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Tuesday, 11 June 13
OUTLOOK FOR CAPESIZES LOOKS GRIM, DESPITE FALLING IRON ORE PRICES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
 Things aren't looking all that rosy for the dry bulk market, despite a stronger volume of iron ore imports during the months of March and April, as freight rates haven't had that necessary push to jumpstart. According to the latest monthly report from shipbroker Intermodal, "this has been reflected in the continuous drop in price for the commodity which was on an almost free-fall course from its latest price peak of $158.9 per dry ton reached on the 20th of February. The significantly slower economic momentum of China has slashed demand for this development-linked commodity, dragging both the price as well as the freight cost to multi-month lows. This is set to continue for most of the year, with destocking still a central strategy in China", the report said.
According to Mr. George Lazaridis, Research Analyst with Intermodal, "the industry view tends to be that for the long-run, even these bottom-of-the-cycle prices are much higher than what most analysts believe should be the prevailing level. This leads to an expectation of surplus production which eventually could lead to problems in ship-ping, as sources such as South Africa increase their stake in China’s iron ore imports, slashing in turn tonne-mile demand for Capes.
The question that is of more vital importance and an ongoing topic of conversation this year amongst shipping circles is; When can we expect an improvement in market fundamentals?
The answer is looking somewhat more worrying for Capes. It will take a lot more than just cheap commodity prices to get things going again. The Chinese slowdown does not seem to be a temporary hiccup and as such people should be taking it more serious", he noted.
With China accounting last year for 47% of global steel production, there is no debate as to who drives the demand for Capes. "Being heavily dependent on Chinese heavy industry production and investment in infrastructure any further slowdown in economic growth has an imminent impact on freight rates for this sector. Without this driving demand it is hard for this segment to see the sharp rise in freight rates and secondhand prices that many had hoped we would reach within this year. Nevertheless it’s not all black. Baosteel sees a 1-2 pct increase in Chinese steel production this year. The year-to-date increase in output of 7% shows a promise for improved markets in the final quarter, while at the same time it would take a substantial slow-down in output in the second-half for there to be a year-on-year drop in Chinese steel output", Lazaridis said.
With all the above in mind a few questions arise, like for instance, where is the basis for all this business being reported in the Capesize market? Is there a sense that previous bullish sentiment for this size group is leading new investment without there being a real demand for further fleet growth? Could this lead to further dragging out of sub-performing markets?
According to Lazaridis' viewpoint, "over the past couple of months we have seen the majority of trading sessions being reported at average freight figures bellow what is expected for most owners to cover OPEX. Even on some of the more positive trading days, TCE increases are temporary and usually attributed to momentary decreases in bunker costs as well as slow steaming throughout the fleet which helps increase what little extra earnings owners can squeeze out of the current market rates. The counter argument to this can be found in part in the wisdom of old. Through most shipping cycles owners have usually taken a long-term position hoping to make high gains through the cycle rather than only looking to act during periods where the market is on the rise. If they waited for the later we would not have any ship owners left. This may explain activity in the secondhand market however things are very different when it comes to newbuildings. Capesize newbuilding designs have not had the same overhaul in performance that we have seen in other size segments. So why are owner’s risking of drowning the market with further ordering when there are plenty of well-priced secondhand units available. It seems to be yet again the case of easier financing, respectively lower prices, easi-er payment terms and forward delivery that have the upside of even gaining in value before you have made full payment. As promising as all these sound to a potential buyer, a word of caution to the brave, “as you sow, so shall you reap”, he concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Friday, 04 September 20
IN A DEEPENING DEBT HOLE OF $34 BILLION, INDONESIA’S PLN MUST STOP DIGGING - IEEFA
The utility has added IDR100 trillion in debt annually for the last five years
Utilities globally started changing the way they do business ye ...
Friday, 04 September 20
KOMIPO INVITED BIDS FOR AUSTRALIAN MIN 5,700 NCV COAL FOR NOVEMBER
COALspot.com: Korea Midland Power Co. Ltd, has issued an International tender for 260,000 MT Min.5,700 kcal/kg NCV coal November, 2020 loading. Acc ...
Thursday, 03 September 20
BRINGING SERVICES OF FTCCI CLOSER TO THE EXPORTERS AT GMR AIR CARGO COMPLEX AT SHAMSHABAD
Press Release: “FTCCI Trade Facilitation Services at your doorstep now” says J.S. Chandrashekar, IRS., Principal Commissioner of Custom ...
Thursday, 03 September 20
CHINA'S BENCHMARK POWER COAL PRICE REMAINS FLAT - XINHUA
China’s benchmark power coal price remained flat during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Wednesday, 02 September 20
COAL PRODUCTION FALLS 7% IN APR-AUG; OFF TAKE DIPS 13.4% - FINANCIAL EXPRESS
In the month of August coal off take also increased 9.3% y-o-y to 44.34 MT as compared with 40.57 MT in the same period last year.
C ...
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- Thai Mozambique Logistica
- Pendopo Energi Batubara - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Kartika Selabumi Mining - Indonesia
- Mercator Lines Limited - India
- Timah Investasi Mineral - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Ministry of Finance - Indonesia
- Bharathi Cement Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Meenaskhi Energy Private Limited - India
- Malabar Cements Ltd - India
- Electricity Authority, New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Siam City Cement PLC, Thailand
- Sindya Power Generating Company Private Ltd
- Edison Trading Spa - Italy
- Georgia Ports Authority, United States
- Attock Cement Pakistan Limited
- Grasim Industreis Ltd - India
- Coastal Gujarat Power Limited - India
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- Krishnapatnam Port Company Ltd. - India
- Sree Jayajothi Cements Limited - India
- Barasentosa Lestari - Indonesia
- PNOC Exploration Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sinarmas Energy and Mining - Indonesia
- The Treasury - Australian Government
- Siam City Cement - Thailand
- Thiess Contractors Indonesia
- Videocon Industries ltd - India
- Star Paper Mills Limited - India
- Kapuas Tunggal Persada - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Mines - Canada
- LBH Netherlands Bv - Netherlands
- Aditya Birla Group - India
- International Coal Ventures Pvt Ltd - India
- Singapore Mercantile Exchange
- Indian Oil Corporation Limited
- Indian Energy Exchange, India
- McConnell Dowell - Australia
- Banpu Public Company Limited - Thailand
- Port Waratah Coal Services - Australia
- Sakthi Sugars Limited - India
- Cement Manufacturers Association - India
- Kepco SPC Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Merrill Lynch Commodities Europe
- The State Trading Corporation of India Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Australian Commodity Traders Exchange
- Kobexindo Tractors - Indoneisa
- Larsen & Toubro Limited - India
- Global Green Power PLC Corporation, Philippines
- London Commodity Brokers - England
- Jindal Steel & Power Ltd - India
- Oldendorff Carriers - Singapore
- Agrawal Coal Company - India
- Straits Asia Resources Limited - Singapore
- Coalindo Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Planning Commission, India
- Tamil Nadu electricity Board
- PowerSource Philippines DevCo
- Kohat Cement Company Ltd. - Pakistan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- SMG Consultants - Indonesia
- Global Business Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Altura Mining Limited, Indonesia
- Electricity Generating Authority of Thailand
- Semirara Mining Corp, Philippines
- Bangladesh Power Developement Board
- Madhucon Powers Ltd - India
- Sojitz Corporation - Japan
- Energy Link Ltd, New Zealand
- Parry Sugars Refinery, India
- Bukit Asam (Persero) Tbk - Indonesia
- Chettinad Cement Corporation Ltd - India
- Lanco Infratech Ltd - India
- Globalindo Alam Lestari - Indonesia
- Minerals Council of Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Borneo Indobara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Bhatia International Limited - India
- Indika Energy - Indonesia
- VISA Power Limited - India
- Essar Steel Hazira Ltd - India
- Jaiprakash Power Ventures ltd
- Iligan Light & Power Inc, Philippines
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Bulk Trading Sa - Switzerland
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- Bhushan Steel Limited - India
- Coal and Oil Company - UAE
- Marubeni Corporation - India
- The University of Queensland
- Jorong Barutama Greston.PT - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Billiton Holdings Pty Ltd - Australia
- White Energy Company Limited
- Manunggal Multi Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Independent Power Producers Association of India
- Alfred C Toepfer International GmbH - Germany
- Ind-Barath Power Infra Limited - India
- Parliament of New Zealand
- Petron Corporation, Philippines
- Heidelberg Cement - Germany
- Posco Energy - South Korea
- Cigading International Bulk Terminal - Indonesia
- Wood Mackenzie - Singapore
- Sical Logistics Limited - India
- Romanian Commodities Exchange
- Africa Commodities Group - South Africa
- Indo Tambangraya Megah - Indonesia
- Xindia Steels Limited - India
- Vizag Seaport Private Limited - India
- Ambuja Cements Ltd - India
- Carbofer General Trading SA - India
- Energy Development Corp, Philippines
- Meralco Power Generation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Savvy Resources Ltd - HongKong
- Kaltim Prima Coal - Indonesia
- Antam Resourcindo - Indonesia
- India Bulls Power Limited - India
- GMR Energy Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Makmur.PT - Indonesia
- Commonwealth Bank - Australia
- Makarim & Taira - Indonesia
- European Bulk Services B.V. - Netherlands
- Medco Energi Mining Internasional
- GAC Shipping (India) Pvt Ltd
- Kalimantan Lumbung Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Tata Chemicals Ltd - India
- Sarangani Energy Corporation, Philippines
- Mintek Dendrill Indonesia
- Goldman Sachs - Singapore
- ASAPP Information Group - India
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- TeaM Sual Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Rio Tinto Coal - Australia
- Indonesian Coal Mining Association
- Intertek Mineral Services - Indonesia
- Formosa Plastics Group - Taiwan
- Interocean Group of Companies - India
- GVK Power & Infra Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Kideco Jaya Agung - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Indogreen Group - Indonesia
- CNBM International Corporation - China
- Mjunction Services Limited - India
- PetroVietnam Power Coal Import and Supply Company
- South Luzon Thermal Energy Corporation
- Asmin Koalindo Tuhup - Indonesia
- Orica Mining Services - Indonesia
- Eastern Energy - Thailand
- Rashtriya Ispat Nigam Limited - India
- Vedanta Resources Plc - India
- Central Electricity Authority - India
- SMC Global Power, Philippines
- OPG Power Generation Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Australian Coal Association
- Trasteel International SA, Italy
- Binh Thuan Hamico - Vietnam
- Central Java Power - Indonesia
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Wilmar Investment Holdings
- Power Finance Corporation Ltd., India
- Baramulti Group, Indonesia
- Karaikal Port Pvt Ltd - India
- PTC India Limited - India
- Aboitiz Power Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Economic Council, Georgia
- ICICI Bank Limited - India
- Dalmia Cement Bharat India
- Karbindo Abesyapradhi - Indoneisa
- Renaissance Capital - South Africa
- Samtan Co., Ltd - South Korea
- Eastern Coal Council - USA
- Directorate General of MIneral and Coal - Indonesia
- Uttam Galva Steels Limited - India
- Bhoruka Overseas - Indonesia
- San Jose City I Power Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Chamber of Mines of South Africa
- Gujarat Sidhee Cement - India
- Ministry of Transport, Egypt
- Anglo American - United Kingdom
- Kumho Petrochemical, South Korea
- IHS Mccloskey Coal Group - USA
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