3 week: Russian River, Azov Sea, Caspian Sea; Coaster shipments
The market did not fall at the beginning of January, as it usually happens every year. The introduction of export restrictions and duties since mid-February has led to a significant increase in new sales and shipments of grain. Also, the long downtime of ports and ships in December has resulted in a situation when receivers of processors in Turkey have faced the shortage of raw materials. As a result, the rate on the basis of the voyage from Rostov to the Black Sea increased to USD 25-26 per ton of wheat. There is also remains the dynamics of demand for the river-sea type tonnage.
The situation with shipments from the Ukrainian deep-water ports has not yet been fully formed. In Russia, the introduction of export duties on wheat in a certain period of time left Russian grain outside of competitive prices, as demonstrated by the GASC tender at the end of December. However, other exporting countries in their turn raised the price ideas, and the offers at the last tender were close already. Shipments in handy and ultra parcels are performed under the frame of tenders. Though, the parties cannot reach close figures on the coasters market, where the participants of deals are more dependent on the response time of the final receivers’ markets and on their readiness for high prices for raw materials. Shippers do not ignore the dynamics of price growth from tenders’ reports; therefore, Traders try to ship the parcels sold before the last hike in raw material prices on the agreed date. Charterers offer less than USD 18 per ton from Kherson to Marmara for new sales.
Interest in Russian grain with shipment dates until mid-February is quite high in the region; it is a key factor that will shape the strategy before the new grain season. Shippers and producers are reducing prices in a bid to have time to sell and ship goods before mid-February. Traders who ship from other countries are forced to adjust in the formation of their offers for buyers. Therefore, the situation with coasters in the Black Sea will remain at the same level as it is now, before the introduction of new restrictions, so the fall in rates is not yet expected.