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Friday, 10 April 15
DRY BULK MARKET'S DOWNFALL ALSO OFFER INVESTMENT BARGAINS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
 Dry bulk market rates have fallen to historical lows over the past few weeks, with no clear path of recovery, at least in the near term. As such, most ship owners are finding themselves caught “between a rock and hard place”. But is it really this the case? Some shipbrokers believe that the current market environment has also one important side effect, the fall of asset prices, which means that dry bulk ships are getting cheaper by the day. As such, cash-rich ship owners could easily take advantage of knock down prices, especially as more and more distressed sales could emerge in the coming weeks.
According to the latest report from shipbroker Allied Shipbroking, “while dry bulk owners start to feel that they have managed to get out of one bad patch, everyone starts to point at yet another up ahead. It seems to be a perfect storm unfolding and one that many will claim was more than expected. Yet amidst poor sentiment in the freight market is were real opportunity is born. The market will eventually recovery and those who manage to take the right pickings during the bottom are often herald as the pioneers and holders of true foresight of what lays ahead. However it is never as clear as that. Taking on any investment decision, as things stand now, seems to be bor-derline crazy. Earnings are hovering at around OPEX levels, often with owners search-ing into their own pockets in order to cover the cost of voyages they have fixed”, said Mr. George Lazaridis, Head of Market Research & Asset Valuations.
He added that “amidst all this pessimism is where you will also find sufficient discounts in the prices of secondhand assets which will provide the ample promise for reward that would com-pensate the current risk. One such size segment that shows to have a good ratio of risk against potential reward is that of the Hadysize vessels and particularly modern vessels on the larger end of the size spectrum (ie.35-38,000dwt). Prices for these assets have never been lower and compared to placing a new contracting on one of the “hungry for orders” shipyards, the discount is more than enough. At a price of US$ 13.5m for a 5 year old unit you get a discount of close to 40% which is equal to close to 8% deprecia-tion in value per year. But one may ask, why is this any different to the larger Supras and Panamaxes which offer similar if not better discounts on modern units?”.
“Handysize vessels seem to hold one more ace up the sleeve. Last month we witnessed yet another drop in size of the fleet in terms of number of vessels. The fleet now stands now stands at 2,437 which is only 3 more vessels then what there was on the 1st of January 2015. This becomes all the more noteworthy when you consider that this has happened during a period in the year were new building deliveries are more intense (everyone wants to benefit from having their vessel written as built in the new year), while also worth noting is the limited orderbook compared to the strong number of vessels in the fleet which are currently over 25 years of age”, said Lazaridis.
Earlier in the week, ship owner Pacific Basin, which is focused in the smaller ship classes, said that “in the Handysize and Handymax segments, where “market spot rates averaged US$5,070 and US$6,110 per day net respectively in the first quarter of 2015, representing a 45% reduction in average rates compared to the same period last year. Newbuilding deliveries deferred from 2014 into January and February coincided with the lunar new year holidays seasonal demand slowdown in China and seasonal export disruptions in key trade areas. Together, these pulled the Baltic Dry Index (BDI) to its lowest since indices began in 1985. However, spot market rates for Handysize and Handymax vessels have gradually improved since lunar new year, albeit from a very low base”, concluded Pacific Basin”.
Lazaridis concluded his analysis by noting that “all this put together allows for better prospects and in essence lower risk while providing comparatively similar asset play returns (in percentage terms) with that of the larger sizes. To close off, it is always worth noting that there is a bright side to every market slump as there is also a dark side to every market boom. Both need caution and proper estimating of the kind of risk/reward one engages with”.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Friday, 10 April 15
US COAL PRODUCTION FELL 4.7% W-O-W : EIA
COALspot.com – United States the second largest coal producer in the world has produced approximately totaled an estimated 17.4 million short ...
Thursday, 09 April 15
CAPESIZE: RATES ARE STILL DISAPPOINTING - FEARNLEYS
Handy
The handy market had a stronger sentiment before the Easter holidays, but have as the bigger panamaxes seen a softening tendency this week. ...
Wednesday, 08 April 15
DRY BULK MARKET SEEMS UNABLE TO CATCH A BREAK - INTERMODAL
COALspot.com: The Dry Bulk market seems unable to catch a break these days.
According to Intermodal, following the market stabilization that p ...
Wednesday, 08 April 15
CHINA BURNS HALF OF THE WORLD'S COAL - CHRISTOPHER T. WHITTY
Intermodal Weekly Market Update
China is the world's largest consumer of coal, using more coal each year than the United States, the Europ ...
Tuesday, 07 April 15
SUB-BIT FOB INDONESIA COAL SWAP KEEPS DROPPING; DROPPED 2% W-W
COALspot.com: Indonesian coal swap for delivery Q2 2015 declined month on month and week over week.
The Q2 swap was declined US$ 2.44 (5.14%) ...
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- Indogreen Group - Indonesia
- McConnell Dowell - Australia
- Romanian Commodities Exchange
- Pendopo Energi Batubara - Indonesia
- Antam Resourcindo - Indonesia
- Kaltim Prima Coal - Indonesia
- Barasentosa Lestari - Indonesia
- Bhatia International Limited - India
- Bayan Resources Tbk. - Indonesia
- Altura Mining Limited, Indonesia
- Vedanta Resources Plc - India
- New Zealand Coal & Carbon
- CNBM International Corporation - China
- Sree Jayajothi Cements Limited - India
- IEA Clean Coal Centre - UK
- Asmin Koalindo Tuhup - Indonesia
- Baramulti Group, Indonesia
- PowerSource Philippines DevCo
- Bukit Asam (Persero) Tbk - Indonesia
- Interocean Group of Companies - India
- Georgia Ports Authority, United States
- PNOC Exploration Corporation - Philippines
- Port Waratah Coal Services - Australia
- Meenaskhi Energy Private Limited - India
- CIMB Investment Bank - Malaysia
- Therma Luzon, Inc, Philippines
- GMR Energy Limited - India
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Thai Mozambique Logistica
- Wilmar Investment Holdings
- Global Green Power PLC Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Larsen & Toubro Limited - India
- Savvy Resources Ltd - HongKong
- Coal and Oil Company - UAE
- ICICI Bank Limited - India
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Grasim Industreis Ltd - India
- Marubeni Corporation - India
- Directorate General of MIneral and Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- AsiaOL BioFuels Corp., Philippines
- Leighton Contractors Pty Ltd - Australia
- Rio Tinto Coal - Australia
- White Energy Company Limited
- Essar Steel Hazira Ltd - India
- Intertek Mineral Services - Indonesia
- Energy Development Corp, Philippines
- Anglo American - United Kingdom
- Merrill Lynch Commodities Europe
- Price Waterhouse Coopers - Russia
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Holcim Trading Pte Ltd - Singapore
- MS Steel International - UAE
- GAC Shipping (India) Pvt Ltd
- Kepco SPC Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Minerals Council of Australia
- Heidelberg Cement - Germany
- Vizag Seaport Private Limited - India
- Coastal Gujarat Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Maheswari Brothers Coal Limited - India
- Ministry of Transport, Egypt
- Petron Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Chettinad Cement Corporation Ltd - India
- Gujarat Sidhee Cement - India
- Wood Mackenzie - Singapore
- Aditya Birla Group - India
- Independent Power Producers Association of India
- Commonwealth Bank - Australia
- Semirara Mining and Power Corporation, Philippines
- London Commodity Brokers - England
- Kumho Petrochemical, South Korea
- Gujarat Mineral Development Corp Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- OPG Power Generation Pvt Ltd - India
- Indika Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- San Jose City I Power Corp, Philippines
- Economic Council, Georgia
- Ministry of Finance - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Sojitz Corporation - Japan
- Indian Energy Exchange, India
- Petrochimia International Co. Ltd.- Taiwan
- Trasteel International SA, Italy
- Agrawal Coal Company - India
- Formosa Plastics Group - Taiwan
- Xindia Steels Limited - India
- Billiton Holdings Pty Ltd - Australia
- Ministry of Mines - Canada
- International Coal Ventures Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Bangladesh Power Developement Board
- Tamil Nadu electricity Board
- Borneo Indobara - Indonesia
- Parry Sugars Refinery, India
- Karbindo Abesyapradhi - Indoneisa
- TeaM Sual Corporation - Philippines
- India Bulls Power Limited - India
- Standard Chartered Bank - UAE
- ASAPP Information Group - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Karaikal Port Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Kobexindo Tractors - Indoneisa
- Salva Resources Pvt Ltd - India
- Bharathi Cement Corporation - India
- Goldman Sachs - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sarangani Energy Corporation, Philippines
- Oldendorff Carriers - Singapore
- Uttam Galva Steels Limited - India
- IHS Mccloskey Coal Group - USA
- LBH Netherlands Bv - Netherlands
- Madhucon Powers Ltd - India
- Electricity Authority, New Zealand
- Jindal Steel & Power Ltd - India
- Siam City Cement PLC, Thailand
- Riau Bara Harum - Indonesia
- Malabar Cements Ltd - India
- Samtan Co., Ltd - South Korea
- Mercator Lines Limited - India
- Bhushan Steel Limited - India
- SMC Global Power, Philippines
- Metalloyd Limited - United Kingdom
- Semirara Mining Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Simpson Spence & Young - Indonesia
- European Bulk Services B.V. - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- The Treasury - Australian Government
- Sindya Power Generating Company Private Ltd
- Central Electricity Authority - India
- Rashtriya Ispat Nigam Limited - India
- Mintek Dendrill Indonesia
- Bukit Baiduri Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Carbofer General Trading SA - India
- Jorong Barutama Greston.PT - Indonesia
- Thiess Contractors Indonesia
- Siam City Cement - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Africa Commodities Group - South Africa
- Indian Oil Corporation Limited
- Straits Asia Resources Limited - Singapore
- Tata Chemicals Ltd - India
- Eastern Energy - Thailand
- Kideco Jaya Agung - Indonesia
- Makarim & Taira - Indonesia
- Edison Trading Spa - Italy
- Orica Mining Services - Indonesia
- Australian Coal Association
- Banpu Public Company Limited - Thailand
- Posco Energy - South Korea
- Australian Commodity Traders Exchange
- Lanco Infratech Ltd - India
- Mjunction Services Limited - India
- Sical Logistics Limited - India
- VISA Power Limited - India
- Indonesian Coal Mining Association
- Deloitte Consulting - India
- Bhoruka Overseas - Indonesia
- Kartika Selabumi Mining - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PTC India Limited - India
- GVK Power & Infra Limited - India
- Videocon Industries ltd - India
- Krishnapatnam Port Company Ltd. - India
- Manunggal Multi Energi - Indonesia
- Central Java Power - Indonesia
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Chamber of Mines of South Africa
- Cigading International Bulk Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- Meralco Power Generation, Philippines
- SMG Consultants - Indonesia
- Power Finance Corporation Ltd., India
- Cement Manufacturers Association - India
- Renaissance Capital - South Africa
- Global Business Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parliament of New Zealand
- Gujarat Electricity Regulatory Commission - India
- Aboitiz Power Corporation - Philippines
- Eastern Coal Council - USA
- Sakthi Sugars Limited - India
- Bulk Trading Sa - Switzerland
- Planning Commission, India
- Coalindo Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Globalindo Alam Lestari - Indonesia
- Ambuja Cements Ltd - India
- Medco Energi Mining Internasional
- Latin American Coal - Colombia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PetroVietnam Power Coal Import and Supply Company
- Energy Link Ltd, New Zealand
- Iligan Light & Power Inc, Philippines
- Mercuria Energy - Indonesia
- The State Trading Corporation of India Ltd
- Dalmia Cement Bharat India
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
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