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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, 27 December 10
RIO TINTO EYES AUSTRALIAN COAL MINER - RTE NEWS
Global resources giant Rio Tinto has made a $3.9 billion bid for Australian coal miner Riversdale.
RTE News reported that, Global resources giant ...
Sunday, 26 December 10
ANGLO SELLS AUSTRALIAN COAL ASSETS - BARCELONA NEWS
Barcelona News reported that, Anglo American has sold off undeveloped Australia coal assets for $577 million.
The global resources giant ha ...
Saturday, 25 December 10
FREIGHT MARKET - LOWEST FIXTURES REPORTED SINCE MID 2009 - CAPT. REDDY
COALspot.com - We wish you a Merry Christmas and a Happy New Year 2011.
The holiday season seems to have severely affected the fr ...
Friday, 24 December 10
CIL SHORTLISTS 21 FIRMS TO IMPORT 250 MT COAL - THE HINDU
The Hindu reported that, Coal India plans to import about 250 million tonnes (mt) over the next 10 years to meet the country's growing requirement. ...
Friday, 24 December 10
DRY BULK OWNERS COULD SOON RECONSIDER SCRAPPING OLDER VESSELS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
With the dry bulk market close to its lowest levels in months and indeed close to 2010 lows, ship owners could be heading towards scrapyards in a bi ...
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- Australian Coal Association
- The Treasury - Australian Government
- Miang Besar Coal Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- Chamber of Mines of South Africa
- Sindya Power Generating Company Private Ltd
- Bhatia International Limited - India
- Thiess Contractors Indonesia
- Port Waratah Coal Services - Australia
- Coalindo Energy - Indonesia
- Central Electricity Authority - India
- Merrill Lynch Commodities Europe
- Sarangani Energy Corporation, Philippines
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Africa Commodities Group - South Africa
- Mercator Lines Limited - India
- Samtan Co., Ltd - South Korea
- TeaM Sual Corporation - Philippines
- Medco Energi Mining Internasional
- Bulk Trading Sa - Switzerland
- Indonesian Coal Mining Association
- PowerSource Philippines DevCo
- Vizag Seaport Private Limited - India
- Ministry of Finance - Indonesia
- Antam Resourcindo - Indonesia
- Madhucon Powers Ltd - India
- Aditya Birla Group - India
- Mjunction Services Limited - India
- Timah Investasi Mineral - Indoneisa
- Baramulti Group, Indonesia
- South Luzon Thermal Energy Corporation
- Power Finance Corporation Ltd., India
- Latin American Coal - Colombia
- Electricity Generating Authority of Thailand
- Petron Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Goldman Sachs - Singapore
- Altura Mining Limited, Indonesia
- Minerals Council of Australia
- Vijayanagar Sugar Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Ambuja Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Ministry of Mines - Canada
- Manunggal Multi Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Georgia Ports Authority, United States
- Trasteel International SA, Italy
- Singapore Mercantile Exchange
- Simpson Spence & Young - Indonesia
- Bharathi Cement Corporation - India
- Attock Cement Pakistan Limited
- Lanco Infratech Ltd - India
- Wilmar Investment Holdings
- IHS Mccloskey Coal Group - USA
- Ceylon Electricity Board - Sri Lanka
- Barasentosa Lestari - Indonesia
- GVK Power & Infra Limited - India
- Central Java Power - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Indogreen Group - Indonesia
- Deloitte Consulting - India
- Siam City Cement PLC, Thailand
- Alfred C Toepfer International GmbH - Germany
- Intertek Mineral Services - Indonesia
- Orica Australia Pty. Ltd.
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Green Power PLC Corporation, Philippines
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- The University of Queensland
- Carbofer General Trading SA - India
- Tata Chemicals Ltd - India
- PTC India Limited - India
- Kumho Petrochemical, South Korea
- Indian Oil Corporation Limited
- San Jose City I Power Corp, Philippines
- GMR Energy Limited - India
- Planning Commission, India
- Kartika Selabumi Mining - Indonesia
- Bhoruka Overseas - Indonesia
- ASAPP Information Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Formosa Plastics Group - Taiwan
- Iligan Light & Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Edison Trading Spa - Italy
- Indian Energy Exchange, India
- Bukit Baiduri Energy - Indonesia
- Meralco Power Generation, Philippines
- Savvy Resources Ltd - HongKong
- Therma Luzon, Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- International Coal Ventures Pvt Ltd - India
- Vedanta Resources Plc - India
- Neyveli Lignite Corporation Ltd, - India
- Parry Sugars Refinery, India
- Petrochimia International Co. Ltd.- Taiwan
- IEA Clean Coal Centre - UK
- Posco Energy - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- Xindia Steels Limited - India
- Price Waterhouse Coopers - Russia
- Star Paper Mills Limited - India
- Larsen & Toubro Limited - India
- White Energy Company Limited
- Kepco SPC Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- OPG Power Generation Pvt Ltd - India
- Rio Tinto Coal - Australia
- CNBM International Corporation - China
- Electricity Authority, New Zealand
- Aboitiz Power Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Straits Asia Resources Limited - Singapore
- PNOC Exploration Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Commonwealth Bank - Australia
- Uttam Galva Steels Limited - India
- Essar Steel Hazira Ltd - India
- Pendopo Energi Batubara - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Cement Manufacturers Association - India
- European Bulk Services B.V. - Netherlands
- Krishnapatnam Port Company Ltd. - India
- Wood Mackenzie - Singapore
- Malabar Cements Ltd - India
- Makarim & Taira - Indonesia
- Global Business Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Standard Chartered Bank - UAE
- Ministry of Transport, Egypt
- Indika Energy - Indonesia
- Grasim Industreis Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- LBH Netherlands Bv - Netherlands
- McConnell Dowell - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Bangladesh Power Developement Board
- Videocon Industries ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karaikal Port Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Heidelberg Cement - Germany
- Interocean Group of Companies - India
- Banpu Public Company Limited - Thailand
- The State Trading Corporation of India Ltd
- Karbindo Abesyapradhi - Indoneisa
- London Commodity Brokers - England
- Bahari Cakrawala Sebuku - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Directorate Of Revenue Intelligence - India
- MS Steel International - UAE
- Marubeni Corporation - India
- Tamil Nadu electricity Board
- Bhushan Steel Limited - India
- Kideco Jaya Agung - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Metalloyd Limited - United Kingdom
- PetroVietnam Power Coal Import and Supply Company
- Bukit Makmur.PT - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Eastern Energy - Thailand
- Eastern Coal Council - USA
- Oldendorff Carriers - Singapore
- Globalindo Alam Lestari - Indonesia
- Kobexindo Tractors - Indoneisa
- SMC Global Power, Philippines
- Kaltim Prima Coal - Indonesia
- Sical Logistics Limited - India
- Economic Council, Georgia
- Independent Power Producers Association of India
- Sree Jayajothi Cements Limited - India
- Energy Development Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Parliament of New Zealand
- Gujarat Electricity Regulatory Commission - India
- CIMB Investment Bank - Malaysia
- Thai Mozambique Logistica
- VISA Power Limited - India
- Maheswari Brothers Coal Limited - India
- GAC Shipping (India) Pvt Ltd
- Binh Thuan Hamico - Vietnam
- Mintek Dendrill Indonesia
- Siam City Cement - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Agrawal Coal Company - India
- Sojitz Corporation - Japan
- Australian Commodity Traders Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- Borneo Indobara - Indonesia
- India Bulls Power Limited - India
- Orica Mining Services - Indonesia
- ICICI Bank Limited - India
- Renaissance Capital - South Africa
- SMG Consultants - Indonesia
- Anglo American - United Kingdom
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- New Zealand Coal & Carbon
- Global Coal Blending Company Limited - Australia
- Dalmia Cement Bharat India
- Sakthi Sugars Limited - India
- Meenaskhi Energy Private Limited - India
- Romanian Commodities Exchange
- Toyota Tsusho Corporation, Japan
- Coal and Oil Company - UAE
- Gujarat Sidhee Cement - India
- Jorong Barutama Greston.PT - Indonesia
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