We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 16 December 14
THIS PRICE IS A STEAL - EVA TZIMA
 COALspot.com: Despite concerns that the slowdown of the Chinese economy would affect imports of iron ore, it seems that this has not been the case so far. The Chinese have been importing record volumes of iron ore throughout the year, taking advantage of softening prices, which touched their lowest level in five years a few days ago. Firm supply from Brazil and Australia has also supported this trend. Both producers, with a combined global market share of over 70%, have been steadily increasing their production post 2000, mainly guided by the mandate of accelerating Chinese appetite.
The boom of economic development in China has in turn made the country “the gift that keeps on giving” for mineral exporters across the globe. Big iron ore producers have been speeding up their sup-ply post 2000, mainly relying on what seemed as a race by China to match its infrastructure with its growth, but somewhere along the lines the fact that the gradual westernization of China, would at some point translate into deceleration of steel consumption was probably overlooked by the market, which brings us to today.
The growth of steel consumption in the country turned red for the first time in over two decades. The slowdown in property construction has quickly curbed the domestic need for steel and consequent-ly iron ore to a significant degree, which translated to excess production of steel as well as increasing iron ore stockpiles. In turn prices for both commodities started sliding, kick starting a vicious cycle of downward pressure.
From one hand, iron ore production was not tamed by the big ex-porters in order to support prices. As big miners in both Australia and Brazil have designed their production capacity around an economy of scale model, cutting down their production to match softening demand growth has not been an option to them, while this also gave them the means to start squeezing the bottom line of their Chinese competitors. At the same time, the Chinese themselves remained buyers of iron ore, enticed by the new attractive price levels they have long desired, with local steel producers remaining active de-spite the fact that domestic demand had started to scale back significantly. That led to surging exports, with cheap Chinese steel flooding the markets, further weighing on global prices.
In both iron ore and steel markets the prospects remain dim, with no evidence suggesting that a reversal is imminent. November was the second lowest month of the year in terms of Chinese iron ore imports, while the country’s exports of steel surged to a record high. Exhausting the stallion of the developing economies in the “becoming a developed country” race, means that in the not so distant future, China could see its growing appetite for growth linked commodities squeezed further. It is often said lately that India or other developing economies could step up to fill in the demand gap created by China, but let’s not forget that history doesn’t always repeat itself.
The truth is that the world in which China emerged as the big economy it currently is, is a very different place today. Developing economies nowadays cannot rely on developed ones to accelerate their growth in the same degree they used to, as most of the latter still struggle themselves with ailing growth, while at the same time and even most importantly, the belief that free trade is always affected during periods of economic crisis is becoming more evident these days. India has persistently tried to promote the “Make in India” and although the policy has met little success so far, Prime Minister Modi has made the idea of stop relying on imports for some of the most important commodities and start using domestic reserves, his personal goal.
My opinion is that more countries will try to protect their domestic production amidst evidence that the path out of the economic crisis now appears longer than what we originally thought it would be. In doing so, they will have to allow for ample room for protectionism measures to be applied, setting limits on quantity and/or price of imports, in order to support domestic production instead, which is exactly the opposite of what the extrovert in nature shipping industry needs.
Eva Tzima
Research Analyst
Compiled by:
Intermodal Research & Valuations
About the Author
Eva Tzima has experience of more than a decade as a financial analyst and has focused on the shipping industry through private equity projects as well as maritime stock analysis. Since 2012 she has been working as a Research analyst at Intermodal Shipbrokers Co., where she currently holds the position of Head of Research, focusing in the specific analysis of the SnP, Newbuilding and Demolition markets across the Dry Bulk, Tanker, Container and Gas Carrier sectors.
Previous to her current post she worked as an investment manager for a privately owned portfolio and in Trafalgar Asset Managers Ltd in London, mainly focusing in Private Equity Projects in the shipping, energy and aircraft sectors, as well as in Primary and Secondary Debt investments. During her employment in Trafalgar she acted as a director across a number of boards of entities affiliated to Trafalgar.
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.
|
|
Monday, 13 October 14
INDONESIAN COAL SWAPS FOR DELIVERY Q4' 2014 GAINED WEEK ON WEEK AND DAY ON DAY
COALspot.com: Indonesian coal swaps for delivery Q4' 2014 gained week on week and day on day.
The swap lost US$ 0.13 (-0.25%) month on mon ...
Monday, 13 October 14
Q1' 2015 CFR SOUTH CHINA COAL SWAP CLOSED US$ 0.31 PMT HIGHER THAN Q4' 2014 CLOSING
COALspot.com: API 8 CFR South China Coal swap for Q4’ 2014 delivery decreased US$ 0.66 (-1.00%) month over month and US$ 0.40 (-0.61%) ...
Sunday, 12 October 14
INDONESIA TO INDIA FREIGHT RATES ARE EXPECTED TO BE WEAK - VISTAAR
COALspot.com: This week all the segments softened. The BDI down 7.13 pct week on week and closed below 1000 points at 963 points.
The Cape ind ...
Saturday, 11 October 14
COAL PRODUCTION RISES ONLY SLIGHTLY AS GOVT LIMITS MINING OPERATIONS - THE JAKARTA POST
Indonesian coal production rose by only 4 percent in the first nine months of this year, a relatively low increase compared to previous years, as t ...
Friday, 10 October 14
INDONESIA TO DEVELOP DOWNSTREAM COAL INDUSTRY - JP
The government is planning to launch a program to develop the downstream coal industry to increase the commodity’s added value, an official h ...
|
|
|
Showing 3436 to 3440 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Samtan Co., Ltd - South Korea
- Ministry of Transport, Egypt
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement - Thailand
- European Bulk Services B.V. - Netherlands
- GVK Power & Infra Limited - India
- TeaM Sual Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Mintek Dendrill Indonesia
- Sojitz Corporation - Japan
- Goldman Sachs - Singapore
- Timah Investasi Mineral - Indoneisa
- White Energy Company Limited
- Formosa Plastics Group - Taiwan
- Binh Thuan Hamico - Vietnam
- Semirara Mining and Power Corporation, Philippines
- Eastern Coal Council - USA
- Medco Energi Mining Internasional
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Sinarmas Energy and Mining - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Riau Bara Harum - Indonesia
- Toyota Tsusho Corporation, Japan
- Holcim Trading Pte Ltd - Singapore
- IEA Clean Coal Centre - UK
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- Vedanta Resources Plc - India
- Mercator Lines Limited - India
- Altura Mining Limited, Indonesia
- Globalindo Alam Lestari - Indonesia
- Karaikal Port Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Power Finance Corporation Ltd., India
- Indonesian Coal Mining Association
- Standard Chartered Bank - UAE
- Ministry of Mines - Canada
- Sarangani Energy Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Merrill Lynch Commodities Europe
- ICICI Bank Limited - India
- PNOC Exploration Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- Malabar Cements Ltd - India
- McConnell Dowell - Australia
- Sakthi Sugars Limited - India
- PowerSource Philippines DevCo
- Baramulti Group, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Port Waratah Coal Services - Australia
- Madhucon Powers Ltd - India
- Pendopo Energi Batubara - Indonesia
- Savvy Resources Ltd - HongKong
- SN Aboitiz Power Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Manunggal Multi Energi - Indonesia
- Trasteel International SA, Italy
- Parliament of New Zealand
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Jindal Steel & Power Ltd - India
- London Commodity Brokers - England
- Intertek Mineral Services - Indonesia
- Jaiprakash Power Ventures ltd
- Salva Resources Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Bulk Trading Sa - Switzerland
- Chamber of Mines of South Africa
- Indika Energy - Indonesia
- Bharathi Cement Corporation - India
- Bayan Resources Tbk. - Indonesia
- PTC India Limited - India
- Independent Power Producers Association of India
- Marubeni Corporation - India
- Ind-Barath Power Infra Limited - India
- Iligan Light & Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Bhushan Steel Limited - India
- Central Java Power - Indonesia
- Xindia Steels Limited - India
- Posco Energy - South Korea
- Wood Mackenzie - Singapore
- Cigading International Bulk Terminal - Indonesia
- Ministry of Finance - Indonesia
- Kartika Selabumi Mining - Indonesia
- Simpson Spence & Young - Indonesia
- New Zealand Coal & Carbon
- CIMB Investment Bank - Malaysia
- MS Steel International - UAE
- Central Electricity Authority - India
- IHS Mccloskey Coal Group - USA
- Edison Trading Spa - Italy
- Indian Energy Exchange, India
- Australian Commodity Traders Exchange
- Ceylon Electricity Board - Sri Lanka
- Electricity Authority, New Zealand
- Metalloyd Limited - United Kingdom
- Commonwealth Bank - Australia
- Deloitte Consulting - India
- ASAPP Information Group - India
- LBH Netherlands Bv - Netherlands
- San Jose City I Power Corp, Philippines
- Sical Logistics Limited - India
- Meenaskhi Energy Private Limited - India
- India Bulls Power Limited - India
- Cement Manufacturers Association - India
- South Luzon Thermal Energy Corporation
- Miang Besar Coal Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Mercuria Energy - Indonesia
- Larsen & Toubro Limited - India
- The Treasury - Australian Government
- Sindya Power Generating Company Private Ltd
- Indogreen Group - Indonesia
- Parry Sugars Refinery, India
- Kumho Petrochemical, South Korea
- Kohat Cement Company Ltd. - Pakistan
- Maheswari Brothers Coal Limited - India
- Renaissance Capital - South Africa
- Attock Cement Pakistan Limited
- AsiaOL BioFuels Corp., Philippines
- Kideco Jaya Agung - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Thai Mozambique Logistica
- International Coal Ventures Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Bangladesh Power Developement Board
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- Heidelberg Cement - Germany
- Price Waterhouse Coopers - Russia
- Economic Council, Georgia
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bhoruka Overseas - Indonesia
- Meralco Power Generation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Minerals Council of Australia
- SMG Consultants - Indonesia
- Africa Commodities Group - South Africa
- Siam City Cement PLC, Thailand
- Energy Link Ltd, New Zealand
- Aboitiz Power Corporation - Philippines
- Tamil Nadu electricity Board
- Kapuas Tunggal Persada - Indonesia
- Coal and Oil Company - UAE
- Singapore Mercantile Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- SMC Global Power, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Kepco SPC Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Energy Development Corp, Philippines
- Eastern Energy - Thailand
- Leighton Contractors Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Lanco Infratech Ltd - India
- Kobexindo Tractors - Indoneisa
- Sree Jayajothi Cements Limited - India
- Latin American Coal - Colombia
- Maharashtra Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- Coastal Gujarat Power Limited - India
- Aditya Birla Group - India
- The State Trading Corporation of India Ltd
- GMR Energy Limited - India
- Rio Tinto Coal - Australia
- Electricity Generating Authority of Thailand
- Petron Corporation, Philippines
- Ambuja Cements Ltd - India
- Orica Mining Services - Indonesia
- Essar Steel Hazira Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Wilmar Investment Holdings
- Planning Commission, India
- Barasentosa Lestari - Indonesia
- Vizag Seaport Private Limited - India
- Borneo Indobara - Indonesia
- Tata Chemicals Ltd - India
- Videocon Industries ltd - India
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- Carbofer General Trading SA - India
- Thiess Contractors Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Chettinad Cement Corporation Ltd - India
- VISA Power Limited - India
- Star Paper Mills Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Asam (Persero) Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Romanian Commodities Exchange
- Anglo American - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Australian Coal Association
- Mjunction Services Limited - India
- Bhatia International Limited - India
- Coalindo Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- The University of Queensland
- Agrawal Coal Company - India
- Uttam Galva Steels Limited - India
- Orica Australia Pty. Ltd.
- Interocean Group of Companies - India
- Neyveli Lignite Corporation Ltd, - India
- Global Coal Blending Company Limited - Australia
- Georgia Ports Authority, United States
- Gujarat Sidhee Cement - India
- Indian Oil Corporation Limited
- Makarim & Taira - Indonesia
|
| |
| |
|
