Where Did Bunker Fuel Prices Head in Week 20?
On May 18, 2017, the average bunker fuel price was ~$339 per ton—compared to $327 per ton in the previous week.
Aframax rates on the Caribbean route rose from $6,929 per day on May 12, 2017, to $21,379 per day on May 19, 2017.
In week 20, which ended on May 19, 2017, the BDTI (Baltic Dirty Tanker Index) rose from 741 to 785. Most stocks traded in red in week 20.
Although lower alumina prices might not immediately lead to a decline in aluminum prices, they certainly could limit aluminum’s upside.
If Chinese aluminum demand surprises on the downside, we could see aluminum markets in a surplus this year.
China’s aluminum demand is expected to be strong this year. Alcoa raised its 2017 global aluminum demand forecast to 4.5%–5.0% from its previous guidance.
China produced ~2.76 million metric tons of aluminum in April—a YoY increase of 7.6%. Its production has risen 12.0% YoY in the first four months of 2017.
Aluminum has outperformed both copper and zinc in 2017—it has built on last year’s gains. As of May 23, aluminum has risen ~14.0% this year.
Alcoa reached a closing high of $38.54 on February 14 before it saw selling pressure. The slide in its stock coincided with Arconic’s stake sale in Alcoa.
Genesee & Wyoming’s (GWR) European carloads fell 9.1% YoY (year-over-year) in April 2017. GWR’s other-than-coal carloads fell 8.2% on a YoY basis in April 2017.
Canadian Pacific Railway’s (CP) total carloads rose 24.7% in the week ended May 13, 2017. The company hauled more than 32,000 railcars in the week.
In April 2017, Genesee & Wyoming’s (GWR) North American traffic slightly expanded by 1% YoY (year-over-year). The company hauled ~126,000 railcars in April 2017.
Canadian National Railway moved more than 50,100 containers in the 19th week of 2017, compared to the nearly 40,900 containers it moved in the corresponding week of 2016.
Since January 1, 2017, Canadian National Railway’s (CNI) volumes have risen the most YoY (year-over-year) among Class I railroad companies.
In the past few weeks, Kansas City Southern (KSU), the smallest Class I railroad company in the United States, has seen its intermodal traffic slow.
In the week ended May 13, 2017, Kansas City Southern’s (KSU) total railcars rose 10.4% compared to the corresponding week of 2016.
In the 19th week of 2017, BNSF Railway’s (BRK-B) overall intermodal traffic rose 6.3% YoY (year-over-year) to ~101,000 containers and trailers.
In the week ended May 13, 2017, Union Pacific (UNP) hauled ~73,000 containers and trailers, 2.2% more than it did in the corresponding week of 2016.
BNSF Railway operates in the Western United States and competes primarily with Union Pacific (UNP). Its total railcars for the week ended May 13, 2017, rose 11.6% year-over-year.
In the Western United States, Union Pacific (UNP) competes with BNSF Railway, which is owned by Berkshire Hathaway (BRK-B).