Week 27

6 Jul

AlbionDesign GmbH week 27/2022

Economically Ecological

€/$ 1.0256 ↘ $/₽ 62.54 ↗ black market rate between 100-115 Rubles to the Dollar

EUA Dec 22 €82.96 ↘ API 2 Front month $330.00 ↘

It is shaping up to be wild Summer on top of a wild Spring, after two years of COVID. Gas is keeping traders awake at night. Last week the story was the UK has too much LNG arriving and not enough pipeline flow to the EU so supply > demand. Scratch that. This week the news is Norway will cut UK gas due to a strike. Never one to miss a Party, Putin has decided that Sakhalin-2 should be nationalised. To make life easier, Russian coal is banned in August.☹

Overview:

· The German government proposed State support on gas means what? Will this send gas to the moon?

· Let’s rely on South Africa for coal while their local blackouts continue. No comment.

Demand:

· Nothing less than a massive recession will dampen demand

Freight:

· Baltic Coaster – ARA flat on week 26 €32/32on 3kt

· Black Sea Coaster ↘ on week 26. $50/52 on 3kt

· Azov-Marmara Coaster flat on week 26. $40/45

· Handys/Supras ↘ on week 26. About $21k on a 4 month time charter. Panamax and larger coming off highs

Prices:

· Sunflower Husk Pellet - European Production: ↗ FCA €250+