MID-SHIP Alumina/Bauxite – Sept 10, 2024

September 10, 2024

Market Overview:
Post summer season and the market traded within a very narrow range this past week. The trend continued with the Cape size was showing strength. Note Panamax rounds in the Pacific have reached almost double those for a transatlantic round.

Current Market Conditions:
A quiet start to the week. Notably, since Friday, rates have stabilized.

Broker Estimates and Historical Data:
Please refer to the chart below, which illustrates our current broker estimates and the historical range in commodity-specific benchmark trade lanes.

Market Outlook:
As we approach the commencement of the northern hemisphere grain season, and potential realization of lower interest rates and Panama Canal returning to normal transit capacities, we anticipate increased positional volatility. This market continues to be influenced by several factors, including, ongoing going wars in Ukraine and Gaza, diversions of Red Sea traffic via the cape by the Houthis, and the convergence of Panamax and Supramax daily rates. Add this week, the tropical storm hitting the USG.

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