We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 12 December 13
GREAT EXPECTATIONS SANCTIONED - EVA TZIMA
 News that sanctions on Iranian oil exports could be lifted sometime in the following months have shaken the markets recently. One of the world’s top oil suppliers historically and once OPEC’ s 2nd largest producer, Iran, has seen its exports squished since 2012, when both the U.S. and the European Union imposed additional sanctions against the country’s oil exports.
The sanctions that were imposed on the basis that Iran’s nuclear programme included enrichment of uranium, which if surpasses certain levels of purity can be used to develop nuclear weapons, affected extensively Iran’s economy. Following U.S.’s Comprehensive Iran Sanctions, Accountability, and Divestment Act (CIS ADA), a law passed in the summer of 2010 by the Congress, the E.U. also placed significant restrictions on foreign trade, financial services, energy sectors and technologies related to Iran. Additionally, the provision of insurance by firms incorporated in any E.U. member country, to Iranian-owned companies, was banned. With oil and gas production accounting for almost half of the local government’s income, the country’s current account surplus for 2012 has dropped more than 50% compared to 2011, while at the same time Iranian assets and funds were blocked due to the international sanctions.
With over 5% of the global sea borne exports coming from Iran up until 2012 and with domestic reserves placing the country at number four on the world’s largest oil reserves list, the knee jerk reaction was that lifting of these sanctions was great news for the tanker sector. Right when freight rates for the crude oil carriers have started catching a significant break, such development would come as the cherry on the top of a strengthening market and a possible recovery within 2014. As the noise has started to settle down though, it has become more evident that the outcome of all this is still very uncertain both for the timeframe during which sanctions will be lifted, as well as for the sort and scale of impact this could have on the fate of crude carriers.
The effects of Iran becoming a no-trade zone have been in tensely felt in the shipping industry, as the total restrictions for oil and gas exports have hurt seaborne trade in the region and elsewhere. On the one hand, European Union member states accounted for around 20% of Iran’s oil exports prior to the 2012 sanctions, while at the same time indirect restrictions were placed even for big importing countries of Iranian oil who didn’t impose sanctions themselves. In fact, as the U.S. targeted the country’s revenue from oil exports, it committed to cut off from the U.S. banking system any international financial institution that engaged into oil related transactions with Iran’ s central bank. That led the top importers of Iranian oil, like China, India, Japan and S. Korea, to reduce the number of Iranian crude in to their countries. This weighed further down on seaborne traded volumes and on top of that, any ship insurance cover from the sanction imposing countries was also rendered impossible; So, remove the sanctions and you get a healthier market back. Financial institutions are allowed to back up Iran related transactions, P&I clubs will start insuring cargoes and ships involved in the trade, Iranian funds t hat have been frozen all these years will be unblocked permitting for a significant liquidity boost in the oil market and crude exports both in the Med and Asia region will reach pre-2012 volumes again or even surpass them especially since Far East appetite for oil has been firing up again recently; Picture perfect for sure but don’t pop up the champagne just yet…
The reality is that the recent deal reached in Geneva will for now only allow “limited, targeted and reversible relief” from the existing sanctions. From Iran’s side, one of the main commitments involves halting enrichment of uranium over 5%. In return, world powers will put an end to specific sanctions involving the trade of petrochemicals, gold and the automotive sector, while they will also allow for $4.2bn of oil related funds to be transferred back to the country. This means that there is currently no commitment for oil related sanctions to be lifted in the near future and this is certainly a massive political hot potato for any world leader who decides to touch it, and one that cannot be easily reversed if a no sanctions path is carved. Businesses involved in sectors previously or currently affected by the sanctions will not jump to do business with Iran either. I would think that they will choose to wait for now and get involved only after a long period of time ha s passed, avoiding any back and forth on the sanction policy, as they wouldn’t want to risk seeing themselves or their funds being tainted in the process.
But irrespective of the developments surrounding the sanctions, as far as the trade of oil is concerned, the fact is that it has been the demand side of the trade driving the volumes rather than the supply. While the supply of crude coming from Iran has hit employment of tankers, in reality, the sector hasn’t suffered that long due to scarcity of cargoes but rather because of continuous subdued demand for the commodity, on the back of slowing down economies and increase in the price of oil itself. Nonetheless, the most worrying aspect in my opinion is the great expectations removal of sanctions can create in the market. The false sense of a possible demand spike that might o r might not happen, can lead to over optimistic expectations by owners and boost ordering in segments like that of VLs, the order book of which has been relatively healthy up until recently, leading to another vicious cycle of tonnage oversupply. Hopefully not.
Compiled by:
Intermodal Research & Valuations | research@intermodal.gr
Analysts:
Mr. George Lazaridis | g.lazaridis@intermodal.gr
Ms. Eva Tzima | e.tzima@intermodal.gr
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no re-producing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
Information contained within the website of COALspot.com is intended for informational purposes only and is not intended as professional counsel and should not be used as such.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 08 January 14
SHIPPING: THE ABSOLUTE BOTTOM OF THE CYCLE WAS REACHED AND PASSED - GEORGE LAZARIDIS
COALspot.com: To many in the industry 2013 has been the turning point in the market where the absolute bottom of the cycle was reached and passed.
...
Tuesday, 07 January 14
INDONESIA RAISES COAL PRICE THIS MONTH
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia has increased government declared coal bench mark price by US$ 1.59 / MT ...
Tuesday, 07 January 14
NEWCASTLE COAL TERMINAL'S COAL EXPORTS SLIDE TO 3.54 MMT W/E 30 DECEMBER 13
COALspot.com: In the week ended December 30, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, totalled 3.54 ...
Tuesday, 07 January 14
US COAL OUTPUT SLIDES 9 PCT WEEK ON WEEK, EIA SAYS
COALspot.com – United States the world’s second largest coal producer, produced approximately 17.8 million short tons (mmst) of coal in ...
Monday, 06 January 14
ARGUS LAUNCHES SPOT CFR EAST COAST INDIA COAL ASSESSMENTS
COALspot.com: Global energy and commodity news and price reporting agency Argus has announced today that, the company has launched CFR coal assessme ...
|
|
|
Showing 3921 to 3925 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Formosa Plastics Group - Taiwan
- Meralco Power Generation, Philippines
- Karaikal Port Pvt Ltd - India
- Attock Cement Pakistan Limited
- Renaissance Capital - South Africa
- Ministry of Finance - Indonesia
- Tata Chemicals Ltd - India
- Samtan Co., Ltd - South Korea
- Larsen & Toubro Limited - India
- Mercator Lines Limited - India
- Mercuria Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Coal and Oil Company - UAE
- SN Aboitiz Power Inc, Philippines
- Goldman Sachs - Singapore
- Sakthi Sugars Limited - India
- Grasim Industreis Ltd - India
- VISA Power Limited - India
- PTC India Limited - India
- The University of Queensland
- Wood Mackenzie - Singapore
- Georgia Ports Authority, United States
- South Luzon Thermal Energy Corporation
- Toyota Tsusho Corporation, Japan
- Bukit Makmur.PT - Indonesia
- Latin American Coal - Colombia
- Lanco Infratech Ltd - India
- Merrill Lynch Commodities Europe
- Parliament of New Zealand
- Jorong Barutama Greston.PT - Indonesia
- Chamber of Mines of South Africa
- Uttam Galva Steels Limited - India
- Altura Mining Limited, Indonesia
- Iligan Light & Power Inc, Philippines
- Economic Council, Georgia
- Pendopo Energi Batubara - Indonesia
- Bukit Baiduri Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Kohat Cement Company Ltd. - Pakistan
- Manunggal Multi Energi - Indonesia
- Metalloyd Limited - United Kingdom
- Romanian Commodities Exchange
- Ministry of Transport, Egypt
- Indika Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- MS Steel International - UAE
- Australian Commodity Traders Exchange
- CIMB Investment Bank - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- Trasteel International SA, Italy
- Australian Coal Association
- Kartika Selabumi Mining - Indonesia
- Tamil Nadu electricity Board
- Energy Link Ltd, New Zealand
- Anglo American - United Kingdom
- PetroVietnam Power Coal Import and Supply Company
- Makarim & Taira - Indonesia
- The State Trading Corporation of India Ltd
- Thiess Contractors Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Eastern Energy - Thailand
- Bhushan Steel Limited - India
- Videocon Industries ltd - India
- Ministry of Mines - Canada
- Leighton Contractors Pty Ltd - Australia
- Bharathi Cement Corporation - India
- SMC Global Power, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- New Zealand Coal & Carbon
- Ind-Barath Power Infra Limited - India
- Banpu Public Company Limited - Thailand
- Ambuja Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Asmin Koalindo Tuhup - Indonesia
- Agrawal Coal Company - India
- Thai Mozambique Logistica
- GVK Power & Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Minerals Council of Australia
- Essar Steel Hazira Ltd - India
- Directorate Of Revenue Intelligence - India
- Kobexindo Tractors - Indoneisa
- Edison Trading Spa - Italy
- Global Green Power PLC Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- San Jose City I Power Corp, Philippines
- Star Paper Mills Limited - India
- The Treasury - Australian Government
- India Bulls Power Limited - India
- Power Finance Corporation Ltd., India
- Indian Oil Corporation Limited
- Singapore Mercantile Exchange
- CNBM International Corporation - China
- Mintek Dendrill Indonesia
- Global Business Power Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Africa Commodities Group - South Africa
- PNOC Exploration Corporation - Philippines
- Petron Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Posco Energy - South Korea
- European Bulk Services B.V. - Netherlands
- Bhatia International Limited - India
- Orica Mining Services - Indonesia
- Heidelberg Cement - Germany
- Price Waterhouse Coopers - Russia
- Bulk Trading Sa - Switzerland
- Barasentosa Lestari - Indonesia
- IEA Clean Coal Centre - UK
- Standard Chartered Bank - UAE
- Timah Investasi Mineral - Indoneisa
- Xindia Steels Limited - India
- ASAPP Information Group - India
- Parry Sugars Refinery, India
- Miang Besar Coal Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Gujarat Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- Coalindo Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Kalimantan Lumbung Energi - Indonesia
- Madhucon Powers Ltd - India
- Mjunction Services Limited - India
- Kapuas Tunggal Persada - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Bayan Resources Tbk. - Indonesia
- Eastern Coal Council - USA
- Central Electricity Authority - India
- Orica Australia Pty. Ltd.
- Maharashtra Electricity Regulatory Commission - India
- TeaM Sual Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- London Commodity Brokers - England
- SMG Consultants - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Vizag Seaport Private Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sojitz Corporation - Japan
- GMR Energy Limited - India
- Electricity Authority, New Zealand
- Cement Manufacturers Association - India
- Commonwealth Bank - Australia
- Independent Power Producers Association of India
- Borneo Indobara - Indonesia
- Vedanta Resources Plc - India
- Chettinad Cement Corporation Ltd - India
- Antam Resourcindo - Indonesia
- White Energy Company Limited
- Intertek Mineral Services - Indonesia
- Bangladesh Power Developement Board
- Jindal Steel & Power Ltd - India
- Medco Energi Mining Internasional
- GN Power Mariveles Coal Plant, Philippines
- Port Waratah Coal Services - Australia
- Oldendorff Carriers - Singapore
- Maheswari Brothers Coal Limited - India
- Sinarmas Energy and Mining - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Sidhee Cement - India
- ICICI Bank Limited - India
- Indonesian Coal Mining Association
- McConnell Dowell - Australia
- Rashtriya Ispat Nigam Limited - India
- PowerSource Philippines DevCo
- TNB Fuel Sdn Bhd - Malaysia
- Marubeni Corporation - India
- Indo Tambangraya Megah - Indonesia
- Rio Tinto Coal - Australia
- International Coal Ventures Pvt Ltd - India
- Dalmia Cement Bharat India
- Semirara Mining and Power Corporation, Philippines
- Malabar Cements Ltd - India
- Siam City Cement PLC, Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Krishnapatnam Port Company Ltd. - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate General of MIneral and Coal - Indonesia
- Electricity Generating Authority of Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Simpson Spence & Young - Indonesia
- Carbofer General Trading SA - India
- Planning Commission, India
- Kideco Jaya Agung - Indonesia
- Sarangani Energy Corporation, Philippines
- Wilmar Investment Holdings
- Baramulti Group, Indonesia
- Binh Thuan Hamico - Vietnam
- Siam City Cement - Thailand
- Energy Development Corp, Philippines
- Sical Logistics Limited - India
- Interocean Group of Companies - India
- Aboitiz Power Corporation - Philippines
- Semirara Mining Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Indogreen Group - Indonesia
- Aditya Birla Group - India
- Jaiprakash Power Ventures ltd
- Kepco SPC Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Riau Bara Harum - Indonesia
- Indian Energy Exchange, India
- Central Java Power - Indonesia
|
| |
| |
|
