MIXED PROSPECTS FOR SUPRAMAX SEGMENT

摘要

We expect Supramax earnings to be volatile in the coming months because of weak steel trade. In May, the BSI went below the 800 mark. For Far-East Australia and Far-East Cont, trip rates fell by about 17% and 16% respectively compared with April. Increasing concerns among governments to protect their own domestic steel industries and the following rally of anti-dumping duties will curb the exports from major exporting countries such as China and Japan. The latter’s exports of iron and steel products from January-April have fallen by 7% compared with the same period in 2016. China’s steel exports are also declining rapidly, putting pressure on the demand for Supramaxes. Improving domestic steel production and exports from other producers such as India, Turkey and Taiwan will only partially offset some losses. However, stable grain trade should provide employment opportunities. Grain trade should support the charter rates on USG-Far East and the Med, while sluggish steel trade might put pressure on the charter rates in the Pacific and for Transatlantic voyages.