Bulk Carriers
This week was marked by an increased S&P activity with 16 units having changed hands in total, marking a 78\% increase compared to the previous week, increased by 33\% compared to the year to date average. As regards to the bulkers, 50\% of the vessels purchased were between 6 to 9 years old, with 3 panamaxes averaging 16 years and one capesize sold.
On the commodity side, Baltic index closed with gains of 5.6\% this week , mainly underpinned by the improved Capesize rates that experienced gains of 13.96\%, indicating that the market is starting to finding some support on this size. The capesize index rose to 2,630 points, marking a 12.5\% increase compared to previous Friday, climbing to four months high. As mentioned in our previous report increased construction activity is anticipated in China during May, in response to the upcoming rainy in south eastern parts of the country something that will bolster iron ore imports in the short term amid low steel inventories. After the built up in stockpiles during March, when inventories have picked up to almost 10.0 million tonnes, stockpiles have come down almost 50\% to 6.7 million tonnes in view of increased anctipicated real estate and infrastructure activity. Future indications show that steel demand will remain in increased level since steel construction futures traded at the Shanghai
Futures exchange were up by 1.7\% to $575.73 a tonne while iron ore futures at Dalian commodity exchange rose by 0.8\% to $74.6 (473,5 yuan) per tonne.
However ,the prolonged mine outage in Brazil is still a worrying factor that should be beared in mind, since it could reduce the demand for tonnemilles.
Tankers
In the tanker segment the number of vessel’s having changed hands this week, was reduced by 25\% reaching the 9. Newbuilding activity is remaining intense with 11 orders placed, mainly Aframax and chemical tankers .
On the commodity side, US plans to reinstate sanctions against Iran have sustained oil prices rat near multi-year possibly leading the market into undersupply. Sanctions against the Islamic state of Iran that produces around 4\% of global crude oil supply come amid an oil market that has is already firm due to strong demand, especially from the Asian markets, and OPEC’s curbed production. U.S. West
Texas Intermediate (WTI) crude futures were at $71.42 a barrel. However soaring U.S. crude oil production may also help fill Iran's supply gap, marking another record last week by climbing to 10.7 million barrels per day (bpd) quickly approaching Russia’s production that produces around 11 million bpd.
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