MID-SHIP Cement Report – May 13, 2025

May 13, 2025

Market Overview: 

With many participants in Copenhagen this week, it has been a relatively quiet start to the week for the dry bulk market. Overall, sentiment is cautiously optimistic. The consensus is that the market will improve on the back of the recent tariff news, which we have seen already in the Pacific, and talk that the US Gulf will likely improve here in the coming weeks ahead as more spot ships start to clear out.

The recent US-China tariff agreement marks a significant de-escalation in their ongoing trade war, with both countries agreeing to reduce or suspend many of the tariffs imposed earlier. The US will lower tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on US goods from 125% to 10% and also scrap non-tariff measures like export restrictions on critical minerals. Although some tariffs remain, including a 20% US surcharge targeting fentanyl-related concerns, the deal reflects a mutual desire to avoid economic decoupling and resume negotiations.

If no further agreement is reached, tariffs could partially return after 90 days, but at lower levels than before. The truce has been welcomed by markets, especially in the shipping sector, and is seen as a step toward stabilizing global trade. However, both sides are claiming victory, and the long-term outcome remains uncertain, with China perceived to be in a stronger negotiating position.

As of May 13, the Brent crude oil price is approximately USD 65 per barrel, reflecting a 3.75% increase from the previous trading day and a nearly 10% rise over the past week. This surge is largely attributed to renewed optimism following the US-China tariff truce, which has eased trade tensions between the world’s two largest oil consumers and boosted market confidence. Also noteworthy, the UK announced it would impose another sanctions package on Russia, targeting several directors of oil trading at 2RiversGroup and around 100 oil tankers linked to Russia’s ‘dark’ fleet, as part of efforts to tighten pressure on Moscow over the Ukraine conflict.

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