Russian coal exports to Europe up nearly 50% ahead of ban - Jefferies

Nordic American Tankers

31/05/2022 07:14

** Russian coal exports to Europe surged by nearly 50% in
May, as the region prepares for a ban to come into effect in the
late summer, says Jefferies in a weekly shipping report
    ** The EU, whose coal ban becomes fully effective from the
second week of August, had banned new contracts in early April
in response to alleged war crimes committed by Russian forces in
the Ukrainian town of Bucha  urn:newsml:reuters.com:*:nL5N2W623I
    ** Russian volumes were around 11% higher year-on-year
between February and April, says the broker, but this rose to
hit nearly 50% this month ahead of the EU ban 
    ** Average spot rates for Capesize shipping - the largest
dry cargo ships which are too big to cross the Suez or Panama
canals - fell by nearly two-fifths from a week earlier, it adds 
    ** "Rates should stabilize and increase as coal starts to
move East to India and China," says Jefferies, warning of
volatile rates near-term as European orders end ahead of the ban
    ** Frontline  FRO.OL , Scorpio Tankers  STNG.N  and Diana
Shipping  DSX.N  outperformed the broker's shipping index last
week, it adds, while NAT  NAT.N , Grindrod and  GRIN.O  and
Navigator  NVGS.N  fared less well

 (Reporting by Sarah Morland)
 ((sarah.morland@tr.com
mailto:sarah.morland@thomsonreuters.com))