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Thursday, 13 January 11
DRY BULK RATES HIT NEW MULTI-MONTH LOWS ON AUSTRALIAS FLOODS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 Floods in Australia’s Queensland has seriously disrupted coal shipments and together with a flood of vessels has pushed freight rates for dry bulk carriers to new multi-month lows. As a result, the Baltic Dry Index fell further yesterday to just 1,453 points, losing 1.82% on the day, while the suffering Capesize segment retreated by a further 4.77%.
The BDI has now recorded 21 straight losing sessions, losing almost 34% of its value. According to calculations from John Cotzias, head of N.Cotzias Shipping Group, in 58 sessions spanning at just less of three months, there have been only 10 days, during which the index was positive.
“The Cape index is counting 12 falling days and has overall lost in this period close to 40% of its volume. BDI is currently below levels of 5 Feb 2009 when the index was rising” said Mr. Cotzias. The market hasn’t seen such low levels since November of 2002, except of course the October 2008 market crash.
In a separate analysis, BIMCO’s shipping analyst Peter Sand said that all in all – the worst flooding in Queensland for more than 50 years “is not only bad for Australia, it's also bad for shipping as volumes on coal and iron ore go down considerably - and more vessels are free on the market putting pressure on the spot market for vessels. Average Capesize time charter rate that has been falling since end of November is now down at USD 11,266 per day trading lower every day” said Sand. He went on to state that iron ore which is exported out of West Australia is not directly affected yet even though that area has received much rain also. Lower steel production and thus also lower seaborne volumes of the two key dry bulk commodities is set to impact the market negatively over the next months. Australia is the world's largest overall coal exporter ,No. 2 in thermal coal exports after Indonesia but second to none in coking coal exports. Australia is key global coking coal supplier accounting for 60% of global seaborne exports. Within thermal coal Australia accounts for 20%. Thermal coal is used for power generation and heating, while coking coal is used in the production steel. As we have already seen, coal customers will try to find other ways to satisfy their demand for thermal coal but the real trouble is coking coal - as it is very hard to get from elsewhere. Shortage of Australian coking coal means that the worlds steel producers, primarily located in Asia, can be forced to cut the production of steel and with it also the demand for iron ore. ”A slowdown in steel production and iron ore demand is toxic to dry bulk shipping in general and for the larger vessels, Capesize and Panamax in particular. The iron ore contract prices for Q1-2011 have already been set at 7% higher than the previous quarter - but spot iron ore prices can still fluctuate and will move south on lower demand. China imports 40-50% of its coking coal from Australia. Japan, the world’s largest coking coal importer is heavily impacted also. The flooding may see contract prices for coking coal hiking significantly due to spot prices going sharply up as a result of the tight market. A part of the mechanism behind the contract prices is the spot price development. This may result in coking coal prices moving from USD 225 per tonnes in Q1-2011 up to USD 270-300 per tonnes according to several commodity analysts.
When the mines call force majeure - the steel mills must go to the spot market for coking coal - at a much higher price than the contract price for this important steel production ingredient - if they can get it at all. Alternative sources of coking coal are the US and Canada but reports are that the tight market has impacted prices also there, leading to higher commodity prices. So if coking coal spot goes up on tight supply - iron ore spot price can go down as a consequence of lower demand. A price hike in coking coal will increase the
production cost for steel - in a market already running on low margins” said BIMCO’s analyst.
So where will it go from here? “It is a string of events that cause shipping demand out of Australia to go down. Moreover the market place is plentifully supplied with tonnage so the fact that some of the commodities will be supplied from sources further away will only have very limited impact on the market. The first quarter of 2011 - do not hold great prospects for the dry bulk market - mainly because the oversupply of vessels is getting too heavy even for the "normal" inefficiencies of the market to make impact on the freight rates. The Australian situation is set to affect the market for at least a of couple months - meaning that the situation outlined above will stay a drag on the overall market and freight rates for some time” concluded Sand.
Talking about the potential overcapacity, Cotzias said that there is a total of over 3,500 dry bulk carriers on order pending until 2014 of a total of 250 million tons dwt. “These orders are split chronologically as follows: 1,854 ships are due for 2011 making up a total of 128 mil dwt, 1,106 ships due in 2012 of 87 mil dwt and 360 ships of 30 mil dwt due for 2013-2014. In total there is a massive orderbook only on the Bulkers section and we should not understate the fact that 2011 faces us with more than 55% of the total orderbook and that we should also include in this 114 orders of 4mil dwt that are “carried forward” from 2010”.
Source: Nikos Roussanoglou, Hellenic Shipping
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Monday, 07 February 11
RICHARDS BAY COAL TERMINAL EXPORTS SURGE, BUOYED BY ECONOMIC DEVELOPMENT IN CHINA AND INDIA
COALspot.com - Richards Bay Coal Terminal (RBCT) announced today that 2010 exports have exceeded the last two years’ performance, said in a re ...
Monday, 07 February 11
RBCT SHIPPED 28.67 PERCENT LESS COAL IN JANUARY
COALspot.com - Richards Bay Coal Terminal (RBCT) is the single largest export coal terminal in the world, shipped 4,389,925 MT of coal in January 20 ...
Sunday, 06 February 11
THE PANAMAX & SUPRAMAX FUTURES FOR 2011-2013 WAS AT AROUND US$ 16,500 & US$ 15,000 PER DAY RESPECTIVELY
COALspot.com - With the Chinese new year holidays this week, the market has been fairly quite as expected.
The BDI saw a bigger drop compared to ...
Saturday, 05 February 11
INDONESIAN ENERGY MINISTER HAS SIGNED A DECREE FOR COAL TRANSPORTATION PERMITS ON FRIDAY
COALspot.com - Minister of Energy, Darwin Minister Saleh said, that, he had signed a decree for transportation and sale of coal, which was the ...
Saturday, 05 February 11
ANCHORAGE LOADING POINT MOVED TO MUARA JAWA
COALspot.com - The Ministry of Transportation Republic Indonesia has announced that, the loading point at Muara Berau, East kalimantan h ...
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- Antam Resourcindo - Indonesia
- Xindia Steels Limited - India
- Baramulti Group, Indonesia
- Rio Tinto Coal - Australia
- IEA Clean Coal Centre - UK
- Kobexindo Tractors - Indoneisa
- Attock Cement Pakistan Limited
- Electricity Generating Authority of Thailand
- The State Trading Corporation of India Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- San Jose City I Power Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Aditya Birla Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Makmur.PT - Indonesia
- ICICI Bank Limited - India
- Power Finance Corporation Ltd., India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Electricity Authority, New Zealand
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- Mercator Lines Limited - India
- Coalindo Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Mjunction Services Limited - India
- AsiaOL BioFuels Corp., Philippines
- Merrill Lynch Commodities Europe
- Barasentosa Lestari - Indonesia
- Lanco Infratech Ltd - India
- Sree Jayajothi Cements Limited - India
- Kepco SPC Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement PLC, Thailand
- Tata Chemicals Ltd - India
- Toyota Tsusho Corporation, Japan
- Kumho Petrochemical, South Korea
- Standard Chartered Bank - UAE
- CIMB Investment Bank - Malaysia
- Global Coal Blending Company Limited - Australia
- GVK Power & Infra Limited - India
- Sakthi Sugars Limited - India
- Directorate Of Revenue Intelligence - India
- Anglo American - United Kingdom
- OPG Power Generation Pvt Ltd - India
- Bhatia International Limited - India
- Tamil Nadu electricity Board
- SMC Global Power, Philippines
- Altura Mining Limited, Indonesia
- India Bulls Power Limited - India
- Savvy Resources Ltd - HongKong
- Ceylon Electricity Board - Sri Lanka
- Essar Steel Hazira Ltd - India
- Star Paper Mills Limited - India
- Semirara Mining Corp, Philippines
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Ministry of Transport, Egypt
- Alfred C Toepfer International GmbH - Germany
- McConnell Dowell - Australia
- Salva Resources Pvt Ltd - India
- Australian Coal Association
- Posco Energy - South Korea
- Bulk Trading Sa - Switzerland
- The Treasury - Australian Government
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- European Bulk Services B.V. - Netherlands
- Kideco Jaya Agung - Indonesia
- Parliament of New Zealand
- LBH Netherlands Bv - Netherlands
- South Luzon Thermal Energy Corporation
- Aboitiz Power Corporation - Philippines
- Minerals Council of Australia
- Kohat Cement Company Ltd. - Pakistan
- The University of Queensland
- Larsen & Toubro Limited - India
- Dalmia Cement Bharat India
- Goldman Sachs - Singapore
- Bukit Baiduri Energy - Indonesia
- Indonesian Coal Mining Association
- Intertek Mineral Services - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Global Green Power PLC Corporation, Philippines
- Planning Commission, India
- Gujarat Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Ministry of Finance - Indonesia
- Mintek Dendrill Indonesia
- Agrawal Coal Company - India
- Bangladesh Power Developement Board
- Timah Investasi Mineral - Indoneisa
- PTC India Limited - India
- Kapuas Tunggal Persada - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- SMG Consultants - Indonesia
- Carbofer General Trading SA - India
- Jindal Steel & Power Ltd - India
- Eastern Coal Council - USA
- Romanian Commodities Exchange
- Therma Luzon, Inc, Philippines
- Trasteel International SA, Italy
- IHS Mccloskey Coal Group - USA
- Singapore Mercantile Exchange
- Semirara Mining and Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Thiess Contractors Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- Cement Manufacturers Association - India
- Price Waterhouse Coopers - Russia
- Ind-Barath Power Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- Wilmar Investment Holdings
- Samtan Co., Ltd - South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Uttam Galva Steels Limited - India
- Medco Energi Mining Internasional
- Karaikal Port Pvt Ltd - India
- Central Electricity Authority - India
- Parry Sugars Refinery, India
- Directorate General of MIneral and Coal - Indonesia
- VISA Power Limited - India
- Wood Mackenzie - Singapore
- Billiton Holdings Pty Ltd - Australia
- Chettinad Cement Corporation Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Borneo Indobara - Indonesia
- Iligan Light & Power Inc, Philippines
- Riau Bara Harum - Indonesia
- MS Steel International - UAE
- PetroVietnam Power Coal Import and Supply Company
- Energy Development Corp, Philippines
- Global Business Power Corporation, Philippines
- ASAPP Information Group - India
- Holcim Trading Pte Ltd - Singapore
- Latin American Coal - Colombia
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Energy - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Interocean Group of Companies - India
- Formosa Plastics Group - Taiwan
- Vedanta Resources Plc - India
- Renaissance Capital - South Africa
- New Zealand Coal & Carbon
- Indo Tambangraya Megah - Indonesia
- International Coal Ventures Pvt Ltd - India
- Economic Council, Georgia
- PowerSource Philippines DevCo
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- Coal and Oil Company - UAE
- Thai Mozambique Logistica
- Africa Commodities Group - South Africa
- Sical Logistics Limited - India
- Vizag Seaport Private Limited - India
- Videocon Industries ltd - India
- London Commodity Brokers - England
- Gujarat Mineral Development Corp Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Pendopo Energi Batubara - Indonesia
- Gujarat Sidhee Cement - India
- Port Waratah Coal Services - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Bharathi Cement Corporation - India
- Central Java Power - Indonesia
- GAC Shipping (India) Pvt Ltd
- Maharashtra Electricity Regulatory Commission - India
- Manunggal Multi Energi - Indonesia
- Energy Link Ltd, New Zealand
- Siam City Cement - Thailand
- Madhucon Powers Ltd - India
- Straits Asia Resources Limited - Singapore
- Krishnapatnam Port Company Ltd. - India
- Coastal Gujarat Power Limited - India
- Sarangani Energy Corporation, Philippines
- Chamber of Mines of South Africa
- Independent Power Producers Association of India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Bayan Resources Tbk. - Indonesia
- Edison Trading Spa - Italy
- Indika Energy - Indonesia
- Georgia Ports Authority, United States
- Malabar Cements Ltd - India
- Orica Mining Services - Indonesia
- Petron Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Deloitte Consulting - India
- Bhushan Steel Limited - India
- TeaM Sual Corporation - Philippines
- Indian Energy Exchange, India
- Mercuria Energy - Indonesia
- GMR Energy Limited - India
- Sindya Power Generating Company Private Ltd
- Sojitz Corporation - Japan
- Kartika Selabumi Mining - Indonesia
- Australian Commodity Traders Exchange
- Meenaskhi Energy Private Limited - India
- Bhoruka Overseas - Indonesia
- Heidelberg Cement - Germany
- Metalloyd Limited - United Kingdom
- White Energy Company Limited
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
- Ambuja Cements Ltd - India
- Banpu Public Company Limited - Thailand
- Jaiprakash Power Ventures ltd
- Grasim Industreis Ltd - India
- Orica Australia Pty. Ltd.
- Indian Oil Corporation Limited
- Miang Besar Coal Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Commonwealth Bank - Australia
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