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 voluntary 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 about carbon auctions, cape rates and the steel market 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