MID-SHIP Cement Report – Jan 22, 2025
January 22, 2025
Market Overview:
Our markets continued mixed this week and last, and again, trading is confined to a narrow range, except for the cape market, which was up by mid-week and then declined into the week’s end and the start of the new work week.
It was a short week in the USA due to the MLK Day bank holiday yesterday.
The inauguration of the American President had no significant impact on the freight market (yet), while tariffs are being said to be a matter of negotiation. The ceasefire agreement in Gaza marks the beginning of a phased exchange of hostages and prisoners expected to be released in the coming weeks, and with respect to the Red Sea, the Houthis, in response, have indicated a pause in their attacks if the Gaza ceasefire holds. This could offer a temporary respite for vessels transiting the Suez Canal. If the Western Fleet resumes operations there, analysts predict a drop in freight rates across containers, tankers, and bulk carriers, as well as a potential correction in the oil markets. However, the situation there is fragile and subject to change at a moment’s notice.
Expect a quiet week in the east this week ahead of the January 29th Chinese Lunar New Year celebration.
Sentiment remains weak in the short term.
Positional volatility continues to impact all size segments.
The latest IMF World Economic Outlook projects global growth at 3.3% for both 2025 and 2026, which is below the historical average of 3.7%. This forecast remains largely unchanged from the October 2024 outlook, with an upward revision for the United States offsetting downward revisions in other major economies (Europe and China).
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