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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$6,110 per day net respectively in the first quarter of 2015, representing a 45% reduction in average rates compared to the same period last year. Newbuilding deliveries deferred from 2014 into January and February coincided with the lunar new year holidays seasonal demand slowdown in China and seasonal export disruptions in key trade areas. Together, these pulled the Baltic Dry Index (BDI) to its lowest since indices began in 1985. However, spot market rates for Handysize and Handymax vessels have gradually improved since lunar new year, albeit from a very low base”, concluded Pacific Basin”.
Lazaridis concluded his analysis by noting that “all this put together allows for better prospects and in essence lower risk while providing comparatively similar asset play returns (in percentage terms) with that of the larger sizes. To close off, it is always worth noting that there is a bright side to every market slump as there is also a dark side to every market boom. Both need caution and proper estimating of the kind of risk/reward one engages with”.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 16 March 15
API 5 FOB NEWCASTLE COAL SWAPS: DECLINED
COALspot.com: API 5 FOB Newcastle Coal swap for Q2’ 2015 delivery declined US$ 2.48 per MT (-4.77%) month over month and US$ 0.93 (-1.84%) we ...
Monday, 16 March 15
CFR SOUTH CHINA THERMAL COAL SWAP DECLINED 3.74% M-O-M
COALspot.com: API 8 CFR South China Coal swap for Q2’ 2015 delivery declined US$ 2.17 (-3.74%) per MT month over month and US$ 0.67 (-1 ...
Sunday, 15 March 15
BDI DECLINED LESSER THAN 1% WEEK OVER WEEK; INDO-INDIA FIRM
COALspot.com: The most of indices, including bulk dry index were falling this week. The BDI has been down by just 0.53 points and closing at 562 po ...
Saturday, 14 March 15
CAPESIZE DRY BULKERS TO AVERAGE BETWEEN $3,000 AND $9,000/DAY IN THE COMING WEEKS SAYS BIMCO
BIMCO issued its latest short-term estimates for the dry bulk market. For March/May: BIMCO assesses that the Capesize time charter (T/C) average ra ...
Friday, 13 March 15
U.S. COAL PRODUCTION UP 2.3% WEEK OVER WEEK
COALspot.com – United States the world's one of the largest coal producers, produced approximately 17.5 million short tons (mmst) of coal ...
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- The Treasury - Australian Government
- GVK Power & Infra Limited - India
- Miang Besar Coal Terminal - Indonesia
- SMC Global Power, Philippines
- Renaissance Capital - South Africa
- Africa Commodities Group - South Africa
- Latin American Coal - Colombia
- India Bulls Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Aboitiz Power Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- OPG Power Generation Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Trasteel International SA, Italy
- Kepco SPC Power Corporation, Philippines
- Marubeni Corporation - India
- Indian Oil Corporation Limited
- Sical Logistics Limited - India
- Central Java Power - Indonesia
- Bukit Baiduri Energy - Indonesia
- Parliament of New Zealand
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Straits Asia Resources Limited - Singapore
- Borneo Indobara - Indonesia
- Antam Resourcindo - Indonesia
- Australian Commodity Traders Exchange
- Anglo American - United Kingdom
- Uttam Galva Steels Limited - India
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Planning Commission, India
- Chettinad Cement Corporation Ltd - India
- Kideco Jaya Agung - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Indo Tambangraya Megah - Indonesia
- Kaltim Prima Coal - Indonesia
- Romanian Commodities Exchange
- Bulk Trading Sa - Switzerland
- Directorate Of Revenue Intelligence - India
- Billiton Holdings Pty Ltd - Australia
- Karaikal Port Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Semirara Mining Corp, Philippines
- LBH Netherlands Bv - Netherlands
- Energy Development Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Globalindo Alam Lestari - Indonesia
- Oldendorff Carriers - Singapore
- Bukit Makmur.PT - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Meenaskhi Energy Private Limited - India
- CNBM International Corporation - China
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Business Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Siam City Cement PLC, Thailand
- Salva Resources Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Riau Bara Harum - Indonesia
- Commonwealth Bank - Australia
- TeaM Sual Corporation - Philippines
- PowerSource Philippines DevCo
- Sindya Power Generating Company Private Ltd
- Indogreen Group - Indonesia
- Singapore Mercantile Exchange
- Edison Trading Spa - Italy
- Metalloyd Limited - United Kingdom
- Independent Power Producers Association of India
- Deloitte Consulting - India
- Kapuas Tunggal Persada - Indonesia
- Formosa Plastics Group - Taiwan
- Coalindo Energy - Indonesia
- Kumho Petrochemical, South Korea
- Malabar Cements Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhushan Steel Limited - India
- Indian Energy Exchange, India
- GAC Shipping (India) Pvt Ltd
- Central Electricity Authority - India
- London Commodity Brokers - England
- Goldman Sachs - Singapore
- Interocean Group of Companies - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
- Sarangani Energy Corporation, Philippines
- Gujarat Sidhee Cement - India
- Orica Mining Services - Indonesia
- Medco Energi Mining Internasional
- Sree Jayajothi Cements Limited - India
- Ind-Barath Power Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bangladesh Power Developement Board
- Chamber of Mines of South Africa
- Heidelberg Cement - Germany
- Wood Mackenzie - Singapore
- White Energy Company Limited
- Orica Australia Pty. Ltd.
- Jindal Steel & Power Ltd - India
- Eastern Coal Council - USA
- Jaiprakash Power Ventures ltd
- Port Waratah Coal Services - Australia
- Meralco Power Generation, Philippines
- Global Coal Blending Company Limited - Australia
- Rio Tinto Coal - Australia
- Electricity Generating Authority of Thailand
- Wilmar Investment Holdings
- Makarim & Taira - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Ambuja Cements Ltd - India
- Manunggal Multi Energi - Indonesia
- Indonesian Coal Mining Association
- Kalimantan Lumbung Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- Power Finance Corporation Ltd., India
- Star Paper Mills Limited - India
- Altura Mining Limited, Indonesia
- Grasim Industreis Ltd - India
- Standard Chartered Bank - UAE
- Eastern Energy - Thailand
- Mercuria Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- Dalmia Cement Bharat India
- VISA Power Limited - India
- Tata Chemicals Ltd - India
- Economic Council, Georgia
- MS Steel International - UAE
- Coal and Oil Company - UAE
- Coastal Gujarat Power Limited - India
- Price Waterhouse Coopers - Russia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Mineral Development Corp Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Baramulti Group, Indonesia
- Vedanta Resources Plc - India
- Georgia Ports Authority, United States
- PNOC Exploration Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Timah Investasi Mineral - Indoneisa
- IEA Clean Coal Centre - UK
- Toyota Tsusho Corporation, Japan
- Banpu Public Company Limited - Thailand
- ICICI Bank Limited - India
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- Videocon Industries ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Transport, Egypt
- Agrawal Coal Company - India
- Mjunction Services Limited - India
- AsiaOL BioFuels Corp., Philippines
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
- Attock Cement Pakistan Limited
- IHS Mccloskey Coal Group - USA
- SMG Consultants - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- McConnell Dowell - Australia
- The State Trading Corporation of India Ltd
- Carbofer General Trading SA - India
- Iligan Light & Power Inc, Philippines
- Sojitz Corporation - Japan
- Minerals Council of Australia
- Ministry of Finance - Indonesia
- Kobexindo Tractors - Indoneisa
- Energy Link Ltd, New Zealand
- GMR Energy Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Thiess Contractors Indonesia
- Larsen & Toubro Limited - India
- Siam City Cement - Thailand
- Gujarat Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- Aditya Birla Group - India
- Cement Manufacturers Association - India
- Semirara Mining and Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Bhoruka Overseas - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- ASAPP Information Group - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petron Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Vijayanagar Sugar Pvt Ltd - India
- Australian Coal Association
- Therma Luzon, Inc, Philippines
- New Zealand Coal & Carbon
- CIMB Investment Bank - Malaysia
- Madhucon Powers Ltd - India
- Ministry of Mines - Canada
- Lanco Infratech Ltd - India
- Vizag Seaport Private Limited - India
- Electricity Authority, New Zealand
- Bhatia International Limited - India
- Bharathi Cement Corporation - India
- Samtan Co., Ltd - South Korea
- Sakthi Sugars Limited - India
- Merrill Lynch Commodities Europe
- Thai Mozambique Logistica
- PetroVietnam Power Coal Import and Supply Company
- Indika Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- TNB Fuel Sdn Bhd - Malaysia
- Mercator Lines Limited - India
- Rashtriya Ispat Nigam Limited - India
- Mintek Dendrill Indonesia
- Simpson Spence & Young - Indonesia
- Essar Steel Hazira Ltd - India
- The University of Queensland
- Savvy Resources Ltd - HongKong
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