Commodity: Urea, Coal, En 590, Pellets

2023-04-30 11:12:34 A recent order by US authorities for an Iranian crude oil tanker to redirect towards the US is believed to have been the trigger for Iran’s capture of a US-bound tanker on Thursday. Three individuals who have been briefed on the situation have disclosed that the US has taken steps to intervene with a ship loaded with Iranian crude, initially heading for China, as it seeks to step up its enforcement of sanctions on Tehran. According to sources, the US Department of Justice (DoJ) seized the Suez Rajan tanker under a court order with the cooperation of at least one company associated with the vessel. The Suez Rajan was the subject of scrutiny since last year when it was accused of taking on a cargo of Iranian oil, which was intended for China, from another ship near Singapore. The DoJ declined to comment on the recent seizure of the tanker.

The US action towards the Suez Rajan has shed new light on Iran’s decision to capture the Advantage Sweet tanker of Kuwaiti crude oil that was chartered by Chevron. A US official has claimed that Thursday’s seizure appears to be in retaliation for a prior US seizure of Iranian oil, which Iran recently attempted to retrieve but failed. Iran has been known to capture tankers as retaliation for western countries targeting its crude oil shipments. In 2019, Iran seized two British-flagged tankers shortly after the UK impounded an Iranian vessel that had stopped at Gibraltar en route to Syria. Last year, Iran also took two Greek-flagged vessels in the Strait of Hormuz after Greece had allowed the US to drain the cargo of an Iranian tanker in Greek waters. Ochish/sharhlash

2023-04-25 09:31:02 Aviation fuel Avgas 100LL is available in bulk and in metal barrels. Fuel quality ASTM D910 latest spec.

Minimum order 18MT in wet container or 22MT in metal barrels.

Maximum monthly order 250MT.

Two weeks waiting time before order dispatch.

FOB and CIF prices, direct service to Alexandria, Dubai, Istanbul, Santos, Durban as well as many ports in India, China and Asia Pacific.

Direct contract with the Manufacturer.
Export Manager
Alina Balaneva
Telegram @Aviatopfuel Ochish/sharhlash

2023-04-21 10:11:02 $20M worth of gold stolen from Pearson airport (Canada)

Police are currently investigating a heist that took place at Pearson International Airport, the busiest airport in Canada, located just outside of Toronto. Thieves made off with a cargo container containing over C$20 million ($14.8 million) worth of gold and other valuable items, according to Peel Regional Police.

The theft was reported after a plane carrying the cargo landed at Pearson on Monday, as confirmed by the Royal Canadian Mounted Police to Bloomberg. Gold mined in Canada often passes through Pearson, making it a prime target for thieves.

The Toronto Sun initially reported that the heist included 3,600 pounds of gold, which would be worth over $100 million at current prices. The newspaper also suggested that the theft was likely linked to organized crime, citing an unnamed police source. However, a representative for the Peel police force clarified during a news conference that the stolen container held other high-value items in addition to gold, with a total estimated value slightly above C$20 million.

Police are actively investigating the incident, and authorities are working to determine how the thieves were able to access the cargo holding area and carry out such a significant heist. No further details have been released regarding potential suspects or leads in the case. Ochish/sharhlash

2023-04-20 14:10:54 The global aviation gasoline (Avgas) market is projected to reach $18.8 billion by 2031, with a CAGR of 4.2% from 2022 to 2031, according to a report by Forbes magazine. Avgas is commonly used as fuel for piston engine aircraft and is highly flammable. The market has seen a shift towards a single grade, Avgas 100/130, due to declining demand in other grades.

One of the major factors driving the aviation gasoline market is the utilization of small aircraft for various purposes. The demand for piston engine aircraft is expected to grow in sectors such as lеarning for flight schools, research expeditions, island tourism, aviation rallies, aviation safaris, rescue missions, emergency medical services, private flights, firefighting, and agricultural crop spraying.

The demand for light aircraft for activities such as sightseeing, photography, and tourism has also increased, leading to a rise in sales of piston engine aircraft. Sporting activities such as aerobatics, air rallies, and air racing have also gained popularity, further driving the demand for aviation gasoline. The General Aviation Manufacturers Association (GAMA) reported an increase in sales of piston engine aircraft from 1,137 in 2019 to 1,213 in 2021.

The aviation gasoline market is segmented by grade type, aircraft type, application, and region. The major grade types include Avgas 100, Avgas 100 LL, and others, with Avgas 100/130 being the dominant grade in the market. In terms of application, the market is categorized into civil, military, sports and recreational, and others.

Geographically, North America dominated the aviation gasoline market in 2021, but Asia-Pacific is expected to grow at a higher CAGR due to increasing demand from emerging economies in the region. Ochish/sharhlash

2023-04-10 10:56:01 Oil prices saw their third weekly gain after the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, announced production cuts, and US inventories decreased. Brent, which is used as the benchmark for two-thirds of the world's oil, closed 0.15% higher at $85.12 per barrel, while West Texas Intermediate, the gauge that tracks US crude, was up 0.11% at $80.70 per barrel. Both benchmarks increased by more than 6% for the week. OPEC+ members Saudi Arabia, the UAE, Iraq, Kuwait, Oman, and Algeria announced that they would introduce voluntary oil production cuts of 1.16 million barrels per day from May until the end of this year to support the stability of the oil market. Russia has also said that the 500,000 barrels per day cut it is implementing from March to June would continue until the end of the year. Edward Moya, senior market analyst at Oanda, said that gasoline demand in the US is impressing and if Americans have big summer vacation plans, that could help drive $100 oil calls.

However, US data suggests that the world's largest economy may be headed towards a recession. The US services sector slowed more than expected last month, and a measure of prices paid by services businesses fell to the lowest in nearly three years, according to the latest survey by the Institute for Supply Management. US job vacancies in February also dropped to their lowest in nearly two years, fueling concerns of a recession in the world's largest economy. Mr. Moya added that it seems WTI crude oil isn't going to budge from the $80 a barrel level even as the headlines suggest the US economy is quickly weakening. Despite this, the outlook for China is still rather optimistic and that could easily send oil prices $5 higher if we start to see that economy pick up. Ochish/sharhlash

2023-03-26 12:36:01 Nigeria Struggles to Secure Buyers for Its Crude Oil Amidst Strikes and Maintenance in European Refineries

Nigeria, one of the major crude oil exporters in the world, is facing a significant challenge in finding buyers for its oil due to recent strikes in the French refining sector and seasonal maintenance at refineries across Europe. This has resulted in a decrease in Nigerian sales and left between 20 and 25 shipments of crude oil for loading in April still seeking buyers, with each shipment comprising approximately one million barrels of crude oil.

Bloomberg's tanker tracking data reveals that France, which has traditionally been one of Nigeria's largest buyers of crude oil, has only received an average of 110,000 barrels per day over the past year. This represents a major setback for Nigeria's oil industry, which heavily relies on exports to generate revenue. Ochish/sharhlash

2023-03-24 15:39:01 Trafigura Predicts Record High Copper Prices This Year Due to Strong Chinese Demand and Low Inventories

Copper prices are expected to reach a record high this year due to a surge in Chinese demand, warns Trafigura, the world's largest private metals trader. With global inventories of the metal at their lowest seasonal level since 2008, there is little reserve to meet rising demand from China, risking a depletion of stocks. The benchmark three-month copper contract is trading at $9,000 a tonne, up 30% from its lowest point in the aftermath of Russia's SWO in Ukraine. Kostas Bintas, co-head of metals and minerals at Trafigura, predicts copper prices will surpass the $10,845 a tonne peak reached in March 2022 and may even reach $12,000 a tonne in the next 12 months.

Goldman Sachs projects that global copper inventories will run out by Q3 this year if demand in China continues to grow. Chinese demand for copper rose 13% YoY in February as activity picked up following the Lunar New Year. Copper prices are projected to reach $10,500 a ton in the short term and $15,000 by 2025.

While copper has risen 6% this year, zinc and nickel have fallen due to overall financial market weakness. Copper is critical to decarbonization efforts and is in high demand due to industrial clean-energy policies in the US and Europe based on electrification. But mining executives say it is increasingly difficult to ramp up new supplies of copper due to deteriorating copper grades. S&P Global estimates that 40 million tons of copper will be consumed annually by 2030, up from 25 million tons in 2021.

The depletion of commodity inventories could lead to price volatility and cause problems for producers, traders, and consumers in finding enough cash to cover margin requirements and avert a liquidity crisis. BHP, the world's largest mining company, believes new supplies from Peru, Chile, and the DRC will ensure a surplus in the copper market over the next two to three years. Ochish/sharhlash

2023-03-22 09:09:01 The global oil market has been facing several challenges in recent years, including the ongoing military conflict in Ukraine and the imposition of Western sanctions on Russia. However, a new supply chain has emerged to keep Russian oil flowing around the world. Traditional Western carriers have stopped supplying Russian oil due to either protest against the conflict or the threat of sanctions, creating a need for firms such as Gatik and Fractal to service Russian cargoes.

These firms, which manage $2 billion worth of tanker assets, have built a fleet that transports millions of barrels of Russian oil around the world. Gatik Ship Management and Fractal Shipping are part of a large network of maritime operations that have become popular since the outbreak of the military conflict in Ukraine.

According to industry data compiled by Bloomberg, many of both firms' vessels are serviced by one of the 13 member organizations of the American Club, an international group headquartered in New York. The American Club Chief Operating Officer Daniel Tedros confirmed that his organization services both firms' vessels, adding that they have both provided documentation of oil purchases at G7 ceiling prices.

However, there is concern that the true ownership of these vessels is often not disclosed. While Gatik and Fractal are not the ultimate owners of the tankers, they operate the vessels on behalf of other companies, whose details are often unclear. This lack of transparency makes it difficult to understand who actually owns the assets.

Despite these challenges, the need for firms such as Gatik and Fractal has increased, and they have become a crucial part of the supply chain that allows for the transportation of Russian oil. While the global oil market faces ongoing challenges, these new players have helped to keep Russian oil flowing around the world. Ochish/sharhlash

2023-03-04 11:18:01 Nornickel, the world's largest refined nickel and palladium producer, has been selling metal to China this year based on prices from both the London Metal Exchange (LME) and the Shanghai Nickel Futures Exchange (SHFE), according to anonymous insiders. Volumes based on SHFE prices are paid in renminbi, indicating that the company is looking to increase sales to China this year to make up for the loss of the European market. The company supplies about 7% of the world's nickel production and hopes to tie long-term contracts to Shanghai prices. Negotiations for long-term contracts are ongoing and could include a combination of LME and SHFE prices.

China, as the world's largest consumer of commodities, has long sought more control over pricing. Much of the world's commodity trade is still based on global benchmark prices in dollars, but some time ago Chinese authorities suggested switching to SHFE prices because they consider them a more stable benchmark than the LME. Last year the LME suspended nickel trading for a week because of a massive squeeze on short positions.

Although the U.S. and U.K. imposed sanctions against Potanin, Nornickel's main shareholder and president, the company and its exports were not affected by the bans and restrictions.

In January, the company announced that it would carry out maintenance, postponed last year due to problems with equipment supplies. As a result, nickel production is expected to be down 4-5% from 2022. The company will also change its logistics chain, targeting more friendly countries, primarily China, Turkey, Morocco and Arab countries.

Overall, Nornickel's decision to sell metal based on LME and SHFE prices is a strategic step aimed at strengthening its position in the Chinese market. Ochish/sharhlash

2023-03-04 10:11:33 The accumulation of Russian diesel on ships indicates that buyers are avoiding sanctioned fuel as the abnormally warm winter reduces demand
According to Kpler Inc. there are now 1.9 million barrels of Russian diesel in floating storage - the maximum since October 2020. The increase in stocks three weeks after EU sanctions took effect suggests that some cargoes shipped from Russian ports have yet to find buyers.

Such a surplus could be a lifesaver for global markets, which have been alarmed that the flow of fuel for refueling and heating will dry up because of the sanctions. Fears of shortages prompted European refineries to increase production to prepare for a winter that was warmer than usual, and suppliers imported huge amounts of fuel in anticipation of the EU ban on Russian imports. Diesel stocks at the Amsterdam-Rotterdam-Antwerp hub reached their highest level in two years.

Of course, some of the unloading difficulties may be weather-related, resulting in some cargoes being temporarily classified as floating storage. But it appears that downtime of ships with Russian cargoes off the coast of North Africa is due to other reasons. Ochish/sharhlash