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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 $400/ldt for wet cargo” concluded Golden Destiny.
Source: Nikos Roussanoglou, Hellenic Shipping
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Thursday, 14 July 11
INDO GOVT. SETS JULY COAL REFERENCE PRICE AT US$ 118.24 PER TON
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia sets coal spot price benchmark for July 2011 at US$ 118.24 per ton, US$ 0 ...
Thursday, 14 July 11
DRY BULK MARKET KEEPS FALLING ON WEAK CAPESIZE SENTIMENT - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market kept on retreating on Wednesday, with the Baltic Dry Index (BDI) falling to 1,383 points, from 1,411 of the previous day. Capesi ...
Thursday, 14 July 11
UNITED TRACTORS BUYS DUTA SEJAHTERA - INSIDER STORIES
Insider Stories reported that, PT United Tractors Tbk (UNTR), via a wholly-owned subsidiary PT Tuah Turangga Agung, will acquire PT Duta Sejahtera a ...
Wednesday, 13 July 11
ANOTHER FIRMER WEEK FOR THE CAPES - BRS
Barry Rogliano Salles reported that, there were mixed results for the dry bulk market this week: the Capesize and Panamax markets performed well gai ...
Tuesday, 12 July 11
INDONESIAN MINERS PLAN $70M INVESTMENT TO UPGRADE QUALITY OF COAL - THE JAKARTA GLOBE
One of the leading english language news paper in indonesia, the Jakarta globe reported that, as the government implements a ban on the export of po ...
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- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Rio Tinto Coal - Australia
- India Bulls Power Limited - India
- Bharathi Cement Corporation - India
- Gujarat Mineral Development Corp Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Madhucon Powers Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Global Coal Blending Company Limited - Australia
- Anglo American - United Kingdom
- Indika Energy - Indonesia
- Bhatia International Limited - India
- Sojitz Corporation - Japan
- McConnell Dowell - Australia
- Kideco Jaya Agung - Indonesia
- Global Green Power PLC Corporation, Philippines
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- PowerSource Philippines DevCo
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Medco Energi Mining Internasional
- Aditya Birla Group - India
- Coal and Oil Company - UAE
- Oldendorff Carriers - Singapore
- Edison Trading Spa - Italy
- Therma Luzon, Inc, Philippines
- Planning Commission, India
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Kartika Selabumi Mining - Indonesia
- Lanco Infratech Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Indogreen Group - Indonesia
- Bangladesh Power Developement Board
- TNB Fuel Sdn Bhd - Malaysia
- Central Java Power - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Mercator Lines Limited - India
- Global Business Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Sinarmas Energy and Mining - Indonesia
- Kaltim Prima Coal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Bhoruka Overseas - Indonesia
- Energy Development Corp, Philippines
- Chamber of Mines of South Africa
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- Makarim & Taira - Indonesia
- Borneo Indobara - Indonesia
- International Coal Ventures Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Australian Commodity Traders Exchange
- Minerals Council of Australia
- Posco Energy - South Korea
- Thai Mozambique Logistica
- Offshore Bulk Terminal Pte Ltd, Singapore
- Riau Bara Harum - Indonesia
- GVK Power & Infra Limited - India
- Heidelberg Cement - Germany
- IHS Mccloskey Coal Group - USA
- Barasentosa Lestari - Indonesia
- Goldman Sachs - Singapore
- Metalloyd Limited - United Kingdom
- Directorate Of Revenue Intelligence - India
- Sical Logistics Limited - India
- Orica Australia Pty. Ltd.
- Essar Steel Hazira Ltd - India
- Mintek Dendrill Indonesia
- Meralco Power Generation, Philippines
- SMG Consultants - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- OPG Power Generation Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Cement Manufacturers Association - India
- PTC India Limited - India
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Asmin Koalindo Tuhup - Indonesia
- Standard Chartered Bank - UAE
- GMR Energy Limited - India
- Gujarat Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Parry Sugars Refinery, India
- Straits Asia Resources Limited - Singapore
- Banpu Public Company Limited - Thailand
- Singapore Mercantile Exchange
- Timah Investasi Mineral - Indoneisa
- Jindal Steel & Power Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Parliament of New Zealand
- Kapuas Tunggal Persada - Indonesia
- Sakthi Sugars Limited - India
- Sarangani Energy Corporation, Philippines
- Ministry of Mines - Canada
- Kobexindo Tractors - Indoneisa
- The University of Queensland
- AsiaOL BioFuels Corp., Philippines
- VISA Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coalindo Energy - Indonesia
- ICICI Bank Limited - India
- European Bulk Services B.V. - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Siam City Cement PLC, Thailand
- Karaikal Port Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Independent Power Producers Association of India
- Georgia Ports Authority, United States
- TeaM Sual Corporation - Philippines
- Samtan Co., Ltd - South Korea
- Mjunction Services Limited - India
- Ceylon Electricity Board - Sri Lanka
- Chettinad Cement Corporation Ltd - India
- Electricity Authority, New Zealand
- Kepco SPC Power Corporation, Philippines
- Trasteel International SA, Italy
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Commonwealth Bank - Australia
- Semirara Mining Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- New Zealand Coal & Carbon
- Aboitiz Power Corporation - Philippines
- Tamil Nadu electricity Board
- Rashtriya Ispat Nigam Limited - India
- PetroVietnam Power Coal Import and Supply Company
- GAC Shipping (India) Pvt Ltd
- Iligan Light & Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Agrawal Coal Company - India
- Attock Cement Pakistan Limited
- Mercuria Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Star Paper Mills Limited - India
- Pendopo Energi Batubara - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Manunggal Multi Energi - Indonesia
- Carbofer General Trading SA - India
- Ambuja Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Central Electricity Authority - India
- Indian Oil Corporation Limited
- Globalindo Alam Lestari - Indonesia
- Malabar Cements Ltd - India
- Dalmia Cement Bharat India
- Romanian Commodities Exchange
- Economic Council, Georgia
- Larsen & Toubro Limited - India
- Merrill Lynch Commodities Europe
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Directorate General of MIneral and Coal - Indonesia
- Price Waterhouse Coopers - Russia
- Eastern Energy - Thailand
- Kumho Petrochemical, South Korea
- Kohat Cement Company Ltd. - Pakistan
- Indian Energy Exchange, India
- Orica Mining Services - Indonesia
- Videocon Industries ltd - India
- Xindia Steels Limited - India
- Miang Besar Coal Terminal - Indonesia
- White Energy Company Limited
- Alfred C Toepfer International GmbH - Germany
- Maheswari Brothers Coal Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- Coastal Gujarat Power Limited - India
- Simpson Spence & Young - Indonesia
- MS Steel International - UAE
- Holcim Trading Pte Ltd - Singapore
- PNOC Exploration Corporation - Philippines
- Vedanta Resources Plc - India
- Indo Tambangraya Megah - Indonesia
- Australian Coal Association
- Port Waratah Coal Services - Australia
- Ministry of Transport, Egypt
- SMC Global Power, Philippines
- Deloitte Consulting - India
- San Jose City I Power Corp, Philippines
- Wood Mackenzie - Singapore
- Tata Chemicals Ltd - India
- Siam City Cement - Thailand
- Indonesian Coal Mining Association
- Billiton Holdings Pty Ltd - Australia
- London Commodity Brokers - England
- Sree Jayajothi Cements Limited - India
- Ministry of Finance - Indonesia
- The Treasury - Australian Government
- Kalimantan Lumbung Energi - Indonesia
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- Salva Resources Pvt Ltd - India
- Marubeni Corporation - India
- Vizag Seaport Private Limited - India
- Intertek Mineral Services - Indonesia
- Baramulti Group, Indonesia
- Formosa Plastics Group - Taiwan
- Thiess Contractors Indonesia
- Eastern Coal Council - USA
- Petrochimia International Co. Ltd.- Taiwan
- Energy Link Ltd, New Zealand
- Petron Corporation, Philippines
- CNBM International Corporation - China
- Ind-Barath Power Infra Limited - India
- Gujarat Sidhee Cement - India
- Bhushan Steel Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Power Finance Corporation Ltd., India
- ASAPP Information Group - India
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