BANCOSTA Weekly Market Report...Imports from Russia also increased by +9% year-on-year to 3.7 mln tonnes, edging above Canada. ... from the 179.3 mln tonnes of 2017. One main trend

weeklymarketreport

Week 16/2020 (13 Apr – 17 Apr)

Comment: Japan’s coal imports in 1Q 2020

29

7

3 3 3

1 1

28

7

3 3

10

1

27

8

4 4

1 0 1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Australia Indonesia Canada Russia USA Colombia Others

mln

to

nn

es

Japan - Quarterly Coal Imports by Source in Jan-Mar(apr 2020 ; source: refinitiv ; seaborne only ; in mln tonnes)

2018 (1-3) 2019 (1-3) 2020 (1-3)

113

29

12 138

2 2

112

26

14 138

2 2

104

25

16 14

61 3

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Australia Indonesia Canada Russia USA Colombia Others

mln

to

nn

es

Japan - Annual Coal Imports by Source in Jan-Dec(jan 2020 ; source: refinitiv ; seaborne only ; in mln tonnes)

2017 (1-12) 2018 (1-12) 2019 (1-12)

COMMENT MARKET REPORT – WEEK 48/2019 2COMMENT 2

JAPAN’S COAL IMPORTS IN 1Q 2020

MARKET REPORT – WEEK 16/2020

Coal trade in Asia is provingremarkably resilient this year,despite the global economic impactfrom COVID-19.

We have seen China’s coal importssurge by +14.1% year-on-year inthe first quarter of this year. Wehave also seen India’s coal importssimilarly surge by +7.1% year-on-year in the same period.

Japan is another country which hasincreased its imports of coal thisyear, albeit perhaps not by thesame magnitude as those othertwo countries.

In the first 3 months of 2020, Japanimported 44.8 mln tonnes of coal,according to vessel tracking datafrom Refinitiv.

This represents a net increase of+3.4% y-o-y, compared to the 43.3mln tonnes imported in the samethree-month period of 2019, butdown -3.4% from the 46.3 mlntonnes imported in 1Q 2018.

On a single-month basis, Januaryshowed a +6.0% year-on-yearincrease to 15.7 mln tonnes, whilstFebruary showed a +4.4% increaseyear-on-year to 14.3 mln tonnes,and March recorded a -0.2% year-on-year decline to 14.7 mln tonnes.

In April 2020 we could see arrivalsas high as 15.2 mln tonnes, basedon vessel tracking ETAs. This would

be significantly higher than the low13.1 mln tonnes of April 2019.

Actual arrivals in the first 14 daysApril 2020 reached 6.8 mln tonnes.

Of the arrivals in 1Q 2020, at least18.0 mln tonnes were coking coal,and at least 23.6 mln tonnes werethermal coal, with 3.1 mln tonnesof unknown grade.

Coal imports to Japan arepredominantly from Australia,which also this year accounts for61% of Japan’s total.

There have been some interestingshifts in trade patterns however.

Shipments from Australia to Japanhave been down by -1.5% y-o-y in1Q 2020, to 27.3 mln tonnes, from27.7 mln tonnes in the same periodlast year.

Volumes from Indonesia to Japan,on the other hand, increasedsharply by +27.0% y-o-y to 8.3 mlntonnes, from 6.5 mln tonnes in 1Q2019. Indonesia now accounts for19% of Japan’s total coal imports.

Japan also boosted imports fromCanada, which went up by +12.3%y-o-y to 3.5 mln tonnes in 1Q 2020.

Imports from Russia also increasedby +9% year-on-year to 3.7 mlntonnes, edging above Canada.

Imports from the USA continued todecline. Japan imported only 0.9

mln tonnes from the USA in thefirst quarter of 2020, down -46.3%year-on-year. This is also two-thirds down from the 2.5 mlntonnes recorded two years ago.

We should keep in mind howeverthat all this is a rebound from arelatively poor 2019, and indeedfrom a negative trend seen alreadyfor a number of years.

Looking back at last year, Japan’stotal imports reached 169.2 mlntonnes in the 12 months of 2019.

This represents a decline of -4.5%y-o-y, compared to the 177.2 mlntonnes imported in the whole of2018.

This in turn was a -1.2% declinefrom the 179.3 mln tonnes of2017.

One main trend seen in the pastfew years was towardsdiversification of suppliers.

During the whole of 2019, importsfrom Australia to Japan declined by-7.2% y-o-y to 104.3 mln tonnes.

Imports from Indonesia declined by-4.6% y-o-y in the whole of 2019 to25.0 mln tonnes.

On the other hand, shipments fromCanada increased by +13.5% y-o-yto 15.6 mln tonnes, and fromRussia by +13.2% y-o-y to 14.4 mlntonnes.

0

4,000

8,000

12,000

16,000

20,000

17/4/19 17/8/19 17/12/19 17/4/20

BPI 82 TC and Kamsarmax 1-YR Period (usd/day)

1-YR TC BPI TC

Unit 17-Apr 10-Apr W-o-W Y-o-Y

BPI 74 TC Avg. usd/day 6,093 5,979 +1.9% -34.4%

BPI 82 TC Avg. usd/day 7,429 7,315 +1.6% -31.6%

P1_82 Transatlantic r/v usd/day 4,960 4,553 +8.9% -56.3%

P2_82 Skaw-Gib Trip F. East usd/day 14,490 14,314 +1.2% -21.1%

P3_82 Pacific r/v usd/day 7,238 7,251 -0.2% -19.6%

1 Yr TC Period Panamax usd/day 9,750 9,750 +0.0% -11.4%

1 Yr TC Period Kamsarmax usd/day 11,000 11,000 +0.0% -6.4%

0

7,000

14,000

21,000

28,000

35,000

42,000

17/4/19 17/8/19 17/12/19 17/4/20

BCI TC and Capesize 1-YR Period (usd/day)

1-YR TC BCI TC


BCI TC Avg. usd/day 9,875 6,762 +46.0% +49.1%

C8 Transatlantic r/v usd/day 10,075 5,615 +79.4% +42.7%

C14 China-Brazil r/v usd/day 10,986 7,918 +38.7% +57.8%

C10 Pacific r/v usd/day 8,500 6,758 +25.8% +38.3%

1 Year TC Period usd/day 14,500 13,750 +5.5% +3.6%

The market kept recovering: 5TCaverage gained $3,000/d closing onFriday at $9,850/d.Tubarao-Qingdao route increasedquite a lot gaining $1/mt: it closedat very low $12/mt for early Maydates while at high $12/mt for endMay dates, due to many players inthe market looking for ships.Saldanha Bay-Qingdao followedthe same path gaining more than$1/mt and reaching low $9/mtlevel. W Australia-Qingdao route

was a bit under pressure but ratesincreased from Wednesday andclosed on Friday at $4.95/mt,gaining basically $0.30/mt. WAustralia-Qingdao route followedTubarao-Qingdao trend: biggervolumes in the market and moreCapesize units looking at Braziliancargoes pushed rates up on WAustralia-Qingdao.On the Atlantic side, the marketwas pushing: some fixturesbrought Bolivar-Rotterdam and

TransAtlantic RV respectively atlow $6/mt and at $10,000/d, aftergaining $1/mt and $5,000/d.Fronthaul followed a similar trendand closed on Friday at very high$21,000/d, after earning almost$1,500/d. Rates on short periodimproved in the low teens, due toa better FFA market.

CHARTERING 3

DRY CARGOCAPESIZE MARKET

PANAMAX MARKETThe week began sluggish after theEaster holidays, even if some dealswere concluded.The index was positive in thePacific basin and also rates from SAmerica appeared robust for earlyMay dates. The market in NAtlantic seemed to be firmer, butthe main driver was still S America.As the week progressed activityslowed, which was surprising, butto be expected as the OrthodoxEaster approached. Meanwhile, NAtlantic fixing lacked any real

substance and largely concentratedon short Baltic trips whichappeared popular for some short-term coverage whilst rates fromSouth America appeared a ticksofter. Demand and ratesappeared steady for bigger shipsfrom E Australia and NoPac.Towards the end of the week, theAtlantic gained a little butappeared to only show Baltic orfronthaul fixtures including NCSAmwhich was pushing up a bit with alack of committed tonnage. In Asia,

despite the steady numbers forNoPac grain trips, rates softened inorder to get cover.A 81,000 dwt with dely retroHaldia was fixed a tick under$10,000/d for a trip with redelySpore/Japan range, while a 82,000dwt with dely Spore was fixed inthe high $10,000/d for a trip via SAmerica with redely F East.Another 82,000 dwt was fixed at$13,000/d + 300,000 bb basis delyaps ECSAm, for a trip with redelySpore/Japan range.


The activity was stable in Cont bothon Handysize and on Supramaxsegments: anyway, rates keptdropping and were still weakercompared to previous week.At the beginning of the week a39,000 dwt was fixed at $5,500/dbasis dely Cont for a trip to ECSAm.At the end of the week a nice35,000 dwt was rumoured at$4,900/d basis dely Cont for a tripto ECSAm, while charterersevaluated the same unit around$4,000/d.

In the Supramax segment, a 56,000dwt Chinese type was fixed around$5,500/d basis dely dop Cont for atrip via Baltic to E Med with scrapcargo.The market in BSea/Med waspretty much unchanged: lack ofdemand, plenty of uncertainty anda long position list. TC rates werestill on a slide, voyage rates werehit by low bunker prices. OrthodoxEaster will probably affect activitylevels, but not enough to lead to asurge next weeks.

The Supramax and Ultramaxsegments showed a similar trendof previous week with still no signsof recovery expected: there was alack of activity (or a very limitedone) which was neutralized by thelong position list reported in thearea.On TransAtlantic RV Supramaxunits were still in the $4/5,000/dwhile Ultramax were fixed around$6,000/d. On Fronthaul, rates onSupramax decreased to $10,000/dand on Ultramax were rumoured atvery low teens.A negative trend was reported inthe Handysize segment: a bit more

activity was recorded but theposition list kept being on the longside.On TransAtlantic RV, 32/35,000dwt units were rumoured at$6,000/d while larger 36/39,000dwt were in the $8,000/d.The market in ECSAm was still infirm decrease: very few cargoes forprompt dates kept maintainingrates low. Rates for trip toContMed went further down:38,000 dwt units went from$6,500/d to $5,500/d.Trips to F East were still rumouredaround $10,000/d: no fixtureswere reported on Handies on this

route. Rates on Brazilian coastaltrips were fixed around$4/4,500/d. Supramax andUltramax segments followed asimilar trend and rates keptdecreasing: rates on Supramaxwent from $7,500/d to $5,500/dfor trips to ContMed, while rateson Ultramax decreased from$8,000/d to $6,500/d for the sametrips. Rates on trips to F Eastdecreased too: on Ultramax rateswent from $11,500/d + 150,000 bbto low $11,000/d + 120,000 bb,while on Supramax rates wentfrom $11,250/d + 125,000 bb to$11,000/d + 100,000 bb.

CHARTERING 4

SUPRAMAX & HANDYSIZE MARKET

US ATLANTIC SOUTH AMERICA

N EUROPE MEDITERRANEAN

INDIA S AFRICA

The market remained flatcompared to previous week withsimilar rates. From MEG to ECISupramax units were fixed around$5/5,500/d basis dely aps, a tickless with WCI redely. Ultramaxunits were fixed closer to $6,000/dfrom WCI to F East withsulphur/salt cargoes. From ECIwere reported some iron orecargoes to China direction, but

rates remained on the downwardtrend sliding around $500/d to$2,500/3,000/d. A dolphin 57,000dwt was fixed around $3,000/dbasis dely ECI to China with ironore cargo.Few period rates were alsodiscussed in the area: a 56,000 dwtwas rumoured to be fixed aroundnot more than $8,000/d for 5/7months.

From SAfr rates remained flat forcoal cargoes both to MEG/Indiarange and to SE Asia. A Supramaxopen in Sri Lanka was rumoured at$4,000/d basis dely dop for SAfrcoal to India, while an Ultramaxwas heard to be fixed (and thenfailed) at mid $8,000/d + 85,000 bbfor SAfr coal to SE Asia.


0

3,000

6,000

9,000

12,000

17/4/19 17/8/19 17/12/19 17/4/20

BHSI 28 TC and Handysize 1-YR Period (usd/day)

1-YR TC BHSI TC

0

4,000

8,000

12,000

16,000

17/4/19 17/8/19 17/12/19 17/4/20

BSI TC and Supramax 1-YR Period (usd/day)

1-YR TC BSI TC

HANDYSIZE Unit 17-Apr 10-Apr W-o-W Y-o-Y

BHSI_28 TC Avg. usd/day 2,992 3,543 -15.6% -49.0%

BHSI_38 TC Avg. usd/day 4,958 5,509 -10.0% -36.6%

HS2_38 Skaw/Pass-US usd/day 5,536 6,282 -11.9% -7.6%

HS3_38 ECSAm-Skaw/Pass usd/day 6,189 6,667 -7.2% -50.6%

HS4_38 USG-Skaw/Pass usd/day 6,325 7,113 -11.1% -6.5%

HS5_38 SE Asia-Spore/Japan usd/day 4,150 4,573 -9.2% -49.5%

HS6_38 Pacific RV usd/day 4,188 4,588 -8.7% -46.0%

1 Year TC Period 32,000 dwt usd/day 6,000 6,000 +0.0% -31.4%

1 Year TC Period 38,000 dwt usd/day 7,000 7,000 +0.0% n.a.

SUPRAMAX Unit 17-Apr 10-Apr W-o-W Y-o-Y

BSI TC Avg. usd/day 4,449 4,852 -8.3% -45.7%

S4A_58 USG-Skaw/Pass usd/day 4,684 5,378 -12.9% -61.6%

S1C_58 USG-China/S Jpn usd/day 11,683 12,950 -9.8% -31.9%

S9_58 WAF-ECSA-Med usd/day 3,904 4,229 -7.7% -54.2%

S1B_58 Canakkale-FEast usd/day 11,554 12,696 -9.0% -7.2%

S2_58 N China Aus/Pac RV usd/day 4,879 4,993 -2.3% -35.3%

S10_58 S China-Indo RV usd/day 2,528 2,894 -12.6% -65.2%

1 Year TC Period Supramax usd/day 7,500 7,500 +0.0% -28.6%

1 Year TC Period Ultramax usd/day 9,500 9,500 +0.0% -17.4%

CHARTERING 5

SUPRAMAX & HANDYSIZE MARKET

FAR EAST PACIFIC

The market in F East keptmaintaining a negative trend:indices showed a decrease ofaround $300/400/d both onSupramax/Ultramax and onHandysize segments.A bit more activity was reportedcompared to previous week: a56,000 dwt with dely S China wasfixed at $3,000/d for a trip viaVietnam to N China with clinker

cargo, while a smaller Supramaxwith dely Indonesia was rumouredat $4,400/d for a trip with thesame direction.A 56,000 dwt with dely Philippineswas fixed at $5,000/d for a trip viaW Australia to Spore/Japan rangewith sugar and a similar unit withdely S China was fixed at $1,000/dless for the same trip.A 57,000 dwt with dely Indonesia

was reported at $3,500/d for a tripto Thailand, while a 56,000 dwtwith dely Vietnam was rumouredat $1,000/d for a trip via Indonesiato Vietnam.No fixtures were reported in theHandysize segment, like previousweek.


0

3,000

6,000

9,000

12,000

Apr-19 Apr-20 Apr-21 Apr-22 Apr-23

Handysize Forward Curve (usd/day)

0

4,000

8,000

12,000

16,000


Supramax Forward Curve (usd/day)

0

5,000

10,000

15,000

20,000


Panamax Forward Curve (usd/day)

0

9,000

18,000

27,000

36,000

45,000


Capesize Forward Curve (usd/day)

CAPESIZE Unit 17-Apr 10-Apr W-o-WPremium/

Discount

Apr (20) usd/day 8,447 8,031 +5.2% -14.5%

May (20) usd/day 11,503 10,903 +5.5% +16.5%

Jun (20) usd/day 12,944 12,556 +3.1% +31.1%

Q2 (20) usd/day 10,965 10,497 +4.5% +11.0%

Q3 (20) usd/day 13,369 13,500 -1.0% +35.4%

Q4 (20) usd/day 14,416 14,481 -0.4% +46.0%

Q1 (21) usd/day 9,119 9,309 -2.0% -7.7%

Cal 21 usd/day 12,578 12,699 -1.0% +27.4%

Cal 22 usd/day 13,191 13,175 +0.1% +33.6%

Apr (20) usd/day 7,395 7,886 -6.2% -0.5%

May (20) usd/day 8,380 9,274 -9.6% +12.8%

Jun (20) usd/day 9,170 10,011 -8.4% +23.4%

Q2 (20) usd/day 8,315 9,057 -8.2% +11.9%

Q3 (20) usd/day 10,242 10,708 -4.4% +37.9%

Q4 (20) usd/day 10,661 10,889 -2.1% +43.5%

Q1 (21) usd/day 9,492 9,658 -1.7% +27.8%

Cal 21 usd/day 10,382 10,500 -1.1% +39.7%

Cal 22 usd/day 10,145 10,255 -1.1% +36.6%

Apr (20) usd/day 5,000 5,314 -5.9% +12.4%

May (20) usd/day 5,575 6,571 -15.2% +25.3%

Jun (20) usd/day 6,761 7,504 -9.9% +52.0%

Q2 (20) usd/day 5,779 6,463 -10.6% +29.9%

Q3 (20) usd/day 8,093 8,539 -5.2% +81.9%

Q4 (20) usd/day 8,604 8,968 -4.1% +93.4%

Q1 (21) usd/day 7,557 7,825 -3.4% +69.9%

Cal 21 usd/day 8,964 9,075 -1.2% +101.5%

Cal 22 usd/day 8,743 8,782 -0.4% +96.5%

Apr (20) usd/day 6,304 6,429 -1.9% +27.1%

May (20) usd/day 6,916 7,116 -2.8% +39.5%

Jun (20) usd/day 7,560 7,572 -0.2% +52.5%

Q2 (20) usd/day 6,927 7,039 -1.6% +39.7%

Q3 (20) usd/day 8,741 8,766 -0.3% +76.3%

Q4 (20) usd/day 8,991 8,991 +0.0% +81.3%

Q1 (21) usd/day 8,016 8,004 +0.1% +61.7%

Cal 21 usd/day 8,779 8,772 +0.1% +77.1%

Cal 22 usd/day 8,679 8,679 +0.0% +75.1%

HANDYSIZE (38k)

SUPRAMAX (58k)

PANAMAX (82k)

CHARTERING 6

DRY BULK FFAS (Baltic Forward Assessments)


10,000

25,000

40,000

55,000

70,000

85,000

Apr-19 Jul-19 Oct-19 Jan-20 Apr-20

1 YR TC Period (usd/day)

VLCC Suezmax Aframax

-5,000

10,000

25,000

40,000

55,000

70,000

17/4/19 17/8/19 17/12/19 17/4/20

TD19 Aframax Med-Med (usd/day)

0

25,000

50,000

75,000

100,000

125,000

150,000

17/4/19 17/8/19 17/12/19 17/4/20

TD6 Suexmax BSea-Med (usd/day)

0

60,000

120,000

180,000

240,000

300,000

360,000

17/4/19 17/8/19 17/12/19 17/4/20

TD3C VLCC MEG-Far East (usd/day)VLCC Unit 17-Apr 10-Apr W-o-W Y-o-Y

TD1 MEG-USG ws 92.14 97.05 -5.1% +340.7%

TD1 MEG-USG usd/day 112,543 118,808 -5.3% +1518%

TD2 MEG-Spore ws 154.00 158.75 -3.0% +248.0%

TD3C MEG-China ws 150.42 155.21 -3.1% +245.2%

TD3C MEG-China usd/day 165,605 170,626 -2.9% +1106.1%

TD15 WAF-China ws 137.08 142.92 -4.1% +200.4%

Avg. VLCC TCE usd/day 139,074 144,717 -3.9% +4699.0%


SUEZMAX TD6 BSea-Med ws 139.33 126.11 +10.5% +51.5%

TD6 BSea-Med usd/day 73,653 62,910 +17.1% +261.1%

TD20 WAF-Cont ws 132.05 124.09 +6.4% +86.2%

MEG-EAST ws 150.00 175.00 -14.3% +128.6%

TD23 MEG-Med ws 113.57 104.29 +8.9% +297.4%

Avg. Suezmax TCE usd/day 71,213 62,948 +13.1% +308.3%


AFRAMAX TD7 NSea-Cont ws 163.75 127.50 +28.4% +77.6%

TD7 NSea-Cont usd/day 64,503 39,240 +64.4% +1268.0%

TD17 Baltic-UKC ws 141.25 106.88 +32.2% +83.0%

TD17 Baltic-UKC usd/day 63,957 41,366 +54.6% +479.1%

TD19 Med-Med ws 108.63 101.25 +7.3% +40.2%

TD19 Med-Med usd/day 29,724 25,357 +17.2% +1165.4%

TD8 Kuwait-China ws 133.89 145.28 -7.8% +30.3%

TD8 Kuwait-China usd/day 36,844 40,566 -9.2% +264.7%

TD9 Caribs-USG ws 125.00 103.75 +20.5% +60.6%

TD9 Caribs-USG usd/day 29,622 20,864 +42.0% +3963.4%

Avg. Aframax TCE usd/day 44,273 35,626 +24.3% +544.5%


CRUDE OIL TANKER MARKET

CHARTERING 7

TANKER

In the VLCC segment activity wasslower compared to previousweek: 280,000 mt cargoes onMEG-USG route assessed in thevery low nineties. In the Suezmaxsegment rates were mostly steady:130,000 mt cargoes on WAfr-Europe and 135,000 mt cargoes onBSea-Med routes were still aroundWS130. On Basrah-Med routerates were rumoured first around

140@100 and then around afirmer 140@115 (that failed onsubs). Med-East route went up abit: Ceyan-Ningbo deals werereported on subs around $5.9 mln.Very busy week on period: Vitolalone fixed 4 units for 6 months at$55,000/d. In the Aframaxsegment rates shot up in NWEurope: around 20 units were onsubs just in one day with rates

rumoured up to 80@160 from NSea and around 80@140 fromBaltic. The market in Med was busyas well: a nice deal from Sidi Kerirto Trieste was fixed at 100@85 onFriday. The market was firm alsofrom USG: 70,000 mt cargoes toEurope were fixed at WS110 levelwhile rates on routes to the Eastwere steady.



Northbound days 3.0 3.0 +0.0% +50.0%

Southbound days 3.0 3.0 +0.0% +50.0%


TC1 MEG-Japan ( 7 5 k ) ws 245.00 201.56 +21.6% +162.6%

TC1 MEG-Japan ( 7 5 k ) usd/day 75,988 60,151 +26.3% +608.4%

TC8 MEG-UKC ( 6 5 k ) usd/mt 54.46 46.38 +17.4% +132.2%

TC5 MEG-Japan ( 5 5 k ) ws 237.50 214.67 +10.6% +163.9%

TC5 MEG-Japan ( 5 5 k ) usd/day 52,797 46,576 +13.4% +754.5%

TC2 Cont-USAC ( 3 7 k ) ws 174.44 134.44 +29.8% +21.0%

TC2 Cont-USAC ( 3 7 k ) usd/day 25,173 17,008 +48.0% +124.6%

TC14 USG-Cont ( 3 8 k ) ws 109.29 87.14 +25.4% +44.4%

TC14 USG-Cont ( 3 8 k ) usd/day 13,786 8,851 +55.8% +2624.9%

TC9 Baltic-UKC ( 2 2 k ) ws 147.14 135.71 +8.4% -12.3%

TC6 Med-Med ( 3 0 k ) ws 253.44 196.44 +29.0% +57.2%

TC7 Spore-ECAu ( 3 0 k ) ws 193.33 188.50 +2.6% +10.5%

TC7 Spore-ECAu ( 3 0 k ) usd/day 25,888 24,792 +4.4% +81.0%

TC11 SK-Spore ( 4 0 k ) usd/day 18,606 18,274 +1.8% +88.8%

MR Pacific Basket usd/day 33,634 30,694 +9.6% +201.5%

MR Atlantic Basket usd/day 29,947 20,846 +43.7% +161.7%

LR2 1 Year TC Period usd/day 35,000 35,000 +0.0% +75.0%

MR2 1 Year TC Period usd/day 15,000 15,000 +0.0% +3.4%

TD12 Cont-USG ( 5 5 k ) ws 118.93 121.71 -2.3% +17.1%

TD18 Baltic-UKC ( 3 0 K) ws 160.50 170.50 -5.9% +25.9%

BSea-Med ( 3 0 k ) ws 157.5 170.0 -7.4% +12.5%

Med-Med ( 3 0 k ) ws 147.5 160.0 -7.8% +18.0%

DELAYS AT TURKISH STRAITS (for daylight restricted vessels)

CHARTERING 8

PRODUCT TANKER MARKETExceptional activity both on LR1and on LR2 in East: 55,000 mtcargoes on MEG-Japan routegained about WS59 points endingat WS250, while rates on LR2 werearound WS260. Handies in Med,after a shy start, began soonincreasing their numbers: a hugenumber of cargoes made thetonnage list shorter and shorterleading rates on CrossMed aroundWS235 (from E Med) and overWS245 (from BSea). W Med kept alower profile around WS195 levelas reduced flow of cargoes found a

sufficient supply of tankers. Bullishdays also on MRs from Cont: themarket kept moving up and thetonnage list quickly shortened.Rates on Cont-US Atlantic coastwent from WS135 on Monday toWS175 on Friday. Healthymovements for Handies in theNorth: rates on Baltic-UKC routeearned around WS10 points,closing at WS145 (and at WS135level on CrossCont). Another quietweek for dirty Handysize and MR inMed: just few cargoes were fixedand the position list kept getting

longer. Rates on Handysize unitslost another few point with 30,000mt cargoes fixed at WS145/150level on CrossMed route. In the MRsegment the market maintained asimilar level of previous week andrates on CrossMed route wererumoured 45@120. The marketwas very slow in UKC too: rates onCrossUKC route went as well downto 30@160. In the Panamaxsegment the market remainedstable: rates on TA for 55,000 mtcargoes from UKC were still atWS120 level.

0

16,000

32,000

48,000

64,000

80,000

17/4/19 17/8/19 17/12/19 17/4/20

TC1 LR2 MEG-Japan (usd/day)

0

10,000

20,000

30,000

40,000

50,000

17/4/19 17/8/19 17/12/19 17/4/20

MR Atlantic Basket (usd/day)

0

10,000

20,000

30,000

40,000

50,000

17/4/19 17/8/19 17/12/19 17/4/20

MR Pacific Basket (usd/day)

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Apr-19 Jul-19 Oct-19 Jan-20 Apr-20

1 YR TC Period (usd/day)

LR2 MR2



Comprehensive Index index 829 868 -4.4% +8.9%

Services:

Shanghai - North Europe usd/teu 725 734 -1.2% +13.6%

Shanghai - Mediterranean usd/teu 841 859 -2.1% +17.3%

Shanghai - WC USA usd/feu 1,528 1,630 -6.3% -0.7%

Shanghai - EC USA usd/feu 2,637 2,720 -3.1% +0.1%

Shanghai - Dubai usd/teu 708 813 -12.9% +0.9%

Shanghai - Santos usd/teu 919 1,008 -8.8% -25.3%

Shanghai - Singapore usd/teu 199 209 -4.8% +40.1%


ConTex index 374 379 -1.3% -6.0%

4250 teu (1Y, g’less) usd/day 10,808 11,169 -3.2% +23.2%

3500 teu (1Y, g’less) usd/day 9,163 9,283 -1.3% +4.9%

2700 teu (1Y, g’less) usd/day 8,864 8,973 -1.2% -1.4%

2500 teu (1Y, geared) usd/day 8,694 8,775 -0.9% -4.8%



FIXTURES

Idle fleet was more than 3 mln teu:carriers tried to adjust theircapacity to the current volume of

cargoes by redelivering vessels andby blank sailings. In general, thecontainer charter market softened:

the Contex kept decreasing losinganother 5 points down to 374.

CHARTERING 9

CONTAINERS

VHSS CONTAINERSHIP TIMECHARTER(source: Hamburg Shipbrokers’ Association)

CONTAINERIZED FREIGHT INDEX(source: Shanghai Shipping Exchange)

Vessel Name Built TEUs TEU@14 Gear Fixture Period RatesAdrian Schulte

2009 7241 5111 no fixed to Global Feeders 4/6 m $18,000/d

Northern Guard 2008 4294 2920 no extended to Ts Lines 1/4 m $10,200/d

Pona 2007 2742 2070 no extended to Evergreen 3/6 m $9,000/d

Miro 1998 1730 1120 yes extended to Messina 4/6 m $7,350/d

As Flora 2005 1223 924 no fixed to Ial 1/2 m $5,950/d

Ceres 2010 889 640 no extended to Borchard 1/2 mEuro

5,000/d

6,000

8,000

10,000

12,000

14,000

16,000

16/4/19 16/8/19 16/12/19 16/4/20

Gearless - 1 YR TC Period (usd/day)

4250 3500 2700

5,000

7,000

9,000

11,000

13,000

16/4/19 16/8/19 16/12/19 16/4/20

Geared - 1 YR TC Period (usd/day)

2500 1700 1100

700

800

900

1,000

1,100

17/4/19 17/8/19 17/12/19 17/4/20

Shanghai Container Freight Index


17-Apr 10-Apr W-o-W Y-o-Y

USD/Euro 1.09 1.09 -0.1% -3.5%

Yen/USD 107.54 108.49 -0.9% -4.0%

SK Won/USD 1,218 1,220 -0.2% +7.1%

Ch Yuan/USD 7.07 7.04 +0.4% +5.4%

3 yrs 5 yrs 7 yrs 10 yrs 15 yrs 20 yrs

USD 0.41 0.48 0.59 0.71 0.81 0.86

Euro -0.29 -0.24 -0.18 -0.08 0.08 0.13

Libor USD Libor Euro Euribor Euro

6 Months 1.10250 -0.09 -0.20

12 Months 0.98188 -0.02 -0.11

Unit 01-Apr-20 M-o-M Y-o-Y

Capesize usd mln 47.8 -0.3% -2.6%

Kamsarmax usd mln 26.7 -0.6% -4.6%

Ultramax usd mln 25.1 -0.5% -4.2%

VLCC usd mln 83.8 -0.3% -0.6%

LR2 Coated usd mln 45.4 -0.3% -2.7%

MR2 Coated usd mln 33.1 -0.5% -1.8%

In the tanker market, NYK singed asingle VLCC at Nantong COSCO KHI(NACKS) for delivery during 2ndhalf of 2021 at a price around $90mln. Furthermore, Sumitomoshipyard received an order fromFinnish owners LundqvistSumitomo for a standard designAframax tanker 112,000 dwt, with

delivery during 1st half of 2022. BPUSA made an order at COSCOShipping Heavy Industry (Nantongfacility) for 1 x FPSO 150,000 dwt tobe delivered during mid-2022.In the dry bulk market, activity wasmainly focused in China: MinshengFinancial Leasing ordered 3 x22,500 dwt Handysize at Zhejiang

Ninghai with delivery starting from2021. China Development Bankconfirmed 3 x 63,500 dwt Ultramaxat New Dayang, with deliverystarting from 2021.

NEWBUILDING REPORTED ORDERS

Type Size Built Yard Buyers Price Comment

Tank 112,000 2022 SumitomoLundqvist Sumitomo

n.a.

Tank 150,000 2022COSCO Shipping Heavy Industry

BP USA n.a. FPSO

Bulk 22,500 2021 Zhejiang NinghaiMinsheng

Financial Leasingn.a. 3 units

SALE & PURCHASE 10

NEWBUILDINGS / FINANCE

INTEREST RATES

INTEREST RATE SWAPS

EXCHANGE RATES

INDICATIVE NEWBUILDING PRICES (CHINA)

20

25

30

35

40

45

50

Apr-18 Oct-18 Apr-19 Oct-19 Apr-20

Newbuilding Prices (usd mln)

Capesize Ultramax MR2

1.05

1.10

1.15

1.20

1.25

17/4/19 17/8/19 17/12/19 17/4/20

USD/Euro Exchange

100

105

110

115

120

17/4/19 17/8/19 17/12/19 17/4/20

Yen/USD Exchange


A couple of interesting deals cameto light: 2 x modern Ultramax mvILLISOS and KIFFISOS 63,000 dwtbuilt in 2019 at Imabari (BWTSfitted) were sold to ADNOC for$26.3/26.5 mln range.A 2010 Kamsarmax mv BW BARLEY83,000 dwt built at Sanoyas (SS duein 2023) was sold to ScandinavianBuyer with a charter back for 2years at $11,000/d. On Wednesdaysome offers were invited for the 2 xHandysize 35,000 dwt built in 2010at Nantong mv ASIAN PEARL III andIV which will be interesting tofollow to understand the direction

of the price for 10 yrs old Chineseunits.In the tanker market there wasdefinitely more traction andrequirement especially for vintageVLCC for further storage capacitydriven by oil price.3 x VLCC were sold at a very firmen bloc price: the MARBELLA281,000 dwt built in 2000 atMitsubishi, the KELLY 280,000 dwtbuilt in 2000 at Mitsui and theRENE 281,000 dwt built in 2002 byMitsui for a total price of $92 mlnen bloc to Middle Eastern buyer.In the smaller product tanker

segment, the ESTHER 36,000 dwtbuilt in 2005 at HMD was sold tothe Indonesian Waruna for a priceof $9 mln.

SECONDHAND REPORTED SALES


Dry Bulk usd/ldt 323.7 331.2 -2.2% -28.3%

Tanker usd/ldt 326.7 335.8 -2.7% -28.3%


Capesize usd mln 31.1 31.1 +0.0% -13.3%

Kamsarmax usd mln 21.9 21.9 -0.4% +3.2%

Supramax usd mln 15.8 15.8 -0.3% -11.1%

VLCC usd mln 76.1 75.9 +0.3% +13.2%

Suezmax usd mln 52.9 52.8 +0.0% n.a.

Aframax usd mln 41.2 41.1 +0.3% +23.3%

MR Product usd mln 30.1 30.0 +0.3% +8.2%

BALTIC SECONDHAND ASSESSMENTS

SHIP RECYCLING ASSESSMENT

From June 2019, the Panamax BSPA benchmark changed into a Kamsarmax (82,500mtdwt on 14.43m, LOA 229m, beam 32.25m, 97,000cbm grain) and the benchmark BSPAAframax specifications was amended to 115,000mt dwt and 44m beam

SALE & PURCHASE 11

SECONDHAND / DEMOLITION

20

25

30

35

40

45

17/4/19 17/8/19 17/12/19 17/4/20

Secondhand Values (usd mln)

Kamsarmax Aframax MR

350

400

450

500

17/4/19 17/8/19 17/12/19 17/4/20

Demolition Assessment (usd/ldt)

Dry Bulk Tanker


TYPE VESSEL NAME DWT BLT YARD BUYERS PRICE NOTE

Bulk BW Barley 83,000 2010 Sanoyas Scandinavian buyers 15.5 With 2 years TC back

Crude Rene 314,000 2002 Mitsui

Crude Kelly 314,000 2000 Mitsui

Crude Marbella 281,000 2000 Mitsui

Prod Esther 36,000 2005 Hyundai Waruna, Indones ia 9

Prod Ribe Maersk 35,000 2004 Guangzhou Indones ian buyer 8.25

Chem Amazonia 6,000 2012 Chongqing Dongfeng 5

Chem Armonia 6,000 2012 Chongqing Dongfeng 5

Chem Kappa Sea 6,000 2012 Chongqing Dongfeng 5

Sinopec, China En bloc sa le, price each

Middle Eastern buyers 92 En bloc sa le, tota l price expressed

Ukraine ready to ban wheatexports if necessaryUkraine, one of world's top grainexporters, is ready to ban wheatexports if sales exceed limitsagreed with traders, the deputyeconomy minister in charge ofagriculture told Reuters onWednesday. Any furtherrestrictions of Ukraine's grainexports could speed up trade fromBlack Sea producers Russia andKazakhstan, depleting their grainexport quotas earlier thananticipated. Ukraine has exported18 million tonnes of wheat so far in2019/20, leaving an additional 2million tonnes available for exportover the rest of this season thatruns until June 30, in line with amemorandum signed with traders."If the pace of exports becomessuch that we are exporting 2million tonnes in April, so, as weagreed (with traders) and warned -we will have to implement theparagraph of the memorandum tostop exports," Taras Vysotskiy toldReuters. Ukraine's wheat harvestlargely exceeds domesticconsumption, but last monthUkrainian bakers and millers askedthe government to limit grainexports to maintain bread prices.The government said it would curbthe export of some food productsbut so far has only halted foreignsales of the popular staplebuckwheat. It has also askedparliament to approve liftingimport duties on some cereals.Disruptions to the supply chaincaused by the coronavirusprompted neighbouring Romaniato ban cereal exports to non-European Union destinations. Lastweek Russia agreed to limit grainexports to 7 million tonnes fromApril to June to conserve supplies

for the domestic market during thecoronavirus outbreak.)Although the amount is roughly inline with what the country wasexpected to ship anyway in theperiod, Russia's online calculatorshows that, as of Wednesday, only4.8 million tonnes of grain remainsavailable for export from the quotauntil June 30 and 2.2 milliontonnes are already declared forexportIndia to export wheat toAfghanistan, Lebanon indiplomatic dealsIndia will export 50,000 tonnes ofwheat to Afghanistan and 40,000tonnes of the grain to Lebanon indiplomatic deals, the Indian farmminister said on Friday. Since Indiahas produced more wheat than itconsumes, New Delhi has decidedto export the grain to Afghanistanand Lebanon after receivingrequests from the two. countries,Narendra Singh Tomar said in aTweet. The Indian government hasasked the National AgriculturalCooperative Marketing Federationof India Ltd, a farmers'cooperative, to supply wheat toAfghanistan and Lebanon under agovernment-to-government deal,Tomar said. India is expected toproduce a record 106.21 milliontonnes of wheat this year, asfavourable weather conditionshelped to improve crop yields,with output far exceeding demandand further boosting stocks atgrain bins.Dry weather adds to risks forRussia's grain cropDry spring weather with little rainexpected in the next two weeks isstarting to raise concerns aboutthis year's grain harvest amongRussian farmers and analysts.Russia, the world's largest wheat

exporter, is still expected toharvest a larger crop in 2020 thana year ago as farmers sowed abigger area with winter grains, andtheir sowings remain in a healthystate after a mild winter. However,the lack of rain in the main grainexporting southern regions isstarting to support Russian wheatprices, Dmitry Rylko at IKARagriculture consultancy said,adding that rains were "badlyneeded" after a dry March.SovEcon, another consultancy saidthe weather remainedunfavourable for the new crop.Romania's wheat export ban mayhit loadings, market falloutlimitedRomania's surprise ban on wheatexports will cause headaches fortraders seeking to meet existingcontracts but is not expected tocause major disruption tointernational supply, grain traderssaid on Tuesday. Romania hasbanned cereal exports to non-European Union destinationsduring a state of emergency untilmid-May to cover its domesticneeds during the coronavirusoutbreak, Interior Minister MarcelVela said last week. Wheat, barley,oat, maize, rice, wheat flour,oilseed and sugar are subject todecision which became effectivefrom April 10. Romania is a majorwheat and barley exporter to theMiddle East, with Egypt and Jordanamong key buyers. The banfollowed moves by other Black Searegion exporters to limit exports toconserve domestic food supplies inthe face of coronavirus uncertaintyand marks a first grain exportrestriction by an EU country duringthe health crisis.

Source: Refinitiv

COMMENT MARKET REPORT – WEEK 48/2019 12COMMODITIES 12MARKET REPORT – WEEK 16/2020

DRY BULK NEWS

OPEC, Russia approve biggest-ever oil cut to support prices amidcoronavirus pandemic to leasespace for Russia, Saudi to debateoil output cuts as U.S. resistsjoiningOPEC and allies led by Russiaagreed on Sunday to a record cutin output to prop up oil prices amidthe coronavirus pandemic and saidthey had an unprecedented dealwith fellow oil nations, includingthe United States, to curb global oilsupply by 20%. Measures to slowthe spread of the coronavirus havedestroyed demand for fuel anddriven down oil prices, strainingbudgets of oil producers andhammering the U.S. shale industry,which is more vulnerable to lowprices due to its higher costs. Thegroup, known as OPEC+, said it hadagreed to reduce output by 9.7million barrels per day (bpd) forMay and June, after four days oftalks and following pressure fromU.S. President Donald Trump toarrest the price decline. Thebiggest oil cut ever is more thanfour times deeper than theprevious record cut in 2008.Producers will slowly relax curbsafter June, although reductions inproduction will stay in place untilApril 2022. Total global cuts willinclude contributions from non-members, steeper voluntary cutsby some OPEC+ members andstrategic stocks purchases by theworld's largest consumers.India plans to fill strategic oilstorage by the third week of MayIndia plans to completely fill itsstrategic petroleum reserve (SPR)by the third week of May bymoving about 19 million barrelsinto the sites by then, themanaging director of the country'sSPR said on Tuesday. India is

moving the oil to the SPR to helpthe country's refineries reducetheir excess crude as the lockdownto contain the outbreak of COVID-19, the respiratory disease causedby the new coronavirus, hasdented transportation andindustrial fuel consumption inAsia's third-largest economy.India's fuel demand in Marchdeclined by 17.8%, the lowest inover two decades. India will bediverting cargoes for loading inApril already bought by refinersIndian Oil Corp, Bharat Petroleum,Hindustan Petroleum andMangalore Refinery andPetrochemicals Ltd. The refinerscut their crude processing afterlocal fuel demand collapsed andare unable to store the excess oilthemselves.Brazil battles dozens ofcoronavirus cases on offshore oilrigsThere have been 126 confirmedcases of the coronavirus among oiland gas workers in Brazil, including74 people who were recently onoffshore oil platforms, regulatorANP told Reuters on Tuesday,exposing an outbreak far worsethan previously thought. Theregulator said via email that as ofMonday evening there wereanother 897 suspected cases ofcoronavirus in the industry, whichemploys tens of thousands ofBrazilians and is a key bulwark ofLatin America's largest economy.Companies have been girding foroutbreaks in the offshore oilindustry, where employees oftenwork, sleep and eat in closequarters. While isolated cases havebeen reported in other oil-producing areas, such as the Gulfof Mexico and the North Sea,Brazil's offshore fields appear to

have been hit the hardest.Although the impact on productionin Brazil has been modest so far,skeletal staffing is already stallingdevelopment in some of theworld's most promising offshore oilfields, adding to uncertainty asglobal demand for petroleum driesup.Saudi Arabia's sovereign wealthfund, the Public Investment Fund(PIF), has accumulated stakesworth about $1 billion in fourglobal oil and gas industry, asenergy demand has slumpedduring the coronavirus outbreak.U.S. banks prepare to seize energyassets as shale boom goes bustMajor U.S. lenders are preparing tobecome operators of oil and gasfields across the country for thefirst time in a generation to avoidlosses on loans to energycompanies that may go bankrupt,sources aware of the plans toldReuters. JPMorgan Chase & Co,Wells Fargo & Co, Bank of AmericaCorp and Citigroup Inc are each inthe process of setting upindependent companies to own oiland gas assets, said three peoplewho were not authorized todiscuss the matter publicly. Thebanks are also looking to hireexecutives with relevant expertiseto manage them, the sources said.The industry is estimated to owemore than $200 billion to lendersthrough loans backed by oil andgas reserves. As revenue hasplummeted and assets havedeclined in value, some companiesare saying they may be unable torepay

Source: Refinitiv

COMMENT MARKET REPORT – WEEK 48/2019 13COMMODITIES 13MARKET REPORT – WEEK 16/2020

OIL & GAS NEWS

300

400

500

600

17/4/19 17/8/19 17/12/19 17/4/20

Wheat and Corn Prices (usd/t)

Corn Wheat

3,000

3,500

4,000

4,500

5,000

17/4/19 17/8/19 17/12/19 17/4/20

Steel Prices in China (rmb/t)

Rebar Plate

40

60

80

100

120

140

17/4/19 17/8/19 17/12/19 17/4/20

Iron Ore and Coal Prices (usd/t)

Steam Coal Iron Ore

15

25

35

45

55

65

75

17/4/19 17/8/19 17/12/19 17/4/20

Brent and WTI Oil Prices (usd/bbl)

Brent WTI

0

200

400

600

800

17/4/19 17/8/19 17/12/19 17/4/20

Bunker Prices @ Singapore (usd/t)

IFO 380 0.5% LSFO MGO


Wheat usd/t 539.3 562.5 -4.1% +22.3%

Corn usd/t 321.0 332.0 -3.3% -10.4%

Soybeans usc/bu 831.0 864.5 -3.9% -5.4%

Palm Oil usd/t 520.6 561.7 -7.3% -1.7%


Iron Ore (Platts) usd/t 84.2 83.4 +1.0% -9.7%

Iron Ore @Tangshan rmb/t 679.0 663.0 +2.4% +0.3%

Rebar in China rmb/t 3,523 3,496 +0.8% -15.1%

Plate in China rmb/t 3,711 3,728 -0.5% -10.9%

HR Coil in China rmb/t 3,487 3,446 +1.2% -15.7%

CR Sheet in China rmb/t 3,880 3,881 -0.0% -14.2%


Steam @ Richards Bay usd/t 56.7 58.4 -2.9% -17.8%

Steam @ Newcastle usd/t 62.0 60.0 +3.3% -26.6%

Coking Coal Australia usd/t 135.0 112.8 +19.7% -33.8%


Crude Oil Brent usd/bbl 27.3 32.3 -15.6% -62.4%

Crude Oil WTI usd/bbl 14.7 23.5 -37.7% -77.6%

Crude Oil Dubai usd/bbl 24.3 26.7 -9.0% -67.2%

Nat Gas Henry Hub usd/mmbtu 1.75 1.77 -1.1% -30.6%

Gasoline Nymex usd/gal 0.72 0.70 +3.0% -66.3%

ICE Gasoil usd/t 271.0 295.3 -8.2% -58.1%

Naphtha Tokyo usd/t 198.6 182.3 +9.0% -65.9%

Jet-Kerosene Asia usd/bbl 25.3 26.3 -3.7% -69.4%


Rotterdam usd/t 176.0 180.0 -2.2% -58.1%

Fujairah usd/t 167.5 195.0 -14.1% -60.9%

Singapore usd/t 194.5 216.0 -10.0% -54.4%

Rotterdam usd/t 218.5 240.5 -9.1% n.a.

Fujairah usd/t 246.0 271.0 -9.2% n.a.

Singapore usd/t 262.0 271.0 -3.3% n.a.

Rotterdam usd/t 264.5 290.5 -9.0% -56.7%

Fujairah usd/t 391.0 448.0 -12.7% -46.9%

Singapore usd/t 264.0 282.0 -6.4% -58.0%

IFO

38

00

.5%

LSF

OM

GO

OIL & GAS

COAL

IRON ORE AND STEEL

AGRICULTURAL

BUNKER

COMMODITIES 14

PRICES


MARKET REPORT –WEEK 19/2019

NEWS

GENOA

HEADQUARTERS

banchero costa

via pammatone 2

16121 Genova - Italy

tel +39 010 56311

[email protected]

MONACO

bancosta (monaco) sam

MONACO

tel +377 97707497

[email protected]

GENEVA

bancosta s.a.

SWITZERLAND

tel +41 227372626

[email protected]

LUGANO

bc insurance s.a.

SWITZERLAND

tel +41 912251067

[email protected]

LONDON

bancosta (uk) ltd.

UNITED KINGDOM

tel +44 2073981870

[email protected]

DUBAI

bancosta medioriental services dmcc

UAE

tel +971 43605598

[email protected]

SINGAPORE

bancosta (oriente) pte ltd.

SINGAPORE

tel +65 63276862

[email protected]

HONG KONG

bancosta (oriente) ltd.

HONG KONG, CHINA

tel +852 28651538

[email protected]

BEIJING

bancosta (oriente) ltd. beijing office

CHINA

tel +86 1084534993

[email protected]

TOKYO

banchero costa tokyo office

JAPAN

tel +81 362688958

[email protected]

SEOUL

bancosta (oriente) ltd. korea

SOUTH KOREA

tel +82 2 69592637

[email protected]

15

OFFICES AND CONTACTS

Legal notice: The information and data contained in this presentation is derived from a variety of sources, own and third party’s, public and private, and is provided for

information purposes only. Whilst banchero costa has used reasonable efforts to include accurate and up-to-date information in this presentation, banchero costa

makes no warranties or representations as to the accuracy of any information contained herein or accuracy or reasonableness of conclusions drawn there from.

Although some forward-looking statements are made in the report, banchero costa cannot in any way guarantee their accuracy or reasonableness.

banchero costa assumes no liabilities or responsibility for any errors or omissions in the content of this report.

[email protected]

Documents

BANCOSTA Weekly Market Report...Imports from Russia also increased by +9% year-on-year to 3.7 mln tonnes, edging above Canada. ... from the 179.3 mln tonnes of 2017. One main trend