We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 01 October 13
DRY BULK MARKET POISED FOR RETREAT ON CHINA HOLIDAY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The start of a national weeklong in China as of Tuesday is expected to put a lid in the latest rally of the dry bulk freight market, as has always been the case in similar occasions. This trend has already been obvious, by tracking the latest couple of sessions of the industry's benchmark, the Baltic Dry Index. The BDI was down 43 points yesterday, to end at 2,003 points, still more than double than the level of this past summer. The Capesize market witnessed the widest losses, which again was to be expected, given that most of the Capesize business is coming out of China. The BCI (Baltic Capesize Index) was down by 114 points to 3,853. Marginal losses were again obvious in the Panamax market, while smaller ship classes fared better, with Supramaxes rising by 10 points and Handysizes by three points to 1,079 and 597 respectively.
Capt. Jitesh Jaipuriyar, Chief Operating officer with Emerald Maritime, Dubai, offered Hellenic Shipping News Worldwide (www.hellenicshippingnews.com) an insight, regarding this latest rally of the dry bulk market, which has been fuelled by factors both "upstream" and "downstream". In the upstream factors, Capt. Jaipuriyar, noted that "miners are not able to sell at higher costs as there are few “takers”. India and China, as one of the most prospective import economies, are unable to support high raw material prices due to currency devaluation and slow growth combined. However, a miner may not be able to feed supply at the same cost for long as it threatens the very survival. Thus, the importer is forced to pay for high raw material prices which eventually is directly correlated to BDI upswing and supports the rally", he stated.
Regarding downstream factors, Capt. said that "in the current scenario, any increase in prices of raw materials, shall force miners to pass on the rises to the end users, in order to maintain profit margins, especially if this trend continues for an extended period. For shipping to recover, then this period has to be extended. Does it mean that it would bring “Inflationary pressure” in emerging economies? Not necessary. This is because when pressure builds up on downstream, other “balancing factors” shall come into play" he says.
According to Capt. Jaipuriyar, at this stage "the following question arises, if the high raw materials cost shall be able to create a “derived demand” or not. What we see as of now may not be real derived demand but more of a “Pseudo Demand”. Pseudo demand emerges from the constraint of choices a company has when having contracted out spot rates. This will show increased demand through paying more for shipping of the materials. However, the fact remains that companies have to commit to long term contracts (LTCs) and soaring period rates would not allow them to contract ships at lesser Time-Charter equivalents. But LTCs can play ‘Wait and watch’ game. This again contributes to pool of “pseudo demand” to be capitalized later and would support the rally", he says.
BULLWHIP EFFECT & “DECOUPLING”
"Last month, A Capesize stem from Australia to China, cost USD 14 per MT whereas same when slit in two panamaxes, costs only USD 13 per MT. This is against the economy of scale. So, how does it happen? When the demand goes up, a producer goes for bigger volumes and Capes rate go high. Due to limited Capes, the demand for smaller sizes down the chain increases which in effect creates a ‘Bullwhip effect’ to drive the demand for ships and rallies BDI overall.
So, at some point of time, the economic principles “decouple” with existing demand and supply scenario and lead to speculations. This in turn brings in volatility in the market. But the end demand drives it in sustainable way in spite of creation of multiple peaks and troughs on the way.
ROAD AHEAD
There have been many attempts to forecast BDIs in past and will continued to be explored. However, interestingly, it appears that the accuracy of forecasts lies not in “correlation” but possible “negative correlations”. It is for the fact that a positive correlation is not mere a result of one factor but a combination of many. Under such circumstances, it may not be possible to substantiate a proper or perfect “weightage” to one factor or another. But, past shows that gold, CRB (Commodity research bureau index) and crude prices often indicate how the negative correlation is building up and may help forecast BDI for short runs, possibly.
Overall, market remains upbeat for positive growth as stockpiles of grains and coal and other major commodities remain high to be shipped across the geographies", he concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 02 October 13
HOW LONG WILL THIS LATEST CAPESIZE RALLY LAST? - TASOS PAPADOPOULOS
By Tasos Papadopoulos, SnP Broker, Intermodal
The surge in iron ore trade has translated into a massive boost in daily earnings for capes; with t ...
Monday, 30 September 13
NEWCASTLE'S COAL EXPORT VOLUME CONTINUES TO SLIP
COALspot.com: Power plant and semi-soft coking coal shipments from Australia's Newcastle port fell 8.38 per cent week on week to 2.67 million mt fo ...
Monday, 30 September 13
PANAMAX CHARTER RATES TOUCHING US$ 18K FOR A TRIP TO NOPAC - CAPT. REDDY
COALspot.com : The freight market continued to remain firm, BDI and the Panamax index up week ended 27 September 2013.
The cape index was fell to ...
Sunday, 29 September 13
API 8 CFR SOUTH CHINA COAL Q3 2014 DELIVERY SWAP GAINED $1.19 M-O-M
COALspot.com : SGX has launched API 8 CFR South China Coal Swap on 29 April 2013 and SGX replaced the previous swap.
API 8 CFR South China Coal s ...
Sunday, 29 September 13
SUB-BIT INDONESIA COAL SWAP FELL ON MONTH AND WEEK
COALspot.com – Sub-Bit Indonesia coal swap (FOB ) for average Q4 2013 delivery fell 3.93 percept month on month on Friday 27 September 2 ...
|
|
|
Showing 4091 to 4095 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Tata Chemicals Ltd - India
- Sakthi Sugars Limited - India
- Singapore Mercantile Exchange
- Gujarat Sidhee Cement - India
- Electricity Authority, New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Agrawal Coal Company - India
- GVK Power & Infra Limited - India
- Grasim Industreis Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Bhushan Steel Limited - India
- Uttam Galva Steels Limited - India
- Jindal Steel & Power Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- London Commodity Brokers - England
- Semirara Mining Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Thai Mozambique Logistica
- Holcim Trading Pte Ltd - Singapore
- Barasentosa Lestari - Indonesia
- Baramulti Group, Indonesia
- Ministry of Mines - Canada
- Essar Steel Hazira Ltd - India
- Directorate Of Revenue Intelligence - India
- Sree Jayajothi Cements Limited - India
- Wood Mackenzie - Singapore
- Mercator Lines Limited - India
- Indian Energy Exchange, India
- European Bulk Services B.V. - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Riau Bara Harum - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Asmin Koalindo Tuhup - Indonesia
- Bulk Trading Sa - Switzerland
- Marubeni Corporation - India
- Bangladesh Power Developement Board
- SMG Consultants - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Vizag Seaport Private Limited - India
- Straits Asia Resources Limited - Singapore
- Mercuria Energy - Indonesia
- Mintek Dendrill Indonesia
- Antam Resourcindo - Indonesia
- Tamil Nadu electricity Board
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Bukit Makmur.PT - Indonesia
- Malabar Cements Ltd - India
- Kobexindo Tractors - Indoneisa
- Global Coal Blending Company Limited - Australia
- Chettinad Cement Corporation Ltd - India
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- Therma Luzon, Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Heidelberg Cement - Germany
- San Jose City I Power Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Alfred C Toepfer International GmbH - Germany
- Samtan Co., Ltd - South Korea
- Attock Cement Pakistan Limited
- Port Waratah Coal Services - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indo Tambangraya Megah - Indonesia
- Global Green Power PLC Corporation, Philippines
- Formosa Plastics Group - Taiwan
- White Energy Company Limited
- Ambuja Cements Ltd - India
- Goldman Sachs - Singapore
- Central Java Power - Indonesia
- Energy Link Ltd, New Zealand
- Vedanta Resources Plc - India
- Bhatia International Limited - India
- Makarim & Taira - Indonesia
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Interocean Group of Companies - India
- Leighton Contractors Pty Ltd - Australia
- Indogreen Group - Indonesia
- IHS Mccloskey Coal Group - USA
- Rio Tinto Coal - Australia
- Kalimantan Lumbung Energi - Indonesia
- Posco Energy - South Korea
- Pendopo Energi Batubara - Indonesia
- Intertek Mineral Services - Indonesia
- Borneo Indobara - Indonesia
- Anglo American - United Kingdom
- Globalindo Alam Lestari - Indonesia
- Coalindo Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Renaissance Capital - South Africa
- Ministry of Transport, Egypt
- Bukit Baiduri Energy - Indonesia
- GMR Energy Limited - India
- Cement Manufacturers Association - India
- Independent Power Producers Association of India
- Jorong Barutama Greston.PT - Indonesia
- Indika Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- International Coal Ventures Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Medco Energi Mining Internasional
- Bank of Tokyo Mitsubishi UFJ Ltd
- South Luzon Thermal Energy Corporation
- India Bulls Power Limited - India
- Dalmia Cement Bharat India
- Siam City Cement PLC, Thailand
- Sinarmas Energy and Mining - Indonesia
- Commonwealth Bank - Australia
- Minerals Council of Australia
- Eastern Energy - Thailand
- Billiton Holdings Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- Binh Thuan Hamico - Vietnam
- Carbofer General Trading SA - India
- Edison Trading Spa - Italy
- SMC Global Power, Philippines
- Electricity Generating Authority of Thailand
- Price Waterhouse Coopers - Russia
- TeaM Sual Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- MS Steel International - UAE
- Energy Development Corp, Philippines
- Maheswari Brothers Coal Limited - India
- Australian Coal Association
- Africa Commodities Group - South Africa
- Trasteel International SA, Italy
- Kumho Petrochemical, South Korea
- Banpu Public Company Limited - Thailand
- CIMB Investment Bank - Malaysia
- Indonesian Coal Mining Association
- GAC Shipping (India) Pvt Ltd
- Larsen & Toubro Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Romanian Commodities Exchange
- Salva Resources Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- McConnell Dowell - Australia
- Toyota Tsusho Corporation, Japan
- LBH Netherlands Bv - Netherlands
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Economic Council, Georgia
- PTC India Limited - India
- Sojitz Corporation - Japan
- Latin American Coal - Colombia
- Mjunction Services Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Madhucon Powers Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Chamber of Mines of South Africa
- Ministry of Finance - Indonesia
- Deloitte Consulting - India
- ICICI Bank Limited - India
- Wilmar Investment Holdings
- VISA Power Limited - India
- Bharathi Cement Corporation - India
- Orica Mining Services - Indonesia
- Merrill Lynch Commodities Europe
- Manunggal Multi Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- Ind-Barath Power Infra Limited - India
- PNOC Exploration Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- ASAPP Information Group - India
- Georgia Ports Authority, United States
- Videocon Industries ltd - India
- The University of Queensland
- New Zealand Coal & Carbon
- Savvy Resources Ltd - HongKong
- IEA Clean Coal Centre - UK
- Standard Chartered Bank - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Aboitiz Power Corporation - Philippines
- Lanco Infratech Ltd - India
- Meenaskhi Energy Private Limited - India
- Parry Sugars Refinery, India
- Orica Australia Pty. Ltd.
- CNBM International Corporation - China
- Oldendorff Carriers - Singapore
- Sarangani Energy Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Bhoruka Overseas - Indonesia
- Siam City Cement - Thailand
- OPG Power Generation Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Sical Logistics Limited - India
- Gujarat Electricity Regulatory Commission - India
- Neyveli Lignite Corporation Ltd, - India
- Parliament of New Zealand
- Power Finance Corporation Ltd., India
- Planning Commission, India
- Kohat Cement Company Ltd. - Pakistan
- Petron Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Thiess Contractors Indonesia
- Altura Mining Limited, Indonesia
- Ceylon Electricity Board - Sri Lanka
- Star Paper Mills Limited - India
- Meralco Power Generation, Philippines
- PowerSource Philippines DevCo
- Coal and Oil Company - UAE
- Iligan Light & Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aditya Birla Group - India
- Xindia Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Indian Oil Corporation Limited
- Eastern Coal Council - USA
- Kideco Jaya Agung - Indonesia
|
| |
| |
|
