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Friday, 19 September 14
PRICES FOR DRY BULK CARRIERS HAVEN'T CORRECTED ENOUGH, DESPITE LOWER THAN EXPECTED FREIGHT RATES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 A lot has been said and written about the looming dry bulk market recovery over the past few months. However, even if this hasn’t been materialized, at least not yet, prices for dry bulk carriers haven’t abated that much. According to the latest report from shipbroker Intermodal this is due to a number of reasons, namely the overabundance of financing, given the rapid emergence of private equity funds, as well as the sellers’ expectations.
According to Intermodal’s weekly report, “cince the onslaught of 2013 the rising tide of asset prices had been primarily driven by the increasing freight market conditions and the improving sentiment as to the future prospects of the Dry Bulk markets. Having put behind them the “lean” years of 2011 and 2012, owners were starting to feel more confident about the conditions they would face moving forward. Many saw a more balanced market were the ore reasonable delivery schedule of newbuildings (compared to that of 2012) would be met with the equal demand growth that they had been accustomed to during the period post the 2008 crisis”.
Intermodal’s Research Analyst, Mr. George Lazaridis noted that, “this was a fairly reasonable assumption as there seemed to be nothing in sight that could stop the insatiable appetite from the developing economies for further growth and higher consumption of raw materials. This all proved the more reasonable when just at the start of the final quarter of 2013 a major rally in the freight markets started to take place, bringing earnings to levels that were long forgotten”.
Yet, as he noted “this rosy picture painted by many in their mind was already breaking at the seams. The freight market started to plummet back down to the levels seen in early 2013 and whispers started to emerge of an imminent slowdown in growth by the dry bulk’s major driving economy, namely China. Yet this did not seem to have the strong impact many would have anticipated in the secondhand market. Prices continued to climb at an extraordinary rate peaking late April early May, despite the fact that a promise of a strong spring market never materialized. Yet even after this, the correction was only marginal”.
So why is there still such optimism amongst buyers? and more specifically why still for the larger Capesize vessels? These are the questions posed rightfully so by the shipbroker’s analyst. According to Mr. Lazaridis, “many may be still convinced that appetite will still be there going forward for both iron ore and coal by the world’s second largest economy. In all truth there may well be a new stimulus plan just around the corner and things may well get back on track with regards to demand. But it seems there is a more indirect cause at play here.
While the continual increase in asset prices may be seen as a reflection of a more bullish approach by investors, it seems to be more the excess of financing and the high price ideas held by the few available sellers in the market. With regards to the former, one must not forget that finance was not easily available during 2011-2012, especially for secondhand purchases and as a consequence the large influx of cash has made most buyers willing to splash out more in order to fuel their expansion plans. This will inevitably have some consequences going forward as most of this readily available cash comes at a much higher cost then what the traditional bank driven finance would have”, he noted.
Lazaridis concluded that “as to the side of the sellers, there are few out there willing to part with their assets at lower prices than they have been used to seeing over the past couple of months, and holding a more optimistic view themselves, they are only truly willing sellers at the currently prevailing prices. The question that holds is how long will this new price reality hold? And will freight rates eventually show the recovery all these prospective buyers are hoping for?”, he wondered.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Tuesday, 16 September 14
INDONESIAN GOVERNMENT DECLARED HBA SUFFERED ANOTHER SETBACK IN SEPTEMBER
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia revised down the coal bench mark price once again in September. HBA for ...
Tuesday, 16 September 14
INDONESIAN COAL OUTPUT WON'T EXCEED 421M TONS: GOVT - JP
The government is optimistic that it will meet its coal production target for this year, which caps nationwide production at a flat number compared ...
Monday, 15 September 14
CHINA'S COAL PROPOSALS LEAVE SOME HOPE FOR EXPORTERS - DAILY NEWS
When the best thing you can say about new policies is that they aren’t as bad as they could have been, then you know your industry is in deep ...
Monday, 15 September 14
SUB-BIT FOB INDONESIA COAL SWAP, JANUARY 2015 DELIVERY GAINED DAY ON DAY AND WEEK ON WEEK
COALspot.com: Indonesian coal swaps for average October 2014 increased US$ 0.40 (+0.78%) day on day and US$ 0.55 (+1.08%) per mt week on week. The ...
Monday, 15 September 14
CFR SOUTH CHINA COAL SWAP GAINED DAY ON DAY AND WEEK ON WEEK
COALspot.com: API 8 CFR South China Coal swap for delivery in October 2014 decreased US$ 2.30 (-3.36%) month over month, but increased day on day a ...
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- European Bulk Services B.V. - Netherlands
- Antam Resourcindo - Indonesia
- OPG Power Generation Pvt Ltd - India
- Standard Chartered Bank - UAE
- PowerSource Philippines DevCo
- Economic Council, Georgia
- Mercator Lines Limited - India
- Straits Asia Resources Limited - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Barasentosa Lestari - Indonesia
- Goldman Sachs - Singapore
- Baramulti Group, Indonesia
- Indika Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Chamber of Mines of South Africa
- Binh Thuan Hamico - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- PetroVietnam Power Coal Import and Supply Company
- Altura Mining Limited, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Thiess Contractors Indonesia
- Holcim Trading Pte Ltd - Singapore
- Videocon Industries ltd - India
- Karaikal Port Pvt Ltd - India
- The University of Queensland
- Posco Energy - South Korea
- Ceylon Electricity Board - Sri Lanka
- Coastal Gujarat Power Limited - India
- Minerals Council of Australia
- Agrawal Coal Company - India
- Jaiprakash Power Ventures ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SN Aboitiz Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- White Energy Company Limited
- Intertek Mineral Services - Indonesia
- Siam City Cement - Thailand
- New Zealand Coal & Carbon
- Mjunction Services Limited - India
- Merrill Lynch Commodities Europe
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- SMC Global Power, Philippines
- Australian Commodity Traders Exchange
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- The State Trading Corporation of India Ltd
- Banpu Public Company Limited - Thailand
- Marubeni Corporation - India
- Cigading International Bulk Terminal - Indonesia
- Savvy Resources Ltd - HongKong
- Pipit Mutiara Jaya. PT, Indonesia
- Dalmia Cement Bharat India
- Leighton Contractors Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- Electricity Generating Authority of Thailand
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bukit Makmur.PT - Indonesia
- LBH Netherlands Bv - Netherlands
- Bharathi Cement Corporation - India
- TeaM Sual Corporation - Philippines
- Gujarat Sidhee Cement - India
- Kartika Selabumi Mining - Indonesia
- Kumho Petrochemical, South Korea
- Therma Luzon, Inc, Philippines
- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- Bahari Cakrawala Sebuku - Indonesia
- GVK Power & Infra Limited - India
- Anglo American - United Kingdom
- Oldendorff Carriers - Singapore
- Kapuas Tunggal Persada - Indonesia
- The Treasury - Australian Government
- Metalloyd Limited - United Kingdom
- Madhucon Powers Ltd - India
- Parry Sugars Refinery, India
- Bulk Trading Sa - Switzerland
- Jorong Barutama Greston.PT - Indonesia
- Mercuria Energy - Indonesia
- Indian Energy Exchange, India
- Ministry of Finance - Indonesia
- IEA Clean Coal Centre - UK
- Rashtriya Ispat Nigam Limited - India
- Rio Tinto Coal - Australia
- Deloitte Consulting - India
- Central Electricity Authority - India
- Sical Logistics Limited - India
- Borneo Indobara - Indonesia
- Meenaskhi Energy Private Limited - India
- Meralco Power Generation, Philippines
- Larsen & Toubro Limited - India
- CNBM International Corporation - China
- Energy Link Ltd, New Zealand
- IHS Mccloskey Coal Group - USA
- Chettinad Cement Corporation Ltd - India
- Sarangani Energy Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Medco Energi Mining Internasional
- San Jose City I Power Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Bayan Resources Tbk. - Indonesia
- Tata Chemicals Ltd - India
- Energy Development Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Africa Commodities Group - South Africa
- Aditya Birla Group - India
- Bukit Asam (Persero) Tbk - Indonesia
- Cement Manufacturers Association - India
- Attock Cement Pakistan Limited
- Wood Mackenzie - Singapore
- Global Green Power PLC Corporation, Philippines
- Eastern Coal Council - USA
- Samtan Co., Ltd - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Grasim Industreis Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Singapore Mercantile Exchange
- Star Paper Mills Limited - India
- Bukit Baiduri Energy - Indonesia
- Semirara Mining Corp, Philippines
- Salva Resources Pvt Ltd - India
- Interocean Group of Companies - India
- Semirara Mining and Power Corporation, Philippines
- Port Waratah Coal Services - Australia
- Kaltim Prima Coal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Coal and Oil Company - UAE
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- Jindal Steel & Power Ltd - India
- Globalindo Alam Lestari - Indonesia
- Ministry of Transport, Egypt
- Formosa Plastics Group - Taiwan
- Vizag Seaport Private Limited - India
- Electricity Authority, New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Miang Besar Coal Terminal - Indonesia
- Malabar Cements Ltd - India
- Lanco Infratech Ltd - India
- Makarim & Taira - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Billiton Holdings Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- Bangladesh Power Developement Board
- Latin American Coal - Colombia
- MS Steel International - UAE
- Planning Commission, India
- Xindia Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Price Waterhouse Coopers - Russia
- Krishnapatnam Port Company Ltd. - India
- Wilmar Investment Holdings
- Siam City Cement PLC, Thailand
- Renaissance Capital - South Africa
- VISA Power Limited - India
- Orica Mining Services - Indonesia
- Uttam Galva Steels Limited - India
- Sojitz Corporation - Japan
- Romanian Commodities Exchange
- Kobexindo Tractors - Indoneisa
- Global Coal Blending Company Limited - Australia
- Indian Oil Corporation Limited
- Orica Australia Pty. Ltd.
- Sinarmas Energy and Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Mines - Canada
- Trasteel International SA, Italy
- Gujarat Mineral Development Corp Ltd - India
- Bhushan Steel Limited - India
- Kepco SPC Power Corporation, Philippines
- McConnell Dowell - Australia
- Commonwealth Bank - Australia
- GAC Shipping (India) Pvt Ltd
- Tamil Nadu electricity Board
- Global Business Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- Thai Mozambique Logistica
- Power Finance Corporation Ltd., India
- Indonesian Coal Mining Association
- Vedanta Resources Plc - India
- International Coal Ventures Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Petron Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- GMR Energy Limited - India
- Central Java Power - Indonesia
- PTC India Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Edison Trading Spa - Italy
- Kalimantan Lumbung Energi - Indonesia
- Eastern Energy - Thailand
- India Bulls Power Limited - India
- Sindya Power Generating Company Private Ltd
- Directorate Of Revenue Intelligence - India
- Coalindo Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Ambuja Cements Ltd - India
- Simpson Spence & Young - Indonesia
- Indogreen Group - Indonesia
- Sakthi Sugars Limited - India
- Riau Bara Harum - Indonesia
- Bhatia International Limited - India
- Mintek Dendrill Indonesia
- Georgia Ports Authority, United States
- Australian Coal Association
- Independent Power Producers Association of India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- ASAPP Information Group - India
- Alfred C Toepfer International GmbH - Germany
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