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Friday, 15 July 11
DRY BULK MARKET SUFFERS NEW BLOW, RETREATS EVEN FURTHER - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 The dry bulk market fell even lower yesterday on the back of lower demand for larger vessels, like Capesizes and Panamaxes. The industry’s benchmark, the Baltic Dry Index (BDI) was down by 16 points to 1,367, with the Baltic Capesize Index (BCI) down even further to 1,943 points, while Panamaxes were also among the main “losers” with the Baltic Panamax Index (BPI) falling to 1,606 points as well. By contrast, the smaller vessel types were unchanged yesterday.
In light of this weak demand, it’s useful to take a look on the latest dry bulk demand estimated from BIMCO. According to the analysis, “the healthy demand picture of some 6% demand growth is what keeps the dry bulkers afloat. Despite the multiple disruptions that have already taken place, we see growing demand for almost all commodities. This has certainly prevented a meltdown of freight rates. Many people expected the current doldrums already last year, but extremely strong demand growth in 2010 postponed the hardship into 2011. While Capesize vessels are having the worst time of their lives, Supramaxes have kept up quite well recently – particularly in the Atlantic, where rates have moved more sideways than down. But the overall direction is in tune with all the other dry bulk vessel sizes – and that’s “southbound”. Even the smallest vessel type, Handysize, has not completely withstood the overall downward pressure, as rates in that segment are down 45% in May y-o-y. But if you look closer at 2011 alone, Handysize rates have been very stable in the USD 10,000-12,000 per day interval.
Like the tanker business has already done for some time now, the dry bulk business is settling in for an endurance race, as profitability hits new lows. Queensland, Australia, is getting closer to normal throughput following the severe flooding in January that hampered especially coal exports but also weakened the prospects of an otherwise strong high quality wheat harvest and subsequently strong export volumes. As Australian coking coal exports have been limited due to the extensive floods, the shortage has been spilling over into rising regional coal prices. That has benefitted the US, South African and Columbian exports, which in combination with falling freight costs, has made long distance coal transports competitive.
Extraordinary post-quake demand from Japan remains to be seen and the lack of dry bulk commodity demand from Japan is expected to stay around for another few months. As an exception the steel industry has managed to prevent a massive drop in output and thus also kept raw material imports steady. Official Japanese estimates point at a less than 3% drop in steel production in Q2 as compared to same period last year. Thus Japanese iron ore and coking coal demand have not been great movers in the market and are not really expected to become so throughout the remainder of 2011. What happens in the medium term depends largely on when rebuilding of the nation kicks off big time. Overall Japanese industrial production fell by 14.0% y-o-y in March, this is a significant drop bearing in mind that 1/3 of the month was normal.
Regardless of the slightly softer overall demand picture that is playing out when comparing it to the forecast at the start of the year, demand for most commodities is solid. Iron ore is set to be the best performer of the major bulk commodities at 1,040 million tons (+6% y-o-y) and amongst the minor bulks, cement stand out positively as it claws its way back from the 2009-abyss. The level is still some 15 million tons shy of the 2006-peak, but the cement trade is on course for 91 million tons, which will then be the highest demand on record when you exclude the extraordinary years 2005-2008” said BIMCO’s shipping analyst Peter Sand.
Another interesting insight can be given through the latest trends regarding demolition activity. According to the latest weekly report from Piraeus-based shipbroker, Golden Destiny, “in the demolition market, there has been a subdued sentiment with India offering weaker scrap rates and Bangladesh situation still being vague. Pakistan is trying to bid some tonnage, while China has stepped behind offering the lowest levels. In the bulk carrier segment, capesizes are still on the spotlight with about 47 units reported to have been sent to the scrap yards within the year.
There is a feeling that this trend will continue till the end of the year as capesize time charter equivalent earnings have not yet fully recovered, even though are floating above $10,000/day.
The recent softness in scrap prices has caused some worries about the trend in the coming weeks and some of the buyers and sellers wait and watch before committing to new deals. Rumors that the expected market closure in Bangladesh may not be forced on the beginning of July, leaves hopes for a future spike in rates. Bangladesh is now offering $495/ldt for dry/general cargo and $520/ldt for wet cargo, while in India scrap levels have fallen by $30-$40/ldt from May. It is worth mentioning the intensive scrapping trend in the reefer segment during the last month in the scrap yards of India.
The week ended at a slow pace of demolition activity but at higher levels from previous week with 11 vessels reported to have been headed to the scrap yards of total deadweight 850,332 tons. Bulk carriers have grasped the lion share, 55% of this week’s volume of business with 67% of the scrapping business being centred on large size units, capesizes and VLOC. In terms of the reported number of transactions, the demolition activity has been marked with a 22% week-on-week increase and in terms of the total deadweight sent for scrap there has been a 71% increase. In terms of scrap rates, the highest scrap rate has been achieved this week for M/V “Berge Pacific” 231,851dwt of 33,679 ldt at $505/ldt with buyers option India – Pakistan-Bangladeh. At similar week in 2010, demolition activity in terms of the reported number of transactions was down by 81% than the current levels, when 2 vessels had been reported for scrap of total deadweight 204 mil tons with India offering the highest levels $375/ldt for dry and $400/ldt for wet cargo” concluded Golden Destiny.
Source: Nikos Roussanoglou, Hellenic Shipping
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Saturday, 23 July 11
FAR EAST /SE ASIA ROUTE GAINED US$ 3000 HIGHER THAN LAST WEEK - VISTAAR
COALspot.com - The BDI further softened to by 2.22 pct and closed at 1323 points. The Cape and Panamax index also softened and closed at 1841 points ...
Saturday, 23 July 11
PANAMAX MARKET FACED A LIMITED ACTIVITY IN ALL BASINS
Handy
Atlantic softening across all segments with little fresh enquiry ex Bsea/Cont/USG and ECSA. Trips to Far east remain healthy. More cargoes ex ...
Friday, 22 July 11
MARUBENI ACQUIRING 42.86% SHARE OF YTL JAWA POWER HOLDINGS
COALspot.com - Japan’s Marubeni Corporation acquisition 42.86% stake in YTL Jawa Power Holdings BV, which owns a 35% equity interest in Indone ...
Thursday, 21 July 11
INDIA IMPORTS 36.033 MILLION TONS OF INDONESIAN COAL TILL JUNE
COALspot.com - Indonesia shipped 28.27 Million tons of coal in June 2011, a 2.3 percent lesser than May export of about 28.962 million tons, I ...
Thursday, 21 July 11
COAL PRICES ARE AT US$ 120 A TONNE
COALspot.com - Indonesian coal production in 2011 is expected to reach 360 million tons or 5.8 percent higher than government's forecasts. The incr ...
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- Aditya Birla Group - India
- Uttam Galva Steels Limited - India
- Indika Energy - Indonesia
- Tata Chemicals Ltd - India
- Australian Coal Association
- Bhatia International Limited - India
- Trasteel International SA, Italy
- Standard Chartered Bank - UAE
- Globalindo Alam Lestari - Indonesia
- European Bulk Services B.V. - Netherlands
- Sarangani Energy Corporation, Philippines
- Renaissance Capital - South Africa
- AsiaOL BioFuels Corp., Philippines
- Cigading International Bulk Terminal - Indonesia
- Indian Oil Corporation Limited
- Interocean Group of Companies - India
- Siam City Cement PLC, Thailand
- Latin American Coal - Colombia
- Altura Mining Limited, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Deloitte Consulting - India
- Indo Tambangraya Megah - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Makmur.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- SN Aboitiz Power Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Chamber of Mines of South Africa
- White Energy Company Limited
- Kideco Jaya Agung - Indonesia
- Meralco Power Generation, Philippines
- Electricity Authority, New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Aboitiz Power Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Ind-Barath Power Infra Limited - India
- SMG Consultants - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Cement Manufacturers Association - India
- Maharashtra Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Tamil Nadu electricity Board
- Semirara Mining Corp, Philippines
- Ministry of Finance - Indonesia
- Salva Resources Pvt Ltd - India
- The Treasury - Australian Government
- Orica Australia Pty. Ltd.
- The State Trading Corporation of India Ltd
- Riau Bara Harum - Indonesia
- Thai Mozambique Logistica
- TeaM Sual Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- Ambuja Cements Ltd - India
- Carbofer General Trading SA - India
- Iligan Light & Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Larsen & Toubro Limited - India
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- Orica Mining Services - Indonesia
- CIMB Investment Bank - Malaysia
- McConnell Dowell - Australia
- Bharathi Cement Corporation - India
- Savvy Resources Ltd - HongKong
- New Zealand Coal & Carbon
- Billiton Holdings Pty Ltd - Australia
- SMC Global Power, Philippines
- Antam Resourcindo - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asmin Koalindo Tuhup - Indonesia
- Singapore Mercantile Exchange
- Kepco SPC Power Corporation, Philippines
- Eastern Coal Council - USA
- Manunggal Multi Energi - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Bhoruka Overseas - Indonesia
- Independent Power Producers Association of India
- Vizag Seaport Private Limited - India
- Rashtriya Ispat Nigam Limited - India
- Petron Corporation, Philippines
- Planning Commission, India
- Bulk Trading Sa - Switzerland
- The University of Queensland
- Neyveli Lignite Corporation Ltd, - India
- Leighton Contractors Pty Ltd - Australia
- Posco Energy - South Korea
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Thiess Contractors Indonesia
- VISA Power Limited - India
- Formosa Plastics Group - Taiwan
- Coastal Gujarat Power Limited - India
- Africa Commodities Group - South Africa
- IEA Clean Coal Centre - UK
- Coal and Oil Company - UAE
- Malabar Cements Ltd - India
- Power Finance Corporation Ltd., India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- LBH Netherlands Bv - Netherlands
- Gujarat Sidhee Cement - India
- Oldendorff Carriers - Singapore
- Georgia Ports Authority, United States
- Madhucon Powers Ltd - India
- Mercuria Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Australian Commodity Traders Exchange
- Kartika Selabumi Mining - Indonesia
- Indian Energy Exchange, India
- PNOC Exploration Corporation - Philippines
- Bhushan Steel Limited - India
- Baramulti Group, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Attock Cement Pakistan Limited
- Mintek Dendrill Indonesia
- Borneo Indobara - Indonesia
- Ministry of Mines - Canada
- London Commodity Brokers - England
- PetroVietnam Power Coal Import and Supply Company
- Central Java Power - Indonesia
- Sojitz Corporation - Japan
- GN Power Mariveles Coal Plant, Philippines
- Dalmia Cement Bharat India
- Eastern Energy - Thailand
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- Economic Council, Georgia
- Petrochimia International Co. Ltd.- Taiwan
- Maheswari Brothers Coal Limited - India
- Romanian Commodities Exchange
- Medco Energi Mining Internasional
- Vijayanagar Sugar Pvt Ltd - India
- Parliament of New Zealand
- Kapuas Tunggal Persada - Indonesia
- MS Steel International - UAE
- Global Green Power PLC Corporation, Philippines
- Star Paper Mills Limited - India
- Makarim & Taira - Indonesia
- Indogreen Group - Indonesia
- Barasentosa Lestari - Indonesia
- Heidelberg Cement - Germany
- Xindia Steels Limited - India
- Anglo American - United Kingdom
- Jindal Steel & Power Ltd - India
- Samtan Co., Ltd - South Korea
- Sakthi Sugars Limited - India
- Bayan Resources Tbk. - Indonesia
- Merrill Lynch Commodities Europe
- Port Waratah Coal Services - Australia
- PowerSource Philippines DevCo
- Directorate Of Revenue Intelligence - India
- Jorong Barutama Greston.PT - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Karaikal Port Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Global Business Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Edison Trading Spa - Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- South Luzon Thermal Energy Corporation
- Ministry of Transport, Egypt
- Bangladesh Power Developement Board
- Electricity Generating Authority of Thailand
- Sindya Power Generating Company Private Ltd
- Central Electricity Authority - India
- Grasim Industreis Ltd - India
- San Jose City I Power Corp, Philippines
- GVK Power & Infra Limited - India
- Sical Logistics Limited - India
- Bukit Baiduri Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Krishnapatnam Port Company Ltd. - India
- Wood Mackenzie - Singapore
- Mercator Lines Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Bahari Cakrawala Sebuku - Indonesia
- Vedanta Resources Plc - India
- Sree Jayajothi Cements Limited - India
- Semirara Mining and Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- Agrawal Coal Company - India
- ICICI Bank Limited - India
- GMR Energy Limited - India
- GAC Shipping (India) Pvt Ltd
- Binh Thuan Hamico - Vietnam
- OPG Power Generation Pvt Ltd - India
- Rio Tinto Coal - Australia
- ASAPP Information Group - India
- Wilmar Investment Holdings
- Mjunction Services Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Lanco Infratech Ltd - India
- Coalindo Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Jaiprakash Power Ventures ltd
- Marubeni Corporation - India
- Goldman Sachs - Singapore
- Energy Development Corp, Philippines
- Essar Steel Hazira Ltd - India
- Parry Sugars Refinery, India
- CNBM International Corporation - China
- Therma Luzon, Inc, Philippines
- Intertek Mineral Services - Indonesia
- Siam City Cement - Thailand
- Meenaskhi Energy Private Limited - India
- Indonesian Coal Mining Association
- Gujarat Electricity Regulatory Commission - India
- TNB Fuel Sdn Bhd - Malaysia
- Straits Asia Resources Limited - Singapore
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