Cement News tagged under: petcoke

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Supramax rates fell significantly on all routes amid slow start to the year

23 February 2024, Published under Cement News

By Brannvoll ApS, Denmark The year started on a negative note for Supramax owners in USG. Rates were rapidly falling amid a lack of cargoes and a growing tonnage supply. Closer to the end of the month, the negative trend took a hold and freight rates stabilised thanks to more grains and petcoke offers on fronthaul routes. Freight rates for transportation of a Supramax-lot of petcoke from Houston to ARA ports with spot laycans are at US$21/t on average. Deals for delivery of 50,000t of ...

Politics dominates the energy market, oil stabilises but coal drifts lower while petcoke rises on lower freight rates

20 February 2024, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark   The oil price remains subject to a risk premium due to the Israel-Gaza conflict. Providing the situation does not escalate, the market hovers around US$80. Meanwhile, the Ukraine-Russia war is still deadlocked, but the political stage in Europe and potential US election is lurking, making negotiations more likely. In the financial markets both the European Central Bank and the US Federal Reserve have kept rates unchanged and have a two pe...

FOB discounts fall while ARA discounts return to neutral

29 January 2024, Published under Cement News

Coal fell sharply below US$100, due to weak demand and large stocks, on 22 January 2024, while oil hovered around the US$80/bbl mark as freight issues in the Suez Canal and the Red Sea supported oil prices. Petcoke FOB contracts recovered from December lows as demand forecast for 1Q24 and 2Q24 shows an upward trend and discounts were increasing until weaker coal prices emerged. Discounts on FOB contracts declined and ARA discounts returned to neutral from an earlier spell in the cheap zone...

Energy complex continued lower with petcoke seeing new lows and higher discounts

23 January 2024, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark The energy complex fell further in December but recovered by the end of 2023. In geopolitical terms, the Israel-Gaza conflict has seen increased risk of spreading and ship attacks in the Red Sea from Houthi terrorists in Yemen increased risk for oil and good shipping. A western UN-backed naval force has put an ultimatum and when attacks stop this would take some support away. The Ukraine-Russia war remains largely frozen, but hints of so...

High volatility in USG Supramax/Ultramax markets

22 January 2024, Published under Cement News

By Brannvoll ApS, Denmark The first half of the month went very well for the Supramax/Ultramax owners in USG. The market was strong with levels increasing considerably as demand remained healthy for December dates and there was minimal tonnage supply to handle an increasing volume of cargo requirements. Nevertheless, closer to the end of the month, the USG market started getting softer due to limited fresh demand being introduced. Amid the upcoming holidays most requirements with spot ...

FOB discounts decrease but ARA discounts up

29 December 2023, Published under Cement News

Coal, along with oil fell to US$100 on 21 December 2023, and OPEC+ introduced new cuts to support oil at US$75-80. However, oil rose due to naval attacks in the Red Sea and trouble in the Suez Canal. Petcoke FOB contracts collapsed as freight rallied making CFR prices expensive.There was also a lack of interest from far destinations. The discount on FOB contracts increased but fell on ARA contracts. Petcoke discount falls (21 December 2023) Petcoke with 6.5 per cent S is exp...

USG Supramax market skyrocketing as demand/supply plays in owners’ favour and congestion impacts Panama Canal

27 December 2023, Published under Cement News

By Brannvoll ApS, Denmark USG Supramax/Ultramax market remained healthy during the month with rates rising above previous issue’s levels as tonnage for November dates appeared tight, while demand remained healthy. The strong segment in this area resulted in vessels ballasting from across the basin. Rates considerably increased throughout the month for all directions. There is a further increase in downtimes passing the Panama Canal. Market players increasingly prefer shipments via the ...

Oil pressures energy complex lower despite OPEC+ cuts while petcoke collapses, offering new high discounts towards coal

22 December 2023, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark The energy complex fell in November, with oil leading the way. The Israel-Gaza war continued but still without any contagion – and no war premium. Ukraine-Russia war is frozen literally, and some hints of possible talks are emerging to the upcoming Russian election. The US Federal Reserve and European Central Bank have both hinted in speeches that interest rates need to be high but not higher, which has given a relief rally in the financia...

Coal drops and petcoke-coal discounts fall

20 December 2023, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark The price of coal declined after the Israel-Gaza war premium was taken out and oil also moved down. Petcoke saw downward pressure by coal with discounts falling. As a result, discounts on both FOB and ARA contracts are now in the lower part of the neutral range.  Petcoke with 6.5 per cent S is expected to continue in the US$80-95 range with resistance at US$95, US$105, US$115 and US$135. Support is at US$80, US$68 and US$55 with multi-year...

Energy complex lower on fading war premium while petcoke discounts fall as coal retraces

28 November 2023, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark The Israel-Gaza situation seems to be contained from spreading and the war premium has quickly faded as no disruptions in any markets have been seen. The focus has now shifted back to demand and supply. The two major central banks kept their rates unchanged in the October meetings,  keeping to the “higher for longer” rhetoric with inflation still too high for both the US and EU central banks. China’s growth, particularly in the property market...