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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, 27 March 15
INDONESIA: NEW REGULATION REQUIRES LETTER OF CREDIT FOR EXPORT OF PRODUCTS FROM NATURAL RESOURCES
The Minister of Trade issued Ministerial Regulation No. 04/M-DAG/PER/1/2015 (“Regulation No. 4/2015”) on 5 January 2015. Regulati ...
Friday, 27 March 15
WEEKLY U.S COAL OUTPUT FALLS 1.7% W-W; 7.9% Y-Y
COALspot.com – United States the world's one of the largest coal producers, produced approximately totaled an estimated 18.2 million ...
Thursday, 26 March 15
CHINA IRON ORE IMPORT FOR THE FIRST 2 MONTHS DECLINED BY 1.2 % Y-O-Y; PANAMAX AUSSIE/CHINA ROUNDS BEING FIXED IN THE $4 -5K RANGE - FEARNLEYS
Handy
There has been more activity in both hemispheres this week. Especially the USG market has picked up with more cargoes for prompter dates en ...
Thursday, 26 March 15
RATES FOR THE SMALLER SIZE SEGMENT CONTINUED TO IMPROVE LAST WEEK - INTERMODAL
To see green across the board is a rare occurrence in the Dry Bulk market nowadays and while the upside in which last week closed off is not of the ...
Thursday, 26 March 15
KYUSHU ELECTRIC POWER OF JAPAN HAS JOINED GLOBALCOAL ONLINE COAL TRADING PLATFORM
globalCOAL® announced today that Kyushu Electric Power, one of Japan’s largest utility companies, has joined its online coal trading plat ...
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- Coastal Gujarat Power Limited - India
- London Commodity Brokers - England
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- Price Waterhouse Coopers - Russia
- Chettinad Cement Corporation Ltd - India
- LBH Netherlands Bv - Netherlands
- Alfred C Toepfer International GmbH - Germany
- The Treasury - Australian Government
- Therma Luzon, Inc, Philippines
- MS Steel International - UAE
- The State Trading Corporation of India Ltd
- Sinarmas Energy and Mining - Indonesia
- Kaltim Prima Coal - Indonesia
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- Chamber of Mines of South Africa
- McConnell Dowell - Australia
- Kumho Petrochemical, South Korea
- Borneo Indobara - Indonesia
- Riau Bara Harum - Indonesia
- Salva Resources Pvt Ltd - India
- Sakthi Sugars Limited - India
- Port Waratah Coal Services - Australia
- Formosa Plastics Group - Taiwan
- Carbofer General Trading SA - India
- Orica Mining Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Indogreen Group - Indonesia
- PowerSource Philippines DevCo
- Globalindo Alam Lestari - Indonesia
- Central Java Power - Indonesia
- Edison Trading Spa - Italy
- IHS Mccloskey Coal Group - USA
- Kepco SPC Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Rio Tinto Coal - Australia
- Singapore Mercantile Exchange
- Coalindo Energy - Indonesia
- ASAPP Information Group - India
- Sree Jayajothi Cements Limited - India
- Vizag Seaport Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Power Finance Corporation Ltd., India
- Vijayanagar Sugar Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Coal and Oil Company - UAE
- Siam City Cement PLC, Thailand
- Petrochimia International Co. Ltd.- Taiwan
- IEA Clean Coal Centre - UK
- Xindia Steels Limited - India
- Trasteel International SA, Italy
- International Coal Ventures Pvt Ltd - India
- Planning Commission, India
- Eastern Coal Council - USA
- CNBM International Corporation - China
- Savvy Resources Ltd - HongKong
- Malabar Cements Ltd - India
- New Zealand Coal & Carbon
- Bukit Baiduri Energy - Indonesia
- Antam Resourcindo - Indonesia
- Parry Sugars Refinery, India
- Africa Commodities Group - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Wood Mackenzie - Singapore
- Energy Development Corp, Philippines
- Attock Cement Pakistan Limited
- Kideco Jaya Agung - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Australian Coal Association
- Goldman Sachs - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Maharashtra Electricity Regulatory Commission - India
- Straits Asia Resources Limited - Singapore
- Wilmar Investment Holdings
- ICICI Bank Limited - India
- Merrill Lynch Commodities Europe
- Central Electricity Authority - India
- Ind-Barath Power Infra Limited - India
- Oldendorff Carriers - Singapore
- Ambuja Cements Ltd - India
- Samtan Co., Ltd - South Korea
- Gujarat Sidhee Cement - India
- Iligan Light & Power Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Thai Mozambique Logistica
- Mercator Lines Limited - India
- Karaikal Port Pvt Ltd - India
- Larsen & Toubro Limited - India
- White Energy Company Limited
- TNB Fuel Sdn Bhd - Malaysia
- San Jose City I Power Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Tata Chemicals Ltd - India
- Electricity Authority, New Zealand
- Mintek Dendrill Indonesia
- Rashtriya Ispat Nigam Limited - India
- Medco Energi Mining Internasional
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Romanian Commodities Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- GMR Energy Limited - India
- Independent Power Producers Association of India
- Bhatia International Limited - India
- Indian Oil Corporation Limited
- Bhushan Steel Limited - India
- Bangladesh Power Developement Board
- SMC Global Power, Philippines
- Georgia Ports Authority, United States
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Star Paper Mills Limited - India
- OPG Power Generation Pvt Ltd - India
- India Bulls Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- The University of Queensland
- Mjunction Services Limited - India
- Essar Steel Hazira Ltd - India
- Banpu Public Company Limited - Thailand
- Meralco Power Generation, Philippines
- Madhucon Powers Ltd - India
- Bhoruka Overseas - Indonesia
- Electricity Generating Authority of Thailand
- Directorate Of Revenue Intelligence - India
- Latin American Coal - Colombia
- Sindya Power Generating Company Private Ltd
- Parliament of New Zealand
- Cement Manufacturers Association - India
- Aditya Birla Group - India
- Kartika Selabumi Mining - Indonesia
- Sarangani Energy Corporation, Philippines
- Agrawal Coal Company - India
- Meenaskhi Energy Private Limited - India
- Indonesian Coal Mining Association
- Ceylon Electricity Board - Sri Lanka
- SMG Consultants - Indonesia
- Vedanta Resources Plc - India
- Marubeni Corporation - India
- Kohat Cement Company Ltd. - Pakistan
- PTC India Limited - India
- Global Coal Blending Company Limited - Australia
- Sojitz Corporation - Japan
- Kapuas Tunggal Persada - Indonesia
- AsiaOL BioFuels Corp., Philippines
- GAC Shipping (India) Pvt Ltd
- Bharathi Cement Corporation - India
- Grasim Industreis Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kobexindo Tractors - Indoneisa
- Miang Besar Coal Terminal - Indonesia
- Renaissance Capital - South Africa
- Makarim & Taira - Indonesia
- Mercuria Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Petron Corporation, Philippines
- Australian Commodity Traders Exchange
- Timah Investasi Mineral - Indoneisa
- Energy Link Ltd, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Posco Energy - South Korea
- Thiess Contractors Indonesia
- Minerals Council of Australia
- Bahari Cakrawala Sebuku - Indonesia
- GVK Power & Infra Limited - India
- Baramulti Group, Indonesia
- Eastern Energy - Thailand
- Global Green Power PLC Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Deloitte Consulting - India
- Lanco Infratech Ltd - India
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- TeaM Sual Corporation - Philippines
- VISA Power Limited - India
- Binh Thuan Hamico - Vietnam
- Orica Australia Pty. Ltd.
- Ministry of Transport, Egypt
- Uttam Galva Steels Limited - India
- Maheswari Brothers Coal Limited - India
- Tamil Nadu electricity Board
- South Luzon Thermal Energy Corporation
- Barasentosa Lestari - Indonesia
- Indian Energy Exchange, India
- GN Power Mariveles Coal Plant, Philippines
- Altura Mining Limited, Indonesia
- Bukit Makmur.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Toyota Tsusho Corporation, Japan
- Dalmia Cement Bharat India
- Anglo American - United Kingdom
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Economic Council, Georgia
- Metalloyd Limited - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- Interocean Group of Companies - India
- Sical Logistics Limited - India
- Jaiprakash Power Ventures ltd
- Jindal Steel & Power Ltd - India
- Commonwealth Bank - Australia
- Videocon Industries ltd - India
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