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, 25 August 14
4TH ANNUAL FLOATING TERMINALS
4th Annual Floating Terminals
18-20 Nov 2014
Intercontinental Jakarta Midplaza,
Indonesia
Web Site
The Floating Terminal c ...
Monday, 25 August 14
THE BALTIC DRY IS JUMPING, BUT DON'T DRAW ANY BROAD CONCLUSIONS - NASDAQ
Those who consistently preach doom and gloom and see an economic apocalypse around every corner would make me laugh if it weren’t for the fac ...
Monday, 25 August 14
COAL CEOS: DEMISE OF COAL 'EXAGGERATED' - MARK WILCOX
By Mark Wilcox
Heads of some of the largest coal companies in Wyoming are saying the demise of coal has been exaggerated, though the industry def ...
Monday, 25 August 14
INDO COAL SWAPS W-O-W: NEGATIVE; M-O-M: POSITIVE
COALspot.com: Indonesian coal swaps for average September 2014 decreased US$ 0.15 (-0.28%) day on day and US$ 0.65 (-1.19%) per mt week on week. Th ...
Monday, 25 August 14
API 8 CFR SOUTH CHINA COAL SWAP GAINED DAY OVER DAY AND MONTH OVER MONTH
COALspot.com: API 8 CFR South China Coal swap for delivery in September 2014 increased US$ 0.30 (+0.44%) day on day and decreased US$ 0.20 (- ...
|
|
|
Showing 3526 to 3530 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- London Commodity Brokers - England
- Tata Chemicals Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Interocean Group of Companies - India
- Cement Manufacturers Association - India
- Latin American Coal - Colombia
- Indonesian Coal Mining Association
- Agrawal Coal Company - India
- Kapuas Tunggal Persada - Indonesia
- Kumho Petrochemical, South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Maharashtra Electricity Regulatory Commission - India
- The Treasury - Australian Government
- Kepco SPC Power Corporation, Philippines
- PowerSource Philippines DevCo
- CIMB Investment Bank - Malaysia
- San Jose City I Power Corp, Philippines
- Global Business Power Corporation, Philippines
- Marubeni Corporation - India
- Electricity Authority, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Africa Commodities Group - South Africa
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- Bangladesh Power Developement Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Wilmar Investment Holdings
- Globalindo Alam Lestari - Indonesia
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- Indogreen Group - Indonesia
- Central Electricity Authority - India
- Videocon Industries ltd - India
- Indian Energy Exchange, India
- Borneo Indobara - Indonesia
- Mercator Lines Limited - India
- Madhucon Powers Ltd - India
- Gujarat Sidhee Cement - India
- Heidelberg Cement - Germany
- Coastal Gujarat Power Limited - India
- Australian Coal Association
- Rashtriya Ispat Nigam Limited - India
- Sinarmas Energy and Mining - Indonesia
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Coalindo Energy - Indonesia
- Minerals Council of Australia
- Wood Mackenzie - Singapore
- Therma Luzon, Inc, Philippines
- Price Waterhouse Coopers - Russia
- Merrill Lynch Commodities Europe
- IHS Mccloskey Coal Group - USA
- Makarim & Taira - Indonesia
- Bayan Resources Tbk. - Indonesia
- Vizag Seaport Private Limited - India
- Economic Council, Georgia
- Timah Investasi Mineral - Indoneisa
- Aboitiz Power Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Sojitz Corporation - Japan
- Sree Jayajothi Cements Limited - India
- Chamber of Mines of South Africa
- Intertek Mineral Services - Indonesia
- Larsen & Toubro Limited - India
- Energy Link Ltd, New Zealand
- Barasentosa Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- Deloitte Consulting - India
- South Luzon Thermal Energy Corporation
- Dalmia Cement Bharat India
- Renaissance Capital - South Africa
- SMG Consultants - Indonesia
- Anglo American - United Kingdom
- Bharathi Cement Corporation - India
- Mintek Dendrill Indonesia
- Trasteel International SA, Italy
- Karbindo Abesyapradhi - Indoneisa
- Indian Oil Corporation Limited
- Semirara Mining and Power Corporation, Philippines
- The University of Queensland
- New Zealand Coal & Carbon
- PNOC Exploration Corporation - Philippines
- IEA Clean Coal Centre - UK
- Kobexindo Tractors - Indoneisa
- International Coal Ventures Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ICICI Bank Limited - India
- Iligan Light & Power Inc, Philippines
- Romanian Commodities Exchange
- Baramulti Group, Indonesia
- Global Coal Blending Company Limited - Australia
- Star Paper Mills Limited - India
- Banpu Public Company Limited - Thailand
- GAC Shipping (India) Pvt Ltd
- Standard Chartered Bank - UAE
- Orica Mining Services - Indonesia
- Eastern Energy - Thailand
- CNBM International Corporation - China
- India Bulls Power Limited - India
- Kideco Jaya Agung - Indonesia
- Port Waratah Coal Services - Australia
- Jaiprakash Power Ventures ltd
- Simpson Spence & Young - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kaltim Prima Coal - Indonesia
- Malabar Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Antam Resourcindo - Indonesia
- Meralco Power Generation, Philippines
- SMC Global Power, Philippines
- Cigading International Bulk Terminal - Indonesia
- Bukit Makmur.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Sindya Power Generating Company Private Ltd
- Global Green Power PLC Corporation, Philippines
- Eastern Coal Council - USA
- Parry Sugars Refinery, India
- Krishnapatnam Port Company Ltd. - India
- VISA Power Limited - India
- Mercuria Energy - Indonesia
- ASAPP Information Group - India
- Rio Tinto Coal - Australia
- Ceylon Electricity Board - Sri Lanka
- Binh Thuan Hamico - Vietnam
- Bhatia International Limited - India
- Xindia Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- GVK Power & Infra Limited - India
- Ministry of Finance - Indonesia
- Toyota Tsusho Corporation, Japan
- Pendopo Energi Batubara - Indonesia
- Maheswari Brothers Coal Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Parliament of New Zealand
- Manunggal Multi Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Australian Commodity Traders Exchange
- Tamil Nadu electricity Board
- The State Trading Corporation of India Ltd
- GMR Energy Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Georgia Ports Authority, United States
- Karaikal Port Pvt Ltd - India
- Mjunction Services Limited - India
- Riau Bara Harum - Indonesia
- Savvy Resources Ltd - HongKong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Grasim Industreis Ltd - India
- Energy Development Corp, Philippines
- Petron Corporation, Philippines
- Ministry of Transport, Egypt
- Thai Mozambique Logistica
- Bhushan Steel Limited - India
- Sical Logistics Limited - India
- Siam City Cement - Thailand
- Altura Mining Limited, Indonesia
- Carbofer General Trading SA - India
- Holcim Trading Pte Ltd - Singapore
- Metalloyd Limited - United Kingdom
- Vedanta Resources Plc - India
- Samtan Co., Ltd - South Korea
- Edison Trading Spa - Italy
- Sakthi Sugars Limited - India
- Electricity Generating Authority of Thailand
- Ambuja Cements Ltd - India
- Planning Commission, India
- Medco Energi Mining Internasional
- PTC India Limited - India
- Indika Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Orica Australia Pty. Ltd.
- Sarangani Energy Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Ind-Barath Power Infra Limited - India
- Thiess Contractors Indonesia
- Central Java Power - Indonesia
- Singapore Mercantile Exchange
- Chettinad Cement Corporation Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Attock Cement Pakistan Limited
- Directorate Of Revenue Intelligence - India
- Ministry of Mines - Canada
- Semirara Mining Corp, Philippines
- Bulk Trading Sa - Switzerland
- LBH Netherlands Bv - Netherlands
- GN Power Mariveles Coal Plant, Philippines
- Posco Energy - South Korea
- Independent Power Producers Association of India
- Bhoruka Overseas - Indonesia
- MS Steel International - UAE
- Jorong Barutama Greston.PT - Indonesia
- Bukit Baiduri Energy - Indonesia
- Oldendorff Carriers - Singapore
- McConnell Dowell - Australia
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Lanco Infratech Ltd - India
- Formosa Plastics Group - Taiwan
- Pipit Mutiara Jaya. PT, Indonesia
- Goldman Sachs - Singapore
- Uttam Galva Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Straits Asia Resources Limited - Singapore
- European Bulk Services B.V. - Netherlands
- Siam City Cement PLC, Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Jindal Steel & Power Ltd - India
|
| |
| |
|
