Tanker Rates Down This Week, Here's Why

Tanker rates were mostly down last week. In a new report, Credit Suisse analyst Gregory Lewis dug into the activity behind the numbers.
 

According to Lewis, June loadings are underway, with VLCC spot activity out of the MEG up roughly 40 percent week-over-week (W/W).
 

About 40 oil tankers are being help up at the French port of Fos-Lavera due to the port strikes in France.

LNG imports in China climbed 22 percent year-over-year (Y/Y) in April and are now up about 19 percent year-to-date. At the same time, LNG imports in Japan were down 3.0 percent in April and are down 5.0 percent now in 2016.
 

This week, Egyptian Natural Gas Holding Company intends to issue a tender for 10 LNG cargoes for delivery between July and August. The company also mentioned the possibility of 10 additional cargoes in the near future.

The World Steel Association reported global steel production was down 0.5 percent Y/Y in April and is down around 3.0 percent year-to-date. Chinese steel production was up 0.5 percent in April but remains down about 2.0 percent in 2016.

Related Link: Stakes Have Never Been Higher Headed Into Annual U.S.-China Economic Meeting

Chinese coal imports fell about 6.0 percent in April and are now down 2.5 percent year-to-date.

Credit Suisse maintains Outperform ratings on the following stocks:
Dynagas LNG Partners LP DLNG
Euronav NV Ordinary Shares EURN
GasLog Partners LP GLOP
Golar LNG Limited (USA) GLNG
Navios Maritime Midstream Partners LP NAP
Scorpio Tankers Inc. STNG
Tsakos Energy Navigation Ltd. TNP

Disclosure: the author holds no position in the stocks mentioned.