Week 35

31 Aug

AlbionDesign GmbH week 35/2022

Economically Ecological

€/$ 1.0019 ↗ $/₽ 60.15 ↗ black market rate between roughly 30% higher

EUA Dec 22 €81.43 ↘ API 2 Front month $351.00 ↘

Having no idea how a price cap on electricity would possibly work, we’ll just avoid the topic all together. Seeing how it increases supply is even more beyond my simple thinking.

Overview:

· Offshore wind appears to be a given a boost with lots of interesting projects coming on

· GazProm’s latest temper tantrum with Engie shows the reliability of Russian supply. Algeria’s gain.

· Necessity gets things moving and new technologies are emerging on waste gases, solid biomass and we should expect to see new feedstocks and origins.

Demand:

· Demand for low carbon solids, liquids, and gases continues to increase across more sectors.

· Restocking for winter should be starting, in earnest, soon. Eyes on large heating markets: Denmark and Italy

· Utilities seem to be sitting more comfortably this winter. The same cannot be said for non utility burners.

Freight:

· Baltic Coaster – ARA ↘ on week 34 €26/27 on 3kt

· Black Sea Coaster ↘ on week 34. $36/38 on 3kt

· Azov-Marmara Coaster ↘ on week 34. $48/50 on 3kt

· Handys/Supras ↘ on week 34. About $17.5k on a 4 month time charter.

Prices:

· Sunflower Husk Pellet - European Production: flat €250+

· Non-sanctioned Russian origin Sunflower Husk Pellet CIF Med €175/185