Ton Mile Trader

IMAREX - ASIAN CLEAN TANKER FFA REPORT

6 July, 2009

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Clean Tanker FFA Summary:

TC4 (MR SG-JP 30KT) Paper was again given lower with 83 and 82.5 transacting in small clips through the evening. Jul/Aug spread traded -6 and Aug was done at 88 by itself later. Jul left 82 at 83, Q3 87 at 90 and Q4 82 at 98 with one buyer looking for 2h at 90.

TC5 (LR1 AG-JP 55KT) The day started with -3 given on legs for Jul/Aug, 90 & 93 given respectively. In a fast frenzy Jul was given as low as 87 followed by Q3/Q4 legged at -8 with 90 & 98 sold respectively. By late day the market had recovered from these levels slightly. Jul was 87 at 92, Q3 89 bid and Q4 97 bid with a quiet offer side. Volume was relatively thin on the day.

TC11 (TRIAL SKOR–SING 40KT) This route saw another day of sharp decline with 28¢ lopped off to $8.38. This is down from a peak of $9.20/mt on the 25^th of Jun.

For Platts TC4 & TC5 Spot please refer to the IMAREX trading screen.

Physical market talking levels:

MR: Sing/Jpn estimate W70-75 Mixed signals are coming from the MR market. Last weeks rumor of Santan Japan at W75 signaled a slightly weaker Singapore market, but the end of the week also heard that the tonnage list in the AG had thinned considerably. There has been talk of LR cargoes splitting, but still it’s not enough to bring about a rise in rates.

LR1: Ag/Jpn estimate W92 Slipping? Late Friday the DELIGHT VICTORIA was heard on subs to Idemitsu at W90. This has subsequently been denied.

LR2: Ag/Jpn estimate W84 Both Platts & the Baltic had this rate in decline by the end of last week with just one AG cargo reported and unconfirmed at that. Market talk has been about vessels returning from storage to the spot market, but at least two more were enlisted for such duty last week as well. At the end of last week, the naphtha arb from Europe to Japan was looking workable, so any vessels open nearby should find ready employment.

Reported fixtures: