Week 21

25 May

AlbionDesign GmbH week 21/2022

Economically Ecological

€/$ 1.0661 ↗ $/₽ 58.90 ↘ black market rate between 100-115 Rubles to the Dollar

EUA Dec 22 €81.50 ↘ API 2 Front month $294.00 ↘

I haven’t been back on the portside of the Atlantic in a few months and diesel costs are eyewatering. Casually looking at employment billboards, the minimum wage down in the southeast (where pellets are made) has increased massively. And while the price may be lower than the Baltics, the power price increase is no less dramatic.

At least the good news is there’s plenty of coal in ARA. Jokes aside, difficulties in all energy markets persist.

Overview:

· Hearing interesting Mediterranean offers of Russian-white pellets from countries with darker feedstock

· Have a look at the firewood (malkos/malka) prices in Lithuania and Latvia.

· The Baltic Coaster is down slightly for the first time in a long time.

· Are we at the dawn of a nuclear renaissance?

Demand:

· Cynically: would there be smuggling and sanctions avoidance if there were not a healthy demand?

· Growth in demand is limited to the creativity and willingness to look at new products and logistics.

Freight:

· Baltic Coaster – ARA ↘ on week 20. €34/35 on 3kt

· Black Sea Coaster ↗ on week 20. $61/63on 3kt