Week 23

AlbionDesign GmbH                                                      week 23/2022

Economically Ecological                               

€/$ 1.0689 ↘                    $/₽ 61.30 ↗    black market rate between 100-115 Rubles to the Dollar

EUA Dec 22 €80.35 ↘     API 2 Front month $300.00  ↘

Coming into June the thermostat and prices are pushing higher. How are we, in Europe, combatting this?  -Poorly.

The plan seems to be, cross your fingers we can get to 80% gas storage levels before winter and burn a lot of coal. Where the coal is coming from is anybody’s guess.

With Whit Monday and school holidays it was a quiet week., overall. Next Monday “Russia Day, Greek Whit Monday.

Overview:

·         Last week some EN+ A1 went for over €300. Highest possible spec and colour but shows the trajectory.

·         Woodchips as a feedstock has shot higher. Here, if you are willing to pay, there is volume. The same cannot be said on pellets.

·         While cargo demand is slightly off, bunkers are keeping coasters from greater falls.

Demand:

·         We’re calling it. Far more demand than supply. Chipped material is tight but there, pellet production no.

·         How important is a secure supply of biomass? Important enough to invest in CAPEX projects? If not, good luck. When speaking to producers, they are not being greedy, they are trying to survive.

Freight:

·          Baltic Coaster – ARA  ↘  on week 22. €33/34 on 3kt                          

·         Black Sea Coaster  ↘ on week  22. $64/66 on 3kt                                

·         Azov-Marmara Coaster  ↗ on week 22. $37/38                                   

·          Handys/Supras  ↘  on week 22.                 About $27k on a 4 month time charter                                                 

 Prices:                                                                                                                

·         Sunflower Husk European Production: ↗ FCA €248+

·         Olive Wastes S. Spain FOB: ↗ €N.A. FOB Sfax €143/tonne             

·         Wood pellet CIF ARA:  ↗  higher on week 21      Industrial quality & volume  $345                                               

·         Wood pellet A1 FOB Baltic non Russian/Belarus feedstock ↗ €290+

·         PKS FOB Indo/Malay  ↗ $153

Into ARA on the densified biomass deduct $1+- for every additional 1kt as there is a freight saving.

Links and interesting reading:

·         https://innovationorigins.com/en/poland-must-quit-its-coal-addiction-or-nothing-will-come-of-europes-climate-plans/

·         https://www.euronews.com/my-europe/2022/06/03/poles-told-to-gather-firewood-amid-soaring-energy-prices

·         https://www.ft.com/content/078e2d50-f161-4257-8364-c80b5bfecc7f

·         https://www.hellenicshippingnews.com/russia-says-it-can-bypass-eu-ban-on-insuring-maritime-oil-deliveries-to-third-countries/

·         https://www.argusmedia.com/en/news/2338323-clarity-grows-on-europes-energy-transition-timeframe

https://www.hellenicshippingnews.com/how-europe-breaks-its-dependence-on-russia/

Numbers subject to change. These figures are indications and in no way a confirmation on tradable prices. For reference only.