Navigating Market Waves - Insights on Carbon Auctions, Cape Rates, and Steel Market

And how the US strategic petroleum reserve affects fuel oil market

Welcome to the latest episode of this FIS podcast which this week is delving more deeply into the carbon market!

"We've created a solution to the whole problem and we've created two transactions, so now the market will know that there's been two transactions, so the market has now got some enthusiasm about that." - Theo Goulios

Do you want to stay ahead of the game in the commodities industry and make informed business decisions? 

Are you looking for ways to boost your understanding of market factors and their potential implications? Look no further.

Our esteemed speakers this week - Theo Goulios, Archie Smith, James Robinson, Kerry Deal, and Joshua Stern - are here to share insights with you.

Silent auctions

In this captivating episode of the Freight Up podcast, our guest, Theo Goulios the Head of Carbon at FIS, introduces a novel approach to market liquidity in the often-stagnant vulture carbon market - silent auctions. He details how this idea, sparked by a problem in the OTC market, has been a game-changer for both buyers and sellers by taking the anxiety-inducing element of price out of the equation.

We delve into how this tactic has fostered the creation of successful transactions and reinvigorated market interest. But don't think silent auctions are a one-size-fits-all solution - our expert highlights why it's specific to the current market conditions.

Short-term Bounce

There is potential for a short-term bounce in EU HRC prices due to available material on a spot basis. Understanding the factors leading to this short-term bounce and closely monitoring the situation can help professionals in the commodities industry make informed business decisions. Learn what might happen if there isn't enough material going into Southeast Asia!

Freight Update

The shipping and freight industry faced challenges due to the global pandemic and various countries' COVID-19 restrictions. Kerry Deal picks us up on the latest regarding the impact of COVID-19 restrictions on container movements and the seafaring industry. He also talks us through the influence of supply chain disruptions and seasonal congestion on shipping as the year progresses.

Iron Ore Update

The 2021 iron ore market has been affected by changes in China's environmental policies, causing the shutdown of inefficient and high-polluting steel mills.

These changes, combined with the possibility of lower iron ore prices due to seasonal production slowdowns, make it essential for professionals in the commodities industry to stay informed on market trends and their potential global impact.

Our own James Robinson discussed the mixed week that the iron ore market experienced due to the concerns surrounding China's property market. 

The key moments in this episode are:

00:00:00 - Introduction 00:00:46 – FI Se Silent Auction 00:08:36 - Carbon Desk Update 00:08:51 - Fuel Oil Market Update 00:16:13 - Sleepy Steel Market 00:13:28 - Impact of Sing 0.5 Crack on High Five Spread 00:14:03 - EIA Stockpile Report and US Fed Meeting 00:14:47 - Iron Ore Update 00:19:35 - Freight Update 00:25:30 - Steel Update 00:27:34 - Little downstream demand 00:28:13 - Interest in EU HRC contract 00:28:56 - Chinese steel and prices 00:29:26 - Short-term bounce