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Friday, 28 August 15
DRY BULK SHIP OWNER OPTIMISTIC ABOUT FUTURE PROSPECTS OF THE MARKET: NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Dry bulk ship owner Golden Ocean appeared optimistic on the long term prospects of the dry bulk market, mainly thanks to an expected resolution of the oversupply problems of the market. The owner added in its second quarter report that the average spot rates so far in the third quarter are higher than the rates in the first half of 2015, which means that the company’s revenues are expected to improve compared to the two previous quarters. Golden Ocean noted that following two very weak quarters, the third quarter started with more optimism, in particular, for the Capesize segment. With a spot market close to $20,000 per day it was questionable whether it was a structurally damaged market balance due to oversupply. “Then a three step devaluation by the Chinese Central Bank and a very nervous Chinese stock market removed all signs of optimism over a fortnight. With falling commodity prices and growing uncertainty in general, activity among dry bulk charterers is low at present. Short term this could be painful for owners of dry bulk assets, but in a longer term perspective the supply side should repair itself faster than previously anticipated”, Golden Ocean said.
In any case, according to the shipowner, the dry bulk spot market in the second quarter of 2015 did not give owners of dry bulk vessels any relief. “Rates ended up more or less at similar levels as in the pervious quarter and with limited volatility. According to the Baltic Exchange, average earnings for the Supramax segment were $6,766 per day compared to $6,434 per day in the previous quarter and $8,982 per day in the same quarter last year. Capesize vessels were again facing the lowest earnings with an average of $4,600 per day against $4,582 per day the previous quarter and $11,901 per day in the same quarter last year. Panamaxes earned on average $5,183 per day compared to $4,815 during the first quarter and $6,304 in the same quarter in 2014″.
FLEET SUPPLY
According to Golden Ocean though, the low utilization of the dry bulk fleet the first six months of the year has been due to demand issues rather than increased supply. “Actual deliveries for the first six months amounted to 110 Handysize vessels, 159 Handymaxes/Supramaxes, 88 Panamaxes/Kamsarmaxes and 57 Capesize vessels. During the first half of 2015 less than 27 mdwt were delivered. Even though the delivery rate picked up slightly during the month of July it is unlikely that the delivery ratio will exceed 65 per cent of the official order book this year. At the same time scrapping prior the monsoon season in June/July was beating most analysts’ expectations. For the entire sector above 10,000dwt, 300 vessels have been scrapped. The net effect of this is that after seven months into the year there is still zero net fleet growth for Handysize and Capesize”, said Golden Ocean.
The ship owner added that “historically, limited number of vessels will be delivered during the fourth quarter and in spite of fewer removals due to a combination of improved spot market and lower scrap prices, net fleet growth in 2015 will most likely end up at less than 3 per cent of additional capacity. In aggregate the total order book to fleet ratio fell below 18 per cent at the end of the second quarter, which marks the lowest level since 2003. Still many analysts believe that the official order book is bigger than reality. The positive trend on the supply side is definitely needed due to softer demand for dry bulk commodities”.
DRY BULK DEMAND
In terms of demand, Golden Ocean said in its report that “we witnessed a slight improvement in total demand in the second quarter of the year compared to the previous slow quarter. Measured in tonne miles demand for dry bulk commodities grew by one per cent compared to first quarter, but still one per cent lower than same quarter last year. Uncertainty and conflicting information from the most important country for dry bulk transportation is still making the headlines. The devaluation of the renminbi by the Chinese Central Bank took many by surprise. It is not expected that this will have a significant impact on import levels. Compared to the average exchange rate in January this year, the currency is trading 4 per cent lower while the average spot price for iron ore is 15 per cent lower than the January average price. Chinese steel consumption (observed) was 4.3 per cent lower in the second quarter compared to the same quarter last year, but increased by 3.5 per cent compared to the previous quarter. Chinese iron ore imports for the first half the year ended at 453 million mt, followed by a strong 86 million mt in July. This is 15 per cent up from previous month and the highest monthly import figure seen in 2015. It is interesting to note that iron ore inventories remain at relatively low levels and almost 30 million mt lower than same time last year. Australia and Brazil continue taking market share from marginal producers and are up 30 million and 10 million tons, respectively, in the first seven months of 2015. New capacity from both countries is expected to be made available in the coming months represented by Roy Hill in Australia and new production from Vale. Coal imports to China continue to be the most negative contributor to dry bulk demand and are 34 per cent lower year-on-year for the first seven months of 2015. July showed a similar uptick in imports as for iron ore and for the last few weeks Chinas southwestern regions received less rain than usual. As a consequence hydro power production in July fell for the first time since October 2013. Given that China imports only six per cent of the coal it consumes, the sensitivity and uncertainty is substantial. Limited new hydro power capacity will be introduced over the next five years. India’s growth in coal imports is steady, but at a slower pace last two months. In the first half of 2015, the country imported 120 million mt which is almost 30 million mt more than the same period previous year”, Golden Ocean noted.
Ship prices
The soft freight market continued to put downward pressure on asset values for all vessel classes during the second quarter. According to industry sources, prices fell by 7.5 percent to 12.5 percent depending on the country of construction. Asset prices have reacted positively so far in third quarter to the improved spot market freight environment and most analysts are of the opinion that the industry has seen the bottom in this cycle”, the shipowner concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Friday, 11 September 15
SHIPPING MARKETS SHOW MIXED EMOTIONS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has managed to show marginal improvements over the past few days, with the Capesize segment faring better than smaller dry bulk ...
Friday, 11 September 15
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COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 18.6 million shor ...
Thursday, 10 September 15
U.S. H1' 15 STEAM COAL EXPORTS FELL BY 21 PER CENT Y-Y: EIA
Coal Trade
Slower growth in world coal demand, lower international coal prices, and higher coal output in other coal-exporting countries have all ...
Thursday, 10 September 15
INDONESIAN COAL BENCHMARK PRICE HITS A NEW LOW OF $58.21 PER TON
COALspot.com - The Director General of Mineral and Coal of Indonesia once a again revised down Indonesian coal benchmark price to US$ 58.21 per MT ...
Thursday, 10 September 15
IF NOT NOW, WHEN? - GIANNIS ANDRITSOPOULOS
Our industry is well known to be cyclical with some cycles lasting longer than others. Despite the fact that these shifts in the behavior of the fr ...
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Showing 2821 to 2825 news of total 6871 |
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- Siam City Cement - Thailand
- Bukit Baiduri Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Xindia Steels Limited - India
- Bukit Makmur.PT - Indonesia
- Singapore Mercantile Exchange
- Deloitte Consulting - India
- Medco Energi Mining Internasional
- Kartika Selabumi Mining - Indonesia
- Sree Jayajothi Cements Limited - India
- The State Trading Corporation of India Ltd
- Barasentosa Lestari - Indonesia
- Simpson Spence & Young - Indonesia
- Port Waratah Coal Services - Australia
- India Bulls Power Limited - India
- Madhucon Powers Ltd - India
- Cement Manufacturers Association - India
- Aboitiz Power Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Grasim Industreis Ltd - India
- Intertek Mineral Services - Indonesia
- Carbofer General Trading SA - India
- Marubeni Corporation - India
- Formosa Plastics Group - Taiwan
- Krishnapatnam Port Company Ltd. - India
- Petron Corporation, Philippines
- White Energy Company Limited
- Global Business Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Sindya Power Generating Company Private Ltd
- Ind-Barath Power Infra Limited - India
- SMC Global Power, Philippines
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Pipit Mutiara Jaya. PT, Indonesia
- Thiess Contractors Indonesia
- Mjunction Services Limited - India
- Globalindo Alam Lestari - Indonesia
- Eastern Coal Council - USA
- Bukit Asam (Persero) Tbk - Indonesia
- Electricity Generating Authority of Thailand
- Parliament of New Zealand
- Kaltim Prima Coal - Indonesia
- Independent Power Producers Association of India
- Indian Oil Corporation Limited
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- Power Finance Corporation Ltd., India
- LBH Netherlands Bv - Netherlands
- Bangladesh Power Developement Board
- Sical Logistics Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- Billiton Holdings Pty Ltd - Australia
- Videocon Industries ltd - India
- CNBM International Corporation - China
- Semirara Mining and Power Corporation, Philippines
- New Zealand Coal & Carbon
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Agrawal Coal Company - India
- The University of Queensland
- GMR Energy Limited - India
- McConnell Dowell - Australia
- South Luzon Thermal Energy Corporation
- Romanian Commodities Exchange
- Orica Australia Pty. Ltd.
- Bank of Tokyo Mitsubishi UFJ Ltd
- Aditya Birla Group - India
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Meenaskhi Energy Private Limited - India
- Sarangani Energy Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- Directorate Of Revenue Intelligence - India
- Bhatia International Limited - India
- Dalmia Cement Bharat India
- Ambuja Cements Ltd - India
- Jindal Steel & Power Ltd - India
- ASAPP Information Group - India
- Renaissance Capital - South Africa
- Indogreen Group - Indonesia
- Samtan Co., Ltd - South Korea
- Semirara Mining Corp, Philippines
- Minerals Council of Australia
- Global Green Power PLC Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Vizag Seaport Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- TNB Fuel Sdn Bhd - Malaysia
- Altura Mining Limited, Indonesia
- Star Paper Mills Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Trasteel International SA, Italy
- International Coal Ventures Pvt Ltd - India
- Central Java Power - Indonesia
- Vedanta Resources Plc - India
- Edison Trading Spa - Italy
- Baramulti Group, Indonesia
- PTC India Limited - India
- Kepco SPC Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Bharathi Cement Corporation - India
- Savvy Resources Ltd - HongKong
- Siam City Cement PLC, Thailand
- London Commodity Brokers - England
- PowerSource Philippines DevCo
- Bahari Cakrawala Sebuku - Indonesia
- Borneo Indobara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Essar Steel Hazira Ltd - India
- Sakthi Sugars Limited - India
- Makarim & Taira - Indonesia
- Eastern Energy - Thailand
- Latin American Coal - Colombia
- IEA Clean Coal Centre - UK
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- Mercator Lines Limited - India
- CIMB Investment Bank - Malaysia
- Ministry of Mines - Canada
- SMG Consultants - Indonesia
- Ministry of Finance - Indonesia
- Bulk Trading Sa - Switzerland
- Bhushan Steel Limited - India
- ICICI Bank Limited - India
- Ceylon Electricity Board - Sri Lanka
- Offshore Bulk Terminal Pte Ltd, Singapore
- Africa Commodities Group - South Africa
- Jaiprakash Power Ventures ltd
- Chamber of Mines of South Africa
- PNOC Exploration Corporation - Philippines
- Alfred C Toepfer International GmbH - Germany
- Petrochimia International Co. Ltd.- Taiwan
- Kalimantan Lumbung Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Interocean Group of Companies - India
- Parry Sugars Refinery, India
- Straits Asia Resources Limited - Singapore
- Economic Council, Georgia
- Lanco Infratech Ltd - India
- Uttam Galva Steels Limited - India
- TeaM Sual Corporation - Philippines
- Thai Mozambique Logistica
- Mintek Dendrill Indonesia
- Oldendorff Carriers - Singapore
- Australian Coal Association
- Antam Resourcindo - Indonesia
- MS Steel International - UAE
- Indo Tambangraya Megah - Indonesia
- Planning Commission, India
- Attock Cement Pakistan Limited
- Tamil Nadu electricity Board
- Energy Link Ltd, New Zealand
- Central Electricity Authority - India
- SN Aboitiz Power Inc, Philippines
- Metalloyd Limited - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- Coastal Gujarat Power Limited - India
- Heidelberg Cement - Germany
- Indika Energy - Indonesia
- Anglo American - United Kingdom
- Gujarat Sidhee Cement - India
- Wood Mackenzie - Singapore
- Georgia Ports Authority, United States
- IHS Mccloskey Coal Group - USA
- VISA Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- Manunggal Multi Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Malabar Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Kumho Petrochemical, South Korea
- Larsen & Toubro Limited - India
- Standard Chartered Bank - UAE
- Riau Bara Harum - Indonesia
- Indonesian Coal Mining Association
- Binh Thuan Hamico - Vietnam
- Kideco Jaya Agung - Indonesia
- Salva Resources Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Posco Energy - South Korea
- The Treasury - Australian Government
- Orica Mining Services - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GVK Power & Infra Limited - India
- GAC Shipping (India) Pvt Ltd
- Wilmar Investment Holdings
- Energy Development Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Chettinad Cement Corporation Ltd - India
- Mercuria Energy - Indonesia
- Sojitz Corporation - Japan
- Banpu Public Company Limited - Thailand
- Australian Commodity Traders Exchange
- Meralco Power Generation, Philippines
- Indian Energy Exchange, India
- Sinarmas Energy and Mining - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Goldman Sachs - Singapore
- Toyota Tsusho Corporation, Japan
- Neyveli Lignite Corporation Ltd, - India
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