Week 17

27 Apr

AlbionDesign GmbH week 17/2022

Economically Ecological

€/$ 1.0597 ↘ $/₽ 75.83 ↘ black market rate between 100-115 Rubles to the Dollar

EUA Dec 22 €81.03 ↗ API 2 Front month $325.00 ↗

Poland should be ok. 74% of underground gas storage filled leaving the heating season. New pipe from Norway via Denmark opening up in October. The polish will be fine for gas. Bulgaria unfortunately does not have LNG terminals but they have access to Azeri gas. Let’s hope they’ll be fine. Keep calm, for now.

Overview:

· Galati reopening Soviet gauge rail for further Ukrainian rail, on top of the barges and trucks currently used.

· Fewer Turkish owners calling into Azov. Insurance costs are astronomical.

· Some are saying, “expect higher food and fuel costs for 3 years”

· More active engagement and heavier equipment being offered by German to the Ukrainian war effort.

· Everything that burns costs more this week.

Demand:

· Demand continues to outweigh supplies. Talk of more alternatives use but few pulling the trigger, just yet

· Incremental new growth continues unabated in markets that traditionally didn’t use biomass.

Freight:

· Baltic Coaster - ARA <-> flat week 16. €39/40 on 3kt

· Black Sea Coaster ↗ on week 16. $43/45