Over the past week there were glimmers of what could conceivably happen on the markets into Asia, as cargoes of ethanol, styrene, ethylene dichloride, methanol, phenol and acrylonitrile occasionally sought space for November and December. One by one, however, trade stalled – either because availability for products such as styrene dried up or because pricing arbitrage failed to open long enough. The ultimate result is that very little business actually concluded. Owners are still pressing for rates of $50 per metric ton for 5,000-ton parcels to Korea, but unless more business can firm up, it is looking more likely that rates will sag.

A slight increase in the amount of spot demand is discernible on the eastbound transatlantic route, but there is an awful lot of completion space to fill up first, and so whilst welcome, the extra volume is unlikely to affect rates this week. Products such as cumene, lysine, vinyl acetate monomer, biofuels, glycol, amines and methylene chloride have been seen. Some base oils have also been mentioned, but the larger lots will probably be fixed as a combination with clean petroleum, which will ensure rates will be a fraction of what it would cost if shipped separately as base oil. The 4,250 tons of base oils from the U.S. Gulf to Livorno, Italy, mentioned last week was booked in the mid $50s/t.

Prompt space can be found to various Latin America and Caribbean destinations, putting downwards pressure on rates. Ethanol in the amount of 8,000 tons, for example, from the U.S. Gulf to Kingston, Jamaica, paid just $120,000, although there are reports too of 5,000 tons of urea ammonia nitrate being booked from Mississippi to Altamira, Mexico, at $32/t.

The southbound market has been pretty dull. A couple of ethanol requirements have been bandied out, and there have been several methanol cargoes booked. There is talk again of 10,000 tons of paraxylene to Suape, Brazil, but base oils are not part of the scene.

Ethanol has again been the main commodity in trade to India and the Middle East Gulf this week, with mention of several requirements measuring between 30,000 tons and 40,000 tons each to India and the United Arab Emirates. An unusual enquiry of 25,000 tons of phosphoric acid was quoted from Coatzacoalcos, Mexico, to Tuticorin, India. Traders are believed to have worked 6,000-8,000 tons of base oils from Paulsboro, U.S., to Mumbai.

Europe

It has been another quiet week on the spot market in the North Sea and Baltic. Rates remain weak, with typical 3,000-ton parcels from Rotterdam, the Netherlands, to Le Havre, France, fetching around 15/t. FAME and ethanol are among the most prevalent cargoes, with something like 12 to 15 cargoes having been booked during the week. Base oils have been quieter out of the Baltic.

There are some southbound cargoes that seem to excite some owners and these invariably go at highly competitive levels. A second cargo of 10,000 tons of FAME concluded from Rotterdam to Huelva, Spain, at just $16/t, for example. Elsewhere though, 6,000 tons of paraxylene from Rotterdam to Iskenderun, Turkey, ended up paying $39/t, which is similar to last-done. Biodiesel in the amount of 3,000 tons from Stanlow, U.K., to Genoa, Italy, fetched mid $50s/t after several weeks of trying. Most base oil is term-supply, with nothing noted on the spot.

Northbound rates are pretty steady. A toluene haul of 4,000 tons from Priolo, Italy, to Antwerp-Rotterdam-Amsterdam fixed in the mid- to high $40s/t. Styrene, 3,000 tons of which, was booked from Tarragona, Spain, to Antwerp-Rotterdam-Amsterdam, and there have been possibilities to ship caustic, pyrolysis gasoline, urea ammonia nitrate, vegetable oil, ethanol and aromatics.

Not a lot has changed in the Mediterranean. Some half-dozen ships spent the week sitting at anchor, unable to fix anything – which is very unusual for this period. Base oil has been reasonably busy on the spot market, with cargoes fixed out of the Black Sea and West Mediterranean and further requirements pending.

Prompt space for transatlantic trade was rather scarce in the final week of October, and 7,000 tons of pyrolysis gasoline from Fawley, U.K., to Houston ended up paying $42/t – considerably more than the previous lifting. Further cargoes of benzene and pyrolysis gasoline have been attempted, and there was also 5,000 tons of paraxylene quoted from Rotterdam to Mexico. A load of 5,000-10,000 tons of methanol was circulated from Rotterdam to the U.S. Gulf, while 20,000 tons of MTBE from Rotterdam to Houston was fixed on subjects. Sulphuric acid in the amount of 18,000 tons was noted from Finland to the U.S. Gulf, and there has been interest in moving acetone, alpha methyl styrene, urea ammonia nitrate and glycol ether to the U.S.

The steady trickle of cargoes from Europe to the Far East that began the previous week continued into this week, but it is mostly small lots, and with no outsiders able to latch onto anything particularly juicy, rates have been surprisingly firm. Owners have been quoting levels in the $120s/t and $130s/t for some of the small 1,000-ton lots. Chemicals in the amount of 2,500 tons from Rotterdam to the Yangtze River, China, ended up fixing at just under $100/t. Small lots of polyol, propylene oxide, glycol ethers, butanediol, intermediates, acrylonitrile, adiponitrile and perchloroethane have been quoted from northwestern Europe, while from the Mediterranean there has been methanol, octene and xylene.

The Europe-to-India and the Middle East Gulf market seems more balanced in terms of tonnage supply-demand this week, and rates are mostly stable. Some fresh base oil enquiries were noted to the United Arab Emirates and India, along with some acrylonitrile and acetone.

Asia

The amount of prompt open tonnage in areas such as Northeast Asia has become more apparent, especially for ships larger than 10,000 dwt. Smaller ships, however, have much better coverage, with many booked through mid-November, and many well into the second half of November. Base oils have been pretty active, but everything is well below 3,000 tons, and is often just 1,000 or 2,000 tons. Rates are generally unchanged – 2,000 tons of chemicals from Pyeongtaek, Korea, to South China paid mid $30s/t, for example. Paraxylene in the amount of 10,000 tons from Singapore to mid China is believed to have obtained mid- to high $20s/t, although other similar movements have been reported in the mid $20s/t. A shipment of 5,000 tons of ethylene dichloride from Merak, Indonesia, to Map Ta Phut, Thailand, reportedly paid in the low $20s/t. Palm oil markets are busier, which has tightened tonnage supply in Southeast Asia, for example.

The transpacific export market is not exactly busy, but freight levels are holding up. A cargo of 30,000 tons of benzene from Korea and Japan to the U.S. Gulf evidently paid mid $30s/t, and the same ship is believed to have fixed a further 9,000 tons of benzene from Korea in the low $40s/t. Further cargoes of wax and acetone have been mentioned. The market into Europe is busier with many small parcels noted. Rates have firmed, with 3,000-ton parcels from Korea to Antwerp-Rotterdam-Amsterdam seeing levels from $80/t-$95/t. A base oil load of 7,000 tons from Korea to Antwerp-Rotterdam-Amsterdam was apparently being worked in the mid $70s/t.

It is still pretty active on the India and the Middle East Gulf regional market, with plenty of chemicals traffic. Base oils are moving steadily out of Yanbu and Jeddah and there has been some fixing from Al Ruwais, U.A.E., too. The eastbound market is rather slow though, apart from some larger requirements out of Iran and the occasional 10,000-ton cargo of paraxylene from Mangalore, India. Traders have been looking to sell methanol into China too, but rate ideas are very competitive.

Westbound is still sluggish. Several attempts are being made to ship methanol to Europe and Turkey. Caustic cargo of 15,000 tons was booked Iran to Turkey. Benzene amounting to 6,000 tons concluded from Yanbu, Saudi Arabia, to Spain and more benzene was seen enquiring for a shipment from India to Antwerp-Rotterdam-Amsterdam.

Adrian Brown is a senior market analyst for chemicals and base oils with SSY Shipbrokers, London, can be reached at fix@ssychems.com or +44 12 0750 7507. Information about SSY can be found at www.ssyonline.com. In the Houston office, Panos Giannoulis of SSY’s Chemical Tanker Department can be reached directly at panos@ssychems.com or +1 (713) 652-270 and Jordi Maymi in Singapore can be reached at +65 6854 7127.