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, 22 September 14
CFR SOUTH CHINA COAL SWAPS LOST ON DAY, WEEK AND MONTH
COALspot.com: API 8 CFR South China Coal swap for delivery in October 2014 decreased US$ 3.10 (-4.50%) month over month and $ 0.95 PT MT week over ...
Monday, 22 September 14
INDONESIAN COAL SWAPS LOST WEEK ON WEEK AND MONTH OVER MONTH
COALspot.com: Indonesian coal swaps for average October 2014 increased US$ 0.35 (+0.69%) day on day and lost US$ 0.30 (-0.58%) per mt week on week. ...
Sunday, 21 September 14
CAPE INDEX LOST 17% W-O-W ; BALTIC DRY PLUNGES 106 POINTS
COALspot.com: This week the freight market softened a bit compared to last week.
BDI fell 8.97% week on week and closed BDI at 1075 points on ...
Friday, 19 September 14
U.S. WEEKLY COAL PRODUCTION RELATIVELY FLAT AT +0.1% - EIA
COALspot.com – United States the world's second largest coal producer, produced approximately 19.20 million short tons (mmst) of coal in ...
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 materi ...
|
|
|
Showing 3476 to 3480 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bukit Makmur.PT - Indonesia
- Therma Luzon, Inc, Philippines
- Energy Development Corp, Philippines
- PTC India Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Trasteel International SA, Italy
- Meenaskhi Energy Private Limited - India
- Semirara Mining Corp, Philippines
- Heidelberg Cement - Germany
- Jindal Steel & Power Ltd - India
- Australian Coal Association
- Bukit Asam (Persero) Tbk - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Sidhee Cement - India
- Madhucon Powers Ltd - India
- Coalindo Energy - Indonesia
- Coal and Oil Company - UAE
- Mintek Dendrill Indonesia
- Uttam Galva Steels Limited - India
- Cigading International Bulk Terminal - Indonesia
- Star Paper Mills Limited - India
- Central Java Power - Indonesia
- Makarim & Taira - Indonesia
- MS Steel International - UAE
- Ministry of Finance - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Riau Bara Harum - Indonesia
- Sree Jayajothi Cements Limited - India
- Independent Power Producers Association of India
- South Luzon Thermal Energy Corporation
- Ministry of Mines - Canada
- Kobexindo Tractors - Indoneisa
- Edison Trading Spa - Italy
- Interocean Group of Companies - India
- AsiaOL BioFuels Corp., Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Baiduri Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- ASAPP Information Group - India
- Medco Energi Mining Internasional
- Eastern Energy - Thailand
- Aboitiz Power Corporation - Philippines
- Krishnapatnam Port Company Ltd. - India
- Global Coal Blending Company Limited - Australia
- Sindya Power Generating Company Private Ltd
- ICICI Bank Limited - India
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
- Larsen & Toubro Limited - India
- Sinarmas Energy and Mining - Indonesia
- Cement Manufacturers Association - India
- Neyveli Lignite Corporation Ltd, - India
- Goldman Sachs - Singapore
- PowerSource Philippines DevCo
- Wilmar Investment Holdings
- Ministry of Transport, Egypt
- IEA Clean Coal Centre - UK
- Sakthi Sugars Limited - India
- Maheswari Brothers Coal Limited - India
- The University of Queensland
- Commonwealth Bank - Australia
- Leighton Contractors Pty Ltd - Australia
- India Bulls Power Limited - India
- Indian Energy Exchange, India
- Sojitz Corporation - Japan
- Attock Cement Pakistan Limited
- Kumho Petrochemical, South Korea
- Orica Mining Services - Indonesia
- OPG Power Generation Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Mercator Lines Limited - India
- Agrawal Coal Company - India
- Globalindo Alam Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Altura Mining Limited, Indonesia
- Power Finance Corporation Ltd., India
- Kohat Cement Company Ltd. - Pakistan
- London Commodity Brokers - England
- SN Aboitiz Power Inc, Philippines
- Mercuria Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Petron Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Oldendorff Carriers - Singapore
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Orica Australia Pty. Ltd.
- GAC Shipping (India) Pvt Ltd
- Africa Commodities Group - South Africa
- Dalmia Cement Bharat India
- Bayan Resources Tbk. - Indonesia
- Salva Resources Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- SMG Consultants - Indonesia
- The State Trading Corporation of India Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Miang Besar Coal Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Tata Chemicals Ltd - India
- Kaltim Prima Coal - Indonesia
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- Banpu Public Company Limited - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Xindia Steels Limited - India
- Eastern Coal Council - USA
- Lanco Infratech Ltd - India
- Anglo American - United Kingdom
- Toyota Tsusho Corporation, Japan
- IHS Mccloskey Coal Group - USA
- Ambuja Cements Ltd - India
- Marubeni Corporation - India
- Global Green Power PLC Corporation, Philippines
- Indika Energy - Indonesia
- New Zealand Coal & Carbon
- Minerals Council of Australia
- Renaissance Capital - South Africa
- Aditya Birla Group - India
- Malabar Cements Ltd - India
- Bhatia International Limited - India
- Bulk Trading Sa - Switzerland
- Rashtriya Ispat Nigam Limited - India
- CIMB Investment Bank - Malaysia
- Essar Steel Hazira Ltd - India
- Pendopo Energi Batubara - Indonesia
- Electricity Authority, New Zealand
- Sarangani Energy Corporation, Philippines
- CNBM International Corporation - China
- Borneo Indobara - Indonesia
- Manunggal Multi Energi - Indonesia
- Central Electricity Authority - India
- Bangladesh Power Developement Board
- Savvy Resources Ltd - HongKong
- Gujarat Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Coastal Gujarat Power Limited - India
- San Jose City I Power Corp, Philippines
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- Bhoruka Overseas - Indonesia
- Kepco SPC Power Corporation, Philippines
- McConnell Dowell - Australia
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kartika Selabumi Mining - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Sical Logistics Limited - India
- Indonesian Coal Mining Association
- GMR Energy Limited - India
- SMC Global Power, Philippines
- Rio Tinto Coal - Australia
- PNOC Exploration Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Chamber of Mines of South Africa
- Directorate General of MIneral and Coal - Indonesia
- Australian Commodity Traders Exchange
- Singapore Mercantile Exchange
- Straits Asia Resources Limited - Singapore
- Ind-Barath Power Infra Limited - India
- Bhushan Steel Limited - India
- TeaM Sual Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Vedanta Resources Plc - India
- Kideco Jaya Agung - Indonesia
- Binh Thuan Hamico - Vietnam
- Bharathi Cement Corporation - India
- Carbofer General Trading SA - India
- Global Business Power Corporation, Philippines
- Siam City Cement - Thailand
- The Treasury - Australian Government
- Planning Commission, India
- Tamil Nadu electricity Board
- Indo Tambangraya Megah - Indonesia
- Port Waratah Coal Services - Australia
- Samtan Co., Ltd - South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Siam City Cement PLC, Thailand
- Indogreen Group - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Jaiprakash Power Ventures ltd
- Gujarat Mineral Development Corp Ltd - India
- Videocon Industries ltd - India
- Semirara Mining and Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Economic Council, Georgia
- Price Waterhouse Coopers - Russia
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Kalimantan Lumbung Energi - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Thai Mozambique Logistica
- GVK Power & Infra Limited - India
- Latin American Coal - Colombia
- Merrill Lynch Commodities Europe
- GN Power Mariveles Coal Plant, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Mjunction Services Limited - India
- Indian Oil Corporation Limited
- VISA Power Limited - India
- Deloitte Consulting - India
- Electricity Generating Authority of Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Thiess Contractors Indonesia
|
| |
| |
|
