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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$6,110 per day net respectively in the first quarter of 2015, representing a 45% reduction in average rates compared to the same period last year. Newbuilding deliveries deferred from 2014 into January and February coincided with the lunar new year holidays seasonal demand slowdown in China and seasonal export disruptions in key trade areas. Together, these pulled the Baltic Dry Index (BDI) to its lowest since indices began in 1985. However, spot market rates for Handysize and Handymax vessels have gradually improved since lunar new year, albeit from a very low base”, concluded Pacific Basin”.
Lazaridis concluded his analysis by noting that “all this put together allows for better prospects and in essence lower risk while providing comparatively similar asset play returns (in percentage terms) with that of the larger sizes. To close off, it is always worth noting that there is a bright side to every market slump as there is also a dark side to every market boom. Both need caution and proper estimating of the kind of risk/reward one engages with”.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 30 March 15
Q3' 15 CFR SOUTH CHINA COAL SWAP: DECLINED 8.7% M-M; 12.77% Y-TO-D
COALspot.com: API 8 CFR South China Coal swap for Q2’ 2015 delivery declined US$ 5.00 (-8.70%) per MT month over month and US$ 1.33 (-2 ...
Monday, 30 March 15
Q2' FOB NEWCASTLE COAL SWAP CLOSED 4.47% HIGHER THAN Q4' CLOSING PRICE
COALspot.com: API 5 FOB Newcastle Coal swap for Q2’ 2015 delivery declined US$ 5.42 per MT (-10.43%) month over month and US$ 1.60 (-3.32%) w ...
Sunday, 29 March 15
INDO - INDIA: SUPRAMAX & PANAMAX FREIGHT MARKET STEADY
COALspot.com: The freight market was almost stable as all segments slightly up except Panamax sector.
The BDI was up by just 0.85% week over w ...
Saturday, 28 March 15
IS NORTHERN EUROPE THE NEW MINING ELDORADO?
The Europe Mining 2015 Summit, organised by Global Summits organizer IRN on 17-18 June in Amsterdam, The Netherlands, will gather senior level repr ...
Saturday, 28 March 15
THE DRY BULK FLEET AT BREAKING POINT - CLARKSONS
The severe oversupply in the bulkcarrier fleet has contributed to the current trough in the dry bulk market, putting considerable financial pressur ...
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- Karbindo Abesyapradhi - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- Wood Mackenzie - Singapore
- Deloitte Consulting - India
- Bukit Baiduri Energy - Indonesia
- Indonesian Coal Mining Association
- Globalindo Alam Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- Therma Luzon, Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- Central Electricity Authority - India
- Economic Council, Georgia
- Miang Besar Coal Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- Kideco Jaya Agung - Indonesia
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
- Gujarat Sidhee Cement - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kalimantan Lumbung Energi - Indonesia
- Mintek Dendrill Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Tamil Nadu electricity Board
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- Formosa Plastics Group - Taiwan
- Iligan Light & Power Inc, Philippines
- Sarangani Energy Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- Meralco Power Generation, Philippines
- Indian Energy Exchange, India
- Kapuas Tunggal Persada - Indonesia
- Baramulti Group, Indonesia
- PNOC Exploration Corporation - Philippines
- Commonwealth Bank - Australia
- Edison Trading Spa - Italy
- Tata Chemicals Ltd - India
- Thai Mozambique Logistica
- Neyveli Lignite Corporation Ltd, - India
- GMR Energy Limited - India
- Eastern Energy - Thailand
- Goldman Sachs - Singapore
- Coal and Oil Company - UAE
- The State Trading Corporation of India Ltd
- Coastal Gujarat Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Mjunction Services Limited - India
- Toyota Tsusho Corporation, Japan
- Australian Commodity Traders Exchange
- Singapore Mercantile Exchange
- ICICI Bank Limited - India
- Billiton Holdings Pty Ltd - Australia
- Wilmar Investment Holdings
- Antam Resourcindo - Indonesia
- CNBM International Corporation - China
- Samtan Co., Ltd - South Korea
- PTC India Limited - India
- Sakthi Sugars Limited - India
- Aboitiz Power Corporation - Philippines
- GVK Power & Infra Limited - India
- Videocon Industries ltd - India
- Interocean Group of Companies - India
- TNB Fuel Sdn Bhd - Malaysia
- Thiess Contractors Indonesia
- Sojitz Corporation - Japan
- Dalmia Cement Bharat India
- IEA Clean Coal Centre - UK
- Aditya Birla Group - India
- Bukit Asam (Persero) Tbk - Indonesia
- Pendopo Energi Batubara - Indonesia
- Chettinad Cement Corporation Ltd - India
- Bhushan Steel Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Independent Power Producers Association of India
- The University of Queensland
- MS Steel International - UAE
- Kumho Petrochemical, South Korea
- Mercuria Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Indo Tambangraya Megah - Indonesia
- Salva Resources Pvt Ltd - India
- London Commodity Brokers - England
- White Energy Company Limited
- India Bulls Power Limited - India
- Sical Logistics Limited - India
- LBH Netherlands Bv - Netherlands
- Bayan Resources Tbk. - Indonesia
- San Jose City I Power Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Electricity Authority, New Zealand
- Binh Thuan Hamico - Vietnam
- Makarim & Taira - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Standard Chartered Bank - UAE
- Parliament of New Zealand
- Global Green Power PLC Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Malabar Cements Ltd - India
- Vizag Seaport Private Limited - India
- Riau Bara Harum - Indonesia
- Coalindo Energy - Indonesia
- Larsen & Toubro Limited - India
- Leighton Contractors Pty Ltd - Australia
- Metalloyd Limited - United Kingdom
- Semirara Mining and Power Corporation, Philippines
- Star Paper Mills Limited - India
- TeaM Sual Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Marubeni Corporation - India
- Eastern Coal Council - USA
- Electricity Generating Authority of Thailand
- Jindal Steel & Power Ltd - India
- Banpu Public Company Limited - Thailand
- Global Business Power Corporation, Philippines
- Indogreen Group - Indonesia
- Heidelberg Cement - Germany
- Bhatia International Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Planning Commission, India
- Orica Australia Pty. Ltd.
- Uttam Galva Steels Limited - India
- Orica Mining Services - Indonesia
- Bhoruka Overseas - Indonesia
- Indian Oil Corporation Limited
- Meenaskhi Energy Private Limited - India
- Power Finance Corporation Ltd., India
- SMG Consultants - Indonesia
- Carbofer General Trading SA - India
- Port Waratah Coal Services - Australia
- Mercator Lines Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Minerals Council of Australia
- Central Java Power - Indonesia
- Posco Energy - South Korea
- Kobexindo Tractors - Indoneisa
- Kaltim Prima Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Agrawal Coal Company - India
- Georgia Ports Authority, United States
- Latin American Coal - Colombia
- Australian Coal Association
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- GN Power Mariveles Coal Plant, Philippines
- Grasim Industreis Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Savvy Resources Ltd - HongKong
- Ambuja Cements Ltd - India
- Rio Tinto Coal - Australia
- Attock Cement Pakistan Limited
- Borneo Indobara - Indonesia
- Lanco Infratech Ltd - India
- Kepco SPC Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Bangladesh Power Developement Board
- Indika Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement PLC, Thailand
- Bukit Makmur.PT - Indonesia
- Bharathi Cement Corporation - India
- McConnell Dowell - Australia
- Timah Investasi Mineral - Indoneisa
- Semirara Mining Corp, Philippines
- Petron Corporation, Philippines
- Vedanta Resources Plc - India
- Merrill Lynch Commodities Europe
- Trasteel International SA, Italy
- Madhucon Powers Ltd - India
- Altura Mining Limited, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- SMC Global Power, Philippines
- Price Waterhouse Coopers - Russia
- Jaiprakash Power Ventures ltd
- Bahari Cakrawala Sebuku - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Romanian Commodities Exchange
- VISA Power Limited - India
- ASAPP Information Group - India
- PetroVietnam Power Coal Import and Supply Company
- SN Aboitiz Power Inc, Philippines
- Cement Manufacturers Association - India
- GAC Shipping (India) Pvt Ltd
- Gujarat Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- Africa Commodities Group - South Africa
- Essar Steel Hazira Ltd - India
- The Treasury - Australian Government
- Chamber of Mines of South Africa
- Rashtriya Ispat Nigam Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Oldendorff Carriers - Singapore
- Renaissance Capital - South Africa
- CIMB Investment Bank - Malaysia
- Anglo American - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Maheswari Brothers Coal Limited - India
- Energy Development Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Transport, Egypt
- Sree Jayajothi Cements Limited - India
- Medco Energi Mining Internasional
- Simpson Spence & Young - Indonesia
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