consequently the spikes Cape rates enjoy. As

steel producers in China turn to higher quality imported iron ore and local

iron ore producers exit the market amidst low prices, things certainly move

towards the “right” direc0on but we are hardly there yet.

Addi0onally and even most importantly, China remains the top steel con-

suming market worldwide and despite the fact that shipping its steel to India

and other SE Asian countries might be offse<ng part of the gap created by

the domes0c consump0on slowdown, it doesn’t even get close to filling it.

With Chinese steel consump0on and produc0on expected to shiB into an

even lower gear, the amount of iron ore required by Chinese producers

going forward is set to keep less and less dwt busy. Muddy waters for Capes.

Chartering (Wet: Firm + / Dry: Firm + )

The Dry Bulk market gained significant ground supported by Capesize

performance, which resulted in rates for the big bulkers surging during

the second half of the week. The BDI closed today (22/09/2015) at 923

points, down by 55 points compared to Monday’s levels (21/09/2015)

and an increase of 121 points when compared to previous Tuesday’s

closing (15/09/2015). Rates for VLs kept overperforming the crude carri-

ers market, which is con0nuing to enjoy improved sen0ment. The BDTI

Monday (21/09/2015) was at 671 points, an increase of 42 points and

the BCTI at 514, a decrease of 21 points compared to previous Tuesday’s

(14/09/2015) levels.

Sale & Purchase (Wet: So& - / Dry: Stable + )

SnP ac0vity in the tanker sector eased off, while buying interest was for

another week concentrated around MR candidates. At the same 0me

Greek owners con0nued showing interest in second hand Dry Bulk ton-

nage <84,000dwt. On the tanker side, we had the en-bloc sale of the

“CENITO” (53,116dwt-blt 09, China) and the “POSILLIPO” (53,116dwt-blt

10, China) which were sold for a price in the region of $54.0m. On the

dry bulker side, we had the sale of the “MARATHA PROVIDENCE”

(47,574dwt-blt 95, Japan), which was sold to Kuwai0 owners, Jawhrt

Berlin, for a price in the region of $3.8m.

Newbuilding (Wet: Firm + / Dry: Stable - )

Bring on the Tankers! The newbuilding market, which has been witness-

ing unexpectedly high levels of ac0vity in the past couple of months,

was nearly monopolised by tanker orders last week. The tanker bonanza

covered a wide range of sizes, from small bitumen carriers to VLs, while

the presence of crude carriers was definitely standing out in the list of

freshly inked deals. The outstanding volume of this recent ordering,

which coincides with the revival of rates in the crude carriers sector,

reaffirms the faith owners are s0ll placing on the sector, which opposite

to dry bulk seems to have convinced the market of its strong fundamen-

tals. As far as the newbuilding industry is concerned, this recent firming

in ordering is certainly more than welcome, but when it comes to prices

we don’t see yards “experimen0ng” any0me soon with higher levels

even if this trend of strong ordering persists. In terms of recently report-

ed deals Greek owner, Maran Tankers, has placed an order for two firm

Suezmaxes (156,000dwt) at DSME, in S.Korea, with delivery set in 2017.

Demoli,on (Wet: Firm + / Dry: Firm + )

It was refreshing to see a meaningful improvement in the Chinese demo

market last week that was stuck at dismal levels for quite some 0me

now, while following a month of prices advancing in the Indian subcon0-

nent demo market, things quiet down a bit last week in the region. This

hardly affected the number of deals concluded though, with a significant

number of dry deals being reported for scrap in the region. Most no0ce-

ably, vintage Capesize bulkers remained prominent demo candidates

last week, fact which allowed for renewed hopes of an even less con-

gested Capesize market by the end of the year. At the same 0me, the

fact that we are s0ll seeing post 2000 built vessels heading for scrap, is

an obvious sign of how big the will to scrap remains on behalf of some

owners, who are keen to take advantage of the recent improvement in

demo prices, despite the fact that their vessels are not close to what is

tradi0onally considered their scrapping age. Prices this week for wet

tonnage were at around 160-350 $/ldt and dry units received about 140-

330 $/ldt.

Weekly Market Report

Issue: Week 38 | Tuesday 22nd

September 2015

© Intermodal Research 22/09/2015 2

2014 2013

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 63 70,640 48 47,146 49.8% 30,469 21,133

280k MEG-USG 34.5 50,274 27 34,752 44.7% 17,173 7,132

260k WAF-USG 62.5 69,181 55 53,633 29.0% 40,541 26,890

130k MED-MED 62.5 30,365 62.5 30,345 0.1% 30,950 17,714

130k WAF-USAC 62.5 26,507 57.5 20,404 29.9% 24,835 13,756

130k BSEA-MED 65 35,470 65 35,551 -0.2% 30,950 17,714

80k MEG-EAST 87.5 31,118 95 29,445 5.7% 19,956 11,945

80k MED-MED 72.5 20,524 75 21,924 -6.4% 28,344 13,622

80k UKC-UKC 85 20,811 95 27,770 -25.1% 33,573 18,604

70k CARIBS-USG 110 31,639 102.5 28,460 11.2% 25,747 16,381

75k MEG-JAPAN 82 27,346 92.5 31,845 -14.1% 16,797 12,011

55k MEG-JAPAN 103.5 23,939 115 27,502 -13.0% 14,461 12,117

37K UKC-USAC 100 14,779 110 16,676 -11.4% 10,689 11,048

30K MED-MED 135 17,818 135 17,832 -0.1% 18,707 17,645

55K UKC-USG 87.5 17,361 85 16,474 5.4% 23,723 14,941

55K MED-USG 87.5 16,502 85 15,848 4.1% 21,089 12,642

50k CARIBS-USAC 85 13,369 85 13,182 1.4% 25,521 15,083

Dir

tyA

fram

axC

lean

VLC

CS

ue

zmax

Spot Rates

Vessel Routes

Week 38 Week 37$/day

±%

Sep-15 Aug-15 ±% 2014 2013 2012

300KT DH 83.0 84.0 -1.2% 73.6 56.2 62.9

150KT DH 61.0 61.0 0.0% 50.2 40.1 44.9

110KT DH 45.5 46.0 -1.1% 38.6 29.2 31.2

75KT DH 37.5 37.0 1.4% 32.8 28.0 26.7

52KT DH 28.2 28.0 0.6% 27.2 24.7 24.6

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

The crude carriers market con0nued to gain momentum during last week

with sen0ment finding further support in the performance of the VL seg-

ment, which once more displayed great strength. As we move closer to the

end of September it seems that the market is gaining back its strength,

shaking off doubts in regards to how strong are the fundamentals presently

driving the crude trade. With all eyes already on the upcoming winter sea-

son, the market seems set for a strong quarter, one that is expected to

allow rates regain the highs witnessed a few months ago, while we expect

period enquiry to also pick up further in the following weeks.

Rates for Vls rose substan0ally supported by strong enquiry throughout the

week in both the Middle East and West Africa regions. Market talk at the

moment reveals op0mism that a Q4 rally might be on the way, an expecta-

0on strongly suggested by forward month enquiries as well.

The West Africa Suezmax finally managed to correct upwards last week on

the back of an excep0onally busy market in the region, while the Med mar-

ket was overall stable.

Rates for Aframaxes at the same 0me moved sideways as increased supply

of tonnage pushed ideas down in the Med, while on the other hand things

in the Caribs kept improving, with owners comfortably holding the upper

hand .

Sale & Purchase

In the MR sector, we had the sale of the “STI HIGHLANDER” (37,145dwt-blt

07, S. Korea) which was sold to Danish owners, Norden, for a price in the

region of $19.5m.

In the same sector we had the en-bloc sale of the “CENITO” (53,116dwt-blt

09, China) and the “POSILLIPO” (53,116dwt-blt 10, China) which were sold

for a price in the region of $54.0m.

Wet Market

Indicative Period Charters

-6 mos - 'ALTER EGO' 2001 309,400 dwt

- - $37,500/day - Koch

-9 mos - 'AMORE MIO II' 2001 160,000 dwt

- - $33,750/day - Shell

20

70

120

170

220

WS

po

ints

DIRTY - WS RATESTD3 TD4 TD6 TD9

Week 38 Week 37 ±% Diff 2014 2013

300k 1yr TC 45,000 45,000 0.0% 0 28,346 20,087

300k 3yr TC 42,500 42,500 0.0% 0 30,383 23,594

150k 1yr TC 36,000 36,000 0.0% 0 22,942 16,264

150k 3yr TC 33,500 33,500 0.0% 0 24,613 18,296

110k 1yr TC 29,000 29,000 0.0% 0 17,769 13,534

110k 3yr TC 25,000 25,000 0.0% 0 19,229 15,248

75k 1yr TC 27,000 27,000 0.0% 0 16,135 15,221

75k 3yr TC 22,500 22,500 0.0% 0 16,666 15,729

52k 1yr TC 19,250 19,000 1.3% 250 14,889 14,591

52k 3yr TC 17,500 17,250 1.4% 250 15,604 15,263

36k 1yr TC 17,500 17,500 0.0% 0 14,024 13,298

36k 3yr TC 16,250 16,250 0.0% 0 14,878 13,907

Panamax

MR

Handy

TC Rates

$/day

VLCC

Suezmax

Aframax

60

90

120

150

180

210

240

270

WS

po

ints

CLEAN - WS RATESTC1 TC2 TC5 TC6

© Intermodal Research 22/09/2015 3

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000$

/da

y

Average T/C Rates

AVR 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI

Chartering

You can always count on Capes to shake the en0re Dry Bulk market and

last week was one of those that leaves everyone with a smile...well almost

everyone that is. Despite the fact that the BDI jumped over 17% in just one

week, the board was split, with the geared sizes “denying” any posi0ve

spillovers from the bigger size segments, while paper values for the forward

month moved upwards last week for the en0re market. At the same 0me,

period business was steady, with those charterers that were ac0ve, enquir-

ing longer periods than what we have been seeing lately.

Rates for Capes spiked last week, with firm enquiry ex both Brazil and W.

Australia sending rates through the roof. We expect the segment to con0n-

ue finding support in the next few days, while the paper market suggests

rates in excess of $15,000/day for both the forward month and the forward

quarter contract. Hopes that a further improvement of rates will also in-

spire stronger and longer period business that will 0e up more spot ton-

nage and allow addi0onal balance in the market have also started building

up following last week, but whether this will be the case is too soon to tell.

Strong period enquiry as well as the stellar performance of the Capesize

segment, mainly supported rates for Panamaxes last week, while the fact

that spot business in the Atlan0c was mainly posi0onal, denied the market

a clear direc0on together with a more meaningful improvement of rates in

the region.

The Atlan0c Handy/Handymax/Supramax market is s0ll wai0ng for the USG

grains to start breathing life into rates but it seems that traders are holding

back for now, while Pacific business remained rather una6rac0ve for yet

another week, with an obvious lack of steel and mineral shipments..

Sale & Purchase

In the Kamsarmax sector, we had the sale of the “TIARE” (83,688dwt-blt 09,

Japan), which was reported being sold to Greek owners, for a price of

$17.7m.

In the Handymax sector we had the sale of the “MARATHA PROVIDENCE”

(47,574dwt-blt 95, Japan), which was sold to Kuwai0 owners, Jawhrt Berlin,

for a price in the region of $3.8m.

Sep-15 Aug-15 ±% 2014 2013 2012

180k 35.0 34.4 1.8% 47.3 35.8 34.6

76K 18.0 18.0 0.0% 24.5 21.3 22.7

56k 15.5 15.0 3.3% 24.7 21.5 23.0

30K 13.0 13.0 0.0% 19.5 18.2 18.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 3 to 6 mos - 'KONSTANTINOS II' 2013 81,698 dwt

- CJK 16/18 Sep - $ 7,500/day - ADMI

- 10 to 12 mos - 'STAR IRIS' 2004 76,466 dwt

- Tianjin 13/15 Sep - $ 7,500/day - cnr

Dry Market

Index $/day Index $/day Index Index

BDI 960 818 142 1,097 1,205

BCI 1,995 $14,658 1,198 $8,614 797 70.2% 1,943 2,106

BPI 753 $6,035 735 $5,878 18 2.7% 960 1,186

BSI 762 $7,972 810 $8,473 -48 -5.9% 937 983

BHSI 426 $6,150 460 $6,679 -34 -7.9% 522 562

11/09/2015

Baltic IndicesWeek 38

18/09/2015

Week 37Point

Diff

2014 2013$/day

±%

180K 6mnt TC 14,500 10,500 38.1% 4,000 22,020 17,625

180K 1yr TC 11,250 10,750 4.7% 500 21,921 15,959

180K 3yr TC 11,250 11,250 0.0% 0 21,097 16,599

76K 6mnt TC 8,250 8,250 0.0% 0 12,300 12,224

76K 1yr TC 8,250 8,250 0.0% 0 12,259 10,300

76K 3yr TC 8,500 8,500 0.0% 0 13,244 10,317

55K 6mnt TC 8,750 9,250 -5.4% -500 12,008 11,565

55K 1yr TC 8,250 8,250 0.0% 0 11,589 10,234

55K 3yr TC 8,000 8,000 0.0% 0 11,585 10,482

30K 6mnt TC 6,500 6,750 -3.7% -250 9,113 8,244

30K 1yr TC 6,750 6,750 0.0% 0 9,226 8,309

30K 3yr TC 7,000 7,000 0.0% 0 9,541 8,926Han

dys

ize

Period

2013

Pa

na

ma

xS

up

ram

ax

Week

38

Week

37

Cap

esi

ze

2014$/day ±% Diff

© Intermodal Research 22/09/2015 4

Secondhand Sales

Size Name Dwt Built Yard M/E SS due Hull Price Buyers Comments

MR CENITO 53,116 2009 Zhao, China Warts i la Nov-19 DH

MR POSILLIPO 53,116 2010 Zhao, China Warts i la Jan-20 DH

MR STI HIGHLANDER 37,145 2007HYUNDAI MIPO

DOCKYARD, S. KoreaMAN-B&W Jan-17 DH $ 19.5m Danis h (Norden)

PROD/

CHEMYELLOW RAY 19,937 2003

USUKI SHIPYARD,

JapanB&W Jun-18 DH undisclos ed

Vietnames e

(TPL)

undisclos eden-bloc

$ 54.0m

Tankers

Size Name Dwt Built Yard M/E SS due Gear Price Buyers Comments

KMAX TIARE 83,688 2009 SANOYAS, Japan MAN-B&W Apr-19 $ 17.7m Greek

PMAXLAN HAI ZHAO

YANG79,659 2011

NANJING

WUJIAZUI SHIPB,

China

MAN-B&W Oct-16 $ 10.0m

PMAXLAN HAI YANG

GUANG79,412 2011

NANJING

WUJIAZUI SHIPB,

China

MAN-B&W Dec-16 $ 10.0m

PMAX LAN HAI XU RI 79,366 2011

NANJING

WUJIAZUI SHIPB,

China

MAN-B&W Dec-16 $ 10.0m

SMAXLAN HAI DONG

FENG57,190 2010

YANGFAN GROUP

CO LTD, ChinaMAN-B&W Nov-15 $ 5.6m

SMAXLAN HAI YANG

FAN57,155 2010

YANGFAN GROUP

CO LTD, ChinaMAN-B&W Dec-15 $ 5.6m

SMAX LAN HAI QIAN JIN 57,000 2011YANGFAN GROUP

CO LTD, ChinaMAN-B&W Jun-16

4 X 30t

CRANES$ 9.0m

SMAXLAN HAI YING

XIN57,000 2011

YANGFAN GROUP

CO LTD, ChinaMAN-B&W Sep-16

4 X 30t

CRANES$ 9.0m

SMAX LAN HAI LIAN HE 57,000 2011YANGFAN GROUP

CO LTD, ChinaMAN-B&W Aug-16

4 X 30t

CRANES$ 8.9m

PMAX EASTERN VIEW 73,350 1995HYUNDAI HEAVY

INDS - U, S. KoreaB&W Jan-20

4 X 25t

CRANES$ 5.0m Middle Eastern

PMAXNEWLEAD

MARKELA71,749 1990

HITACHI ZOSEN -

MAIZUR, JapanB&W Jul-19 $ 3.2m Dubai based

HMAXMARATHA

PROVIDENCE47,574 1995

OSHIMA

SHIPBUILDING,

Ja pan

Sulzer Feb-204 X 25t

CRANES$ 3.8m

Kuwai ti (Jawhrt

Berl in)

at auctionGreek (Sea Traders )

Bulk Carriers

© Intermodal Research 22/09/2015 5

Secondhand Sales

Size Name Teu Built Yard M/E SS due Gear Price Buyers Comments

FEEDER SKY EVOLUTION 1,032 1996IMABARI

IMABARI, JapanB&W Oct-16 $ 4.0m

S. Korean (CK

Line)

FEEDER JORK RANGER 803 2005

DAMEN

HOOGEZAND,

Netherlands

MaK Oct-15 $ 5.0m undisclosed

FEEDER STAR JUPITER 735 2002SIETAS KG,

GermanyMaK Sep-17 $ 3.6m

German

(Conmar

Shipping)

at auction

Containers

Type Name Dwt Built Yard M/E SS due Cbm Price Buyers Comments

LPG B GAS LANRICK 3,620 1992RICHARDS

LOWESTOFT, U. K.Warts i la May-17 3,215 $ 1.5m

Peruvian

(Transgas

Shipping Lines)

Gas/LPG/LNG

© Intermodal Research 22/09/2015 6

Bring on the Tankers! The newbuilding market, which has been witnessing

unexpectedly high levels of ac0vity in the past couple of months, was nearly

monopolised by tanker orders last week. The tanker bonanza covered a wide

range of sizes, from small bitumen carriers to VLs, while the presence of

crude carriers was definitely standing out in the list of freshly inked deals.

The outstanding volume of this recent ordering, which coincides with the

revival of rates in the crude carriers sector, reaffirms the faith owners are s0ll

placing on the sector, which opposite to dry bulk seems to have convinced

the market of its strong fundamentals. As far as the newbuilding industry is

concerned, this recent firming in ordering is certainly more than welcome,

but when it comes to prices we don’t see yards “experimen0ng” any0me

soon with higher levels even if this trend of strong ordering persists.

In terms of recently reported deals Greek owner, Maran Tankers, has placed

an order for two firm Suezmaxes (156,000dwt) at DSME, in S.Korea, with

delivery set in 2017.

Newbuilding Market

20

60

100

140

180

mil

lio

n $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

38

Week

37±% 2014 2013 2012

Capesize 180k 48.0 48.0 0.0% 55.8 49 47

Kamsarmax 82k 26.5 26.5 0.0% 30.4 27 28

Panamax 77k 26.0 26.0 0.0% 29.2 26 27

Ultramax 63k 24.5 24.5 0.0% 27 25 25

Handysize 38k 20.5 20.5 0.0% 23 21 22

VLCC 300k 94.5 94.5 0.0% 98.6 91 96

Suezmax 160k 64.5 64.5 0.0% 65 56 58

Aframax 115k 53.0 53.0 0.0% 54 48 50

LR1 75k 46.0 46.0 0.0% 45.9 41 42

MR 50k 35.5 35.5 0.0% 36.9 34 34

190.0 190.0 0.0% 186.0 185 186

77.0 77.0 0.0% 78.4 71 71

68.0 68.0 0.0% 66.9 63 62

45.5 45.5 0.0% 44.3 41 44

LNG 160k cbm

LGC LPG 80k cbm

MGC LPG 55k cbm

SGC LPG 25k cbm

Gas

Bu

lke

rsTa

nke

rs

Vessel

Indicative Newbuilding Prices (million$)

10

30

50

70

90

110m

illi

on

$

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

1 Tanker 319,000 dwtDalian Shipbuilding,

China2018 Chinese (Dal ian Ocean) undisclosed

option, total 3 on

order

1 Tanker 319,000 dwt DACKS, China 2018 Chinese (Dal ian Ocean) undisclosedoption, total 4 on

order

2 Tanker 158,600 dwtHyundai Samho, S.

Korea2017 Greek (Thenamaris) $ 65.0m total 3 on order

2+2 Tanker 158,000 dwt Hyundai, S. Korea 2017 Turkish (Gungen) $ 65.0m

2 Tanker 156,000 dwt DSME, S. Korea 2017 Greek (Maran Tankers) $ 63.0m

2 Tanker 111,000 dwt New Times, China 2017 Norwegian (Frontline2012) $ 48.0m LR2, options

2 Tanker 74,000 dwt Hyundai Mipo, S.Korea 2018 S.Korean (Sinokor) $ 46.0m LR1

2 Tanker 49,800 dwt Onomichi, Japan 2018USA based (Fairfield-

Maxwell)undisclosed

older deal surfacing

now

2 Tanker 49,800 dwt Onomichi, Japan 2018 Japanese (Marubeni) undisclosedolder deal surfacing

now

2 Tanker 7,500 dwt CSC Qinshan, China 2017Hong Kong based (Xin Yuan

Ocean Shpg.)undisclosed

asphalt/bitumen

carriers

8 Container 1,400 teu Taizhou Kouan, China 2017-2018 German (Harren & Partner) $ 24.0m

2+2 Gas 78,700 cbm Hyundai H.I., S.Korea 2017Bermuda registered

(Petredec)$ 75.5m LPG

1 Ro-Pax 800 pax Huanghai, China 2017 Chinese (Shandong Bohai) $ 41.9m plus 460 teu

Newbuilding Orders Size

© Intermodal Research 22/09/2015 7

It was refreshing to see a meaningful improvement in the Chinese demo

market last week that was stuck at dismal levels for quite some 0me now,

while following a month of prices advancing in the Indian subcon0nent demo

market, things quiet down a bit last week in the region. This hardly affected

the number of deals concluded though, with a significant number of dry

deals being reported for scrap in the region. Most no0ceably, vintage

Capesize bulkers remained prominent demo candidates last week, fact which

allowed for renewed hopes of an even less congested Capesize market by the

end of the year. At the same 0me, the fact that we are s0ll seeing post 2000

built vessels heading for scrap, is an obvious sign of how big the will to scrap

remains on behalf of some owners, who are keen to take advantage of the

recent improvement in demo prices, despite the fact that their vessels are

not close to what is tradi0onally considered their scrapping age. Prices this

week for wet tonnage were at around 160-350 $/ldt and dry units received

about 140-330 $/ldt.

The highest price amongst recently reported deals, was that paid by Bangla-

deshi breakers for the Container vessel “APL GARNET” (66,618dwt-21,468ldt-

blt 95), which received $368/ldt including 150T ROB.

Demoli,on Market

Week

38

Week

37±% 2014 2013 2012

Bangladesh 335 330 1.5% 469 422 441

India 350 350 0.0% 478 426 445

Pakistan 340 340 0.0% 471 423 444

China 160 145 10.3% 313 365 384

Bangladesh 305 300 1.7% 451 402 415

India 330 330 0.0% 459 405 419

Pakistan 310 310 0.0% 449 401 416

China 140 125 12.0% 297 350 365

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

120

220

320

420

520

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

50

150

250

350

450

550

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

AQUAGRACE 167,105 22,092 1997HALLA ENG & HI -

SAMHO, S. KoreaBULKER $ 334/Ldt undisclosed as-is Singapore

APL GARNET 66,618 21,468 1995SAMSUNG HEAVY

INDUSTRI, S. KoreaCONT $ 368/Ldt Bangladeshi incl. 150T ROB

EVER RESULT 58,912 19,924 1995MITSUBISHI KOBE,

JapanCONT $ 352/Ldt undisclosed as-is Thailand

DUNFENG MANILA 154,249 19,822 1994NAMURA IMARI,

JapanBULKER $ 330/Ldt Pakistani

TSUNOMINE 156,818 19,701 2000TSUNEISHI SHBLDG -

TAD, JapanBULKER $ 340/Ldt Indian green recycling

ARCA EMERALD 13,208 10,743 1984TSUNEISHI SHBLDG -

FUK, JapanRORO $ 357/Ldt undisclosed option Indian subcontinent

Demolition Sales

The informa0on contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such informa0on to be factual and reliable without mak-

ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the produc0on of the above review, no liability can be accepted for any loss or damage incurred in any way

whatsoever by any person who may seek to rely on the informa0on and views contained in this material. This report is being produced for the internal use of the intended recipients only and no re-

producing is allowed, without the prior wri6en authoriza0on of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valua0ons Department | research@intermodal.gr

Ms. Eva Tzima | e.tzima@intermodal.gr

Mr. Vassilis Logothe0s | v.logothe0s@intermodal.gr

Finance News

“More Maersk US bonds

AP Moller Maersk has returned to the US bond mar-

ket for the second 0me in a li6le over a year to raise

$1bn.

The Danish giant has launched and priced a $500m

five year bond due in September 2020 and a $500m

ten-year bond due in September 2025.

The bonds carry coupons of 2.875% and 3.875% re-

spec0vely. The net proceeds will be used for general

corporate purposes.

The transac0on is AP Moller Mærsk’s second USD

bond offering and both tranches are expected to be

rated BBB+ by S&P and Baa1 by Moody’s.

Underwriters for the latest issue were BNP PARIBAS,

BofA Merrill Lynch, Credit Agricole CIB, Deutsche

Bank Securi0es and JP Morgan.

In September 2014 it launched a $750m four year

bond due in September 2019 and a $500m ten-year

bond due in September 2024 with coupons of 2.55%

and 3.75% respec0vely.” (Dale Wainwright, Trade

Winds)

Commodi,es & Ship Finance

18-Sep-15 17-Sep-15 16-Sep-15 15-Sep-15 14-Sep-15W-O-W

Change %

10year US Bond 2.130 2.210 2.300 2.280 2.180 -3.2%

S&P 500 1,958.03 1,990.20 1,995.31 1,978.09 1,953.03 -0.2%

Nasdaq 4,827.23 4,893.95 4,889.24 4,860.52 4,805.76 0.1%

Dow Jones 16,384.58 16,674.74 16,739.95 16,599.85 16,370.96 -0.3%

FTSE 100 6,104.11 6,186.99 6,229.21 6,137.60 6,084.59 -0.2%

FTSE All-Share UK 3,365.68 3,405.53 3,424.54 3,380.92 3,356.57 -0.2%

CAC40 4,535.85 4,655.14 4,645.84 4,569.37 4,518.15 -0.3%

Xetra Dax 9,916.16 10,229.58 10,227.21 10,188.13 10,131.74 -2.1%

Nikkei 18,070.21 18,432.27 18,171.60 18,026.48 17,965.70 0.6%

Hang Seng 21,920.83 21,854.63 21,966.66 21,455.23 21,561.90 1.9%

DJ US Maritime 222.85 228.00 231.22 226.30 221.08 -1.0%

$ / € 1.13 1.14 1.13 1.13 1.13 -0.2%

$ / ₤ 1.55 1.56 1.55 1.53 1.54 0.7%

¥ / $ 119.58 120.09 120.54 120.43 120.37 -0.8%

$ / NoK 0.12 0.12 0.12 0.12 0.12 -0.2%

Yuan / $ 6.37 6.36 6.37 6.37 6.37 -0.1%

Won / $ 1,173.30 1,166.70 1,171.00 1,178.90 1,182.60 -0.8%

$ INDEX 87.91 87.49 87.98 88.33 88.19 -0.4%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

an

ge

Da

ta

1,000

1,050

1,100

1,150

35

40

45

50

55

60

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

18-Sep-15 11-Sep-15W-O-W

Change %

Rotterdam 439.5 441.0 -0.3%

Houston 481.0 475.5 1.2%

Singapore 438.5 440.0 -0.3%

Rotterdam 221.5 224.5 -1.3%

Houston 220.0 224.0 -1.8%

Singapore 237.5 229.5 3.5%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 18-Sep-15 11-Sep-15

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 6.83 7.43 -8.1%

BOX SHIPS INC NYSE USD 0.63 0.59 6.8%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 7.11 6.66 6.8%

COSTAMARE INC NYSE USD 14.75 14.63 0.8%

DANAOS CORPORATION NYSE USD 6.01 6.10 -1.5%

DIANA SHIPPING NYSE USD 6.81 6.18 10.2%

DRYSHIPS INC NASDAQ USD 0.23 0.23 0.0%

EAGLE BULK SHIPPING NASDAQ USD 7.46 6.66 12.0%

EUROSEAS LTD. NASDAQ USD 4.45 4.43 0.5%

FREESEAS INC NASDAQ USD 0.29 0.29 0.0%

GLOBUS MARITIME LIMITED NASDAQ USD 1.12 1.33 -15.8%

GOLDENPORT HOLDINGS INC LONDON GBX 99.95 120.25 -16.9%

HELLENIC CARRIERS LIMITED LONDON GBX 19.00 19.00 0.0%

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.92 3.74 4.8%

NAVIOS MARITIME HOLDINGS NYSE USD 2.82 2.63 7.2%

NAVIOS MARITIME PARTNERS LP NYSE USD 8.40 8.70 -3.4%

PARAGON SHIPPING INC. NYSE USD 0.36 0.36 0.0%

SAFE BULKERS INC NYSE USD 3.25 3.14 3.5%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 0.78 0.74 5.4%

STAR BULK CARRIERS CORP NASDAQ USD 2.38 2.26 5.3%

STEALTHGAS INC NASDAQ USD 4.39 4.41 -0.5%

TSAKOS ENERGY NAVIGATION NYSE USD 8.81 8.00 10.1%

TOP SHIPS INC NASDAQ USD 1.02 1.07 -4.7%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

22/09/2015

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