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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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Wednesday, 19 August 20
COAL INDIA TRADE UNIONS DEFER DAY-LONG STRIKE: PTI
The unions had decided to go on strike against the commercial mining and the proposed divestment or buyback of shares of Coal India Ltd (CIL).
...
Wednesday, 19 August 20
MISC MARKS ITS MAIDEN FORAY INTO MAJOR DEEP-WATER PROJECT IN LATIN AMERICA WITH MERO 3 FPSO
MISC Berhad (MISC) is pleased to announce its acceptance of Letter of Intent (LOI) from Petróleo Brasileiro S.A. (Petrobras) for the provisi ...
Wednesday, 19 August 20
MARKET INSIGHT - GEORGE LAIOS | INTERMODAL
Since the Covid-19 outbreak, governments and central banks around the globe have been using their ammunition and stimulus packages to keep their ec ...
Wednesday, 19 August 20
INDIA SAW A SHARP DECLINE IN ENERGY COAL IMPORTS IN JANUARY - JUNE 2020; –27 PER CENT YOY - BHP
Energy coal prices were weak in the second half of financial year 2020, BHP says in its Economic and Commodity Outlook FY20.
Accordi ...
Wednesday, 19 August 20
COAL PRICES TO REMAIN SUBDUED THIS FISCAL AMID WEAK DEMAND, HIGH INVENTORY - THE HINDU BUSINESS LINE
Coal offtake is improving gradually as lockdown eases
Coal prices are expected to remain subdued to weak demand and high inventory l ...
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- Asia Pacific Energy Resources Ventures Inc, Philippines
- Baramulti Group, Indonesia
- PNOC Exploration Corporation - Philippines
- Planning Commission, India
- Mintek Dendrill Indonesia
- Formosa Plastics Group - Taiwan
- Kaltim Prima Coal - Indonesia
- Antam Resourcindo - Indonesia
- VISA Power Limited - India
- Global Coal Blending Company Limited - Australia
- Kalimantan Lumbung Energi - Indonesia
- Central Java Power - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Rio Tinto Coal - Australia
- Bhushan Steel Limited - India
- McConnell Dowell - Australia
- Miang Besar Coal Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Africa Commodities Group - South Africa
- Gujarat Mineral Development Corp Ltd - India
- Chamber of Mines of South Africa
- SN Aboitiz Power Inc, Philippines
- Vedanta Resources Plc - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Makarim & Taira - Indonesia
- SMG Consultants - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Commonwealth Bank - Australia
- Maharashtra Electricity Regulatory Commission - India
- GAC Shipping (India) Pvt Ltd
- Lanco Infratech Ltd - India
- London Commodity Brokers - England
- Thai Mozambique Logistica
- Tata Chemicals Ltd - India
- Chettinad Cement Corporation Ltd - India
- Mercuria Energy - Indonesia
- CNBM International Corporation - China
- Global Business Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Australian Coal Association
- Manunggal Multi Energi - Indonesia
- Borneo Indobara - Indonesia
- Orica Mining Services - Indonesia
- Indogreen Group - Indonesia
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- Xindia Steels Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GVK Power & Infra Limited - India
- Billiton Holdings Pty Ltd - Australia
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- SMC Global Power, Philippines
- Australian Commodity Traders Exchange
- Timah Investasi Mineral - Indoneisa
- Standard Chartered Bank - UAE
- OPG Power Generation Pvt Ltd - India
- Tamil Nadu electricity Board
- Ambuja Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Kumho Petrochemical, South Korea
- Bulk Trading Sa - Switzerland
- Indo Tambangraya Megah - Indonesia
- Edison Trading Spa - Italy
- ASAPP Information Group - India
- Aditya Birla Group - India
- Interocean Group of Companies - India
- Parliament of New Zealand
- Iligan Light & Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Bhatia International Limited - India
- Merrill Lynch Commodities Europe
- Coastal Gujarat Power Limited - India
- Bharathi Cement Corporation - India
- San Jose City I Power Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- New Zealand Coal & Carbon
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Intertek Mineral Services - Indonesia
- Uttam Galva Steels Limited - India
- Maheswari Brothers Coal Limited - India
- MS Steel International - UAE
- Ceylon Electricity Board - Sri Lanka
- Jindal Steel & Power Ltd - India
- Carbofer General Trading SA - India
- Cigading International Bulk Terminal - Indonesia
- Kobexindo Tractors - Indoneisa
- Salva Resources Pvt Ltd - India
- Coalindo Energy - Indonesia
- Attock Cement Pakistan Limited
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- Romanian Commodities Exchange
- Aboitiz Power Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- European Bulk Services B.V. - Netherlands
- Wood Mackenzie - Singapore
- Videocon Industries ltd - India
- Barasentosa Lestari - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Star Paper Mills Limited - India
- Cement Manufacturers Association - India
- Power Finance Corporation Ltd., India
- Eastern Coal Council - USA
- Gujarat Electricity Regulatory Commission - India
- Malabar Cements Ltd - India
- Mjunction Services Limited - India
- Agrawal Coal Company - India
- Mercator Lines Limited - India
- CIMB Investment Bank - Malaysia
- Savvy Resources Ltd - HongKong
- Sinarmas Energy and Mining - Indonesia
- Energy Link Ltd, New Zealand
- Port Waratah Coal Services - Australia
- Rashtriya Ispat Nigam Limited - India
- Singapore Mercantile Exchange
- TeaM Sual Corporation - Philippines
- Economic Council, Georgia
- Thiess Contractors Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Deloitte Consulting - India
- Posco Energy - South Korea
- PTC India Limited - India
- Dalmia Cement Bharat India
- TNB Fuel Sdn Bhd - Malaysia
- Pendopo Energi Batubara - Indonesia
- Independent Power Producers Association of India
- Alfred C Toepfer International GmbH - Germany
- Siam City Cement - Thailand
- White Energy Company Limited
- Bhoruka Overseas - Indonesia
- Grasim Industreis Ltd - India
- The University of Queensland
- Metalloyd Limited - United Kingdom
- Gujarat Sidhee Cement - India
- Ministry of Finance - Indonesia
- Bangladesh Power Developement Board
- Price Waterhouse Coopers - Russia
- Globalindo Alam Lestari - Indonesia
- Minerals Council of Australia
- Electricity Authority, New Zealand
- Straits Asia Resources Limited - Singapore
- Sakthi Sugars Limited - India
- Orica Australia Pty. Ltd.
- Bukit Baiduri Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Altura Mining Limited, Indonesia
- Semirara Mining Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- LBH Netherlands Bv - Netherlands
- Vizag Seaport Private Limited - India
- Anglo American - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Jaiprakash Power Ventures ltd
- AsiaOL BioFuels Corp., Philippines
- Kideco Jaya Agung - Indonesia
- Latin American Coal - Colombia
- Riau Bara Harum - Indonesia
- India Bulls Power Limited - India
- Meralco Power Generation, Philippines
- Heidelberg Cement - Germany
- Medco Energi Mining Internasional
- Sree Jayajothi Cements Limited - India
- Marubeni Corporation - India
- International Coal Ventures Pvt Ltd - India
- Ministry of Transport, Egypt
- Sarangani Energy Corporation, Philippines
- Indian Oil Corporation Limited
- Siam City Cement PLC, Thailand
- Ministry of Mines - Canada
- Therma Luzon, Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Larsen & Toubro Limited - India
- Wilmar Investment Holdings
- Binh Thuan Hamico - Vietnam
- Indonesian Coal Mining Association
- Bayan Resources Tbk. - Indonesia
- The State Trading Corporation of India Ltd
- Banpu Public Company Limited - Thailand
- Directorate General of MIneral and Coal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- Coal and Oil Company - UAE
- Neyveli Lignite Corporation Ltd, - India
- Oldendorff Carriers - Singapore
- Krishnapatnam Port Company Ltd. - India
- Meenaskhi Energy Private Limited - India
- Renaissance Capital - South Africa
- Sindya Power Generating Company Private Ltd
- IEA Clean Coal Centre - UK
- Petrochimia International Co. Ltd.- Taiwan
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- Sojitz Corporation - Japan
- Parry Sugars Refinery, India
- GMR Energy Limited - India
- Bukit Makmur.PT - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Semirara Mining and Power Corporation, Philippines
- Indika Energy - Indonesia
- Eastern Energy - Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Central Electricity Authority - India
- Goldman Sachs - Singapore
- Petron Corporation, Philippines
- ICICI Bank Limited - India
- Kapuas Tunggal Persada - Indonesia
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
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