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Monday, 15 December 14
WILL TANKERS BENEFIT FROM REEMERGENCE OF FLOATING STORAGE PLAYS? - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The tanker market has been seeing high freight rates for some time now, riding on the back of low oil prices, which are boosting demand from developing nations, looking to replenish their stockpiles. However, another factor could also emerge, with the return of floating storage plays. According to the latest report from shipbroker Charles R. Weber, “following strong crude price losses during late 2008 and early 2009, the $45 emergence of a steep contango in crude futures markets supported a surge in demand for tankers to service floating storage contracts. By 2010, as the $30 wheels of the global economy improved on a return to strong growth in $15 emerging economies, the contango curve became steep enough to support $0 floating storage sufficiently to consume through much of 1H10 upwards of 10% of the global VLCC fleet. This lead to stronger earnings for the class with knock on effects for smaller tanker counterparts as overall availability levels declined”.
According to the shipbroker, “when crude prices started observing losses early during 2H14, the reemergence $60 of a contangoed futures curve reignited consideration of floating storage, but $45 little has materialized as the S/bbl storage costs consistently forward crude spreads. With the global demand/supply imbalance having extended through $30 2H14, the unwillingness by OPEC (or more specifically: a prominent contingent of OPEC’s membership) to react through supply cuts, recent downward $15 revisions by key oil forecasting agencies to demand projections implies that a wider imbalance will materialize during 2015. In its latest report, the IEA notes $0 the imbalance with a corresponding rise in implied steep building up of global crude inventories of relative earnings strength (if below present peak levels). How the crude $80 market develops thereafter will likely dictate the course that tanker earnings take through the remainder of 2015. $60 For its part, support from floating storage remains off the table due to the $40 prohibitively high cost to procure tonnage for such a purpose”.
C.R. Weber noted that “at present assessments, a 6 month floating storage contract off Singapore would equate to $20 a cost ~$5.84/bbl while the spread between Brent’s front month and July contracts stands at $3.72/bbl Further into 2015, however, continued crude price losses which could be inferred by the |EA’s projected widening of the global demand/supply $40 imbalance could lead to crude supply cuts to support prices. Though such a $30 scenario represents a threat to crude tanker demand, a simultaneous correcting of freight markets and steepening of contango curves could create the requisite $20 economics to support floating storage. This would likely place a floor on prospective freight downside while bridging the market to a subsequent $10 rebalancing of crude markets, thus limiting an impact on crude tanker earnings”, the shipbroker concluded.
Meanwhile, in the crude tanker markets this week, in the VLCC segment “rates firmed this week as charterers worked through much of the remainder of the Middle East market’s December program while owners became more bullish in a late reaction to narrower supply/demand fundamentals. Stronger demand in the Middle East market – where the December program has already yielded the most cargoes since the April program and is poised to conclude with the most since the February market – has coincided with a recent demand acceleration in the West Africa market. As both of these areas draw from Middle East positions, the region’s supply/demand positioning is at its narrowest level since 2008 with just 5 surplus positions through end? December dates. With 118 Middle East December cargoes covered to date and the program expected to conclude with 121, the 8 units which remain on position lists to cover the remaining stems appear set to observe premiums to present assessments. How aggressively charterers progress into the January program during the upcoming week will thus likely dictate the direction that rates will take for early January cargoes. Given shortened working weeks during the final two weeks of the year, charterers could reach forward on dates (as the market already is observing) during the upcoming week to cover requirements ahead of the holidays. Against the tight supply/demand profile, this would imply an extending of the present rate rally. Further forward, as the market moves past the first half of the January program and forward fixing windows normalize, the reappearance of units presently on trades to points in the east on Middle East position lists should see rates start to correct”, C.R. Weber concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Wednesday, 03 December 14
SHIPPING MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
The dry bulk market seems unable to turn sentiment round and is still looking for direction. The BCI's 887-point free fall last week had an obv ...
Wednesday, 03 December 14
CAPESIZE DRY BULK CARRIERS ENTER 2015 WITH MIXED FORTUNES, WITH A POSITIVE AND A NEGATIVE SCENARIO BOTH EMERGING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The future of the Capesize dry bulk market appears to be engulfed from mixed “feelings” among analysts and market participants, despite ...
Tuesday, 02 December 14
KEY PLAYERS SHED NEW PERSPECTIVES ON COAL MARKETS
Press Release: Singapore’s ONLY and longest established Coal Trade event. Whilst Coal prices remain challenging, there is widespread consensu ...
Tuesday, 02 December 14
KOMIPO INVITES BIDS FOR 585,000 METRIC TONS OF COAL FOR Q1'15
COALspot.com - Korea Midland Power Co. Ltd. (KOMIPO) is inviting bids for the supply of 585,000 Metric Tons of coal. According to invitation, 5700 ...
Tuesday, 02 December 14
U.S WEEKLY COAL PRODUCTION FELL 1.4% WEEK ON WEEK - EIA
COALspot.com – United States the world's one of the largest coal producers, produced approximately 18.6 million short tons (mmst) o ...
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- Videocon Industries ltd - India
- Bhoruka Overseas - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Grasim Industreis Ltd - India
- Makarim & Taira - Indonesia
- Central Electricity Authority - India
- McConnell Dowell - Australia
- Kapuas Tunggal Persada - Indonesia
- San Jose City I Power Corp, Philippines
- Antam Resourcindo - Indonesia
- Kobexindo Tractors - Indoneisa
- Essar Steel Hazira Ltd - India
- London Commodity Brokers - England
- CNBM International Corporation - China
- Tamil Nadu electricity Board
- PNOC Exploration Corporation - Philippines
- Wood Mackenzie - Singapore
- Eastern Coal Council - USA
- Price Waterhouse Coopers - Russia
- Sical Logistics Limited - India
- ICICI Bank Limited - India
- South Luzon Thermal Energy Corporation
- Star Paper Mills Limited - India
- Jaiprakash Power Ventures ltd
- Salva Resources Pvt Ltd - India
- Planning Commission, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Directorate Of Revenue Intelligence - India
- Australian Coal Association
- Parliament of New Zealand
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- Indian Oil Corporation Limited
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- Sakthi Sugars Limited - India
- Coalindo Energy - Indonesia
- Africa Commodities Group - South Africa
- Economic Council, Georgia
- Orica Australia Pty. Ltd.
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- Parry Sugars Refinery, India
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- Petron Corporation, Philippines
- Siam City Cement - Thailand
- Sojitz Corporation - Japan
- Edison Trading Spa - Italy
- Sindya Power Generating Company Private Ltd
- Minerals Council of Australia
- Krishnapatnam Port Company Ltd. - India
- Goldman Sachs - Singapore
- Jindal Steel & Power Ltd - India
- SMG Consultants - Indonesia
- Ministry of Transport, Egypt
- The University of Queensland
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- IEA Clean Coal Centre - UK
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- Altura Mining Limited, Indonesia
- Aboitiz Power Corporation - Philippines
- India Bulls Power Limited - India
- Sarangani Energy Corporation, Philippines
- Mintek Dendrill Indonesia
- Samtan Co., Ltd - South Korea
- MS Steel International - UAE
- Australian Commodity Traders Exchange
- Intertek Mineral Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- Timah Investasi Mineral - Indoneisa
- Mjunction Services Limited - India
- Ind-Barath Power Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Karbindo Abesyapradhi - Indoneisa
- Ceylon Electricity Board - Sri Lanka
- Aditya Birla Group - India
- Savvy Resources Ltd - HongKong
- Global Green Power PLC Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Standard Chartered Bank - UAE
- GN Power Mariveles Coal Plant, Philippines
- Miang Besar Coal Terminal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Vedanta Resources Plc - India
- Merrill Lynch Commodities Europe
- Maharashtra Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- GMR Energy Limited - India
- Billiton Holdings Pty Ltd - Australia
- Binh Thuan Hamico - Vietnam
- Straits Asia Resources Limited - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thiess Contractors Indonesia
- Gujarat Electricity Regulatory Commission - India
- Barasentosa Lestari - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Oldendorff Carriers - Singapore
- Toyota Tsusho Corporation, Japan
- Borneo Indobara - Indonesia
- Port Waratah Coal Services - Australia
- Power Finance Corporation Ltd., India
- Bangladesh Power Developement Board
- Bulk Trading Sa - Switzerland
- Siam City Cement PLC, Thailand
- Trasteel International SA, Italy
- Coastal Gujarat Power Limited - India
- Karaikal Port Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- AsiaOL BioFuels Corp., Philippines
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- Semirara Mining Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Cement Manufacturers Association - India
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- PetroVietnam Power Coal Import and Supply Company
- TeaM Sual Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- Gujarat Sidhee Cement - India
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- Kumho Petrochemical, South Korea
- Heidelberg Cement - Germany
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- New Zealand Coal & Carbon
- Orica Mining Services - Indonesia
- Electricity Generating Authority of Thailand
- Indika Energy - Indonesia
- The Treasury - Australian Government
- Electricity Authority, New Zealand
- SN Aboitiz Power Inc, Philippines
- Ambuja Cements Ltd - India
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- Interocean Group of Companies - India
- The State Trading Corporation of India Ltd
- Cigading International Bulk Terminal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Indonesian Coal Mining Association
- Formosa Plastics Group - Taiwan
- Indian Energy Exchange, India
- Manunggal Multi Energi - Indonesia
- Commonwealth Bank - Australia
- Globalindo Alam Lestari - Indonesia
- Larsen & Toubro Limited - India
- Semirara Mining and Power Corporation, Philippines
- Central Java Power - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Romanian Commodities Exchange
- Bhatia International Limited - India
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Simpson Spence & Young - Indonesia
- Energy Development Corp, Philippines
- Maheswari Brothers Coal Limited - India
- Posco Energy - South Korea
- Dalmia Cement Bharat India
- Meralco Power Generation, Philippines
- GVK Power & Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- Thai Mozambique Logistica
- SMC Global Power, Philippines
- Baramulti Group, Indonesia
- Lanco Infratech Ltd - India
- Meenaskhi Energy Private Limited - India
- Deloitte Consulting - India
- Madhucon Powers Ltd - India
- Sree Jayajothi Cements Limited - India
- Global Coal Blending Company Limited - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Neyveli Lignite Corporation Ltd, - India
- Sinarmas Energy and Mining - Indonesia
- Attock Cement Pakistan Limited
- IHS Mccloskey Coal Group - USA
- Bukit Baiduri Energy - Indonesia
- Chamber of Mines of South Africa
- Bharathi Cement Corporation - India
- Agrawal Coal Company - India
- Xindia Steels Limited - India
- Renaissance Capital - South Africa
- Mercuria Energy - Indonesia
- Rio Tinto Coal - Australia
- Medco Energi Mining Internasional
- Indogreen Group - Indonesia
- Global Business Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Eastern Energy - Thailand
- Independent Power Producers Association of India
- Kaltim Prima Coal - Indonesia
- Ministry of Mines - Canada
- OPG Power Generation Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- CIMB Investment Bank - Malaysia
- Therma Luzon, Inc, Philippines
- Tata Chemicals Ltd - India
- Energy Link Ltd, New Zealand
- Uttam Galva Steels Limited - India
- VISA Power Limited - India
- Coal and Oil Company - UAE
- Latin American Coal - Colombia
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Carbofer General Trading SA - India
- Georgia Ports Authority, United States
- Bhushan Steel Limited - India
- LBH Netherlands Bv - Netherlands
- Anglo American - United Kingdom
- PTC India Limited - India
- Bukit Makmur.PT - Indonesia
- Ministry of Finance - Indonesia
- Malabar Cements Ltd - India
- Banpu Public Company Limited - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Leighton Contractors Pty Ltd - Australia
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