Fortunes may have been made this week as global equity markets plunged but there is plenty of evidence that traders see this week’s events as a bump rather than a hole.
After Monday’s general carnage, capesize paper made some early prompt gains Tuesday before retracing into a choppy market of bottom-picking, just off the highs. Negative thereafter but with some buying support and traders putting fresh longs hoping the market is close to the bottom.
Indices continued to slipped as the week ended but falls were not that dramatic and some improved levels were paid – indeed the curve rose in something of a mini rally that many hope is a sign of better things to come.
Volatile on panamaxes too with early selling putting the curve under pressure but there was no collapse as capes led the market back up. Atlantic activity remained sluggish and paper felt sentiment driven – hardly surprising - and physically that was negative.
A sharp drop on the index at week’s end saw September and Q4 sold off but further out sellers were less aggressive with reasonable support evident. Physical levels in both basins continued to erode but with capesize paper apparently turning around sellers showed some hesitancy to chase.
Supramax paper saw negative reaction too but also a small bounce with momentum on with Cal 16 and Q4 but activity remained limited. The negative tone seemed to prevail with poor numbers and a softer trend, but again in less volume as the small ships watched the large ones – and like everyone else wondered what’s next.
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