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Sunday, 08 November 15
CAPESIZE FREIGHT RATES IN AUSTRALIA-CHINA ROUTES OVER 50% CHEAPER THAN BRAZIL-CHINA ROUTE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
 China’s mining and steel industries are facing tectonic shifts over the past couple of years, with the country’s limiting of coal use, falling steel demand both domestic and foreign and iron ore prices tumbling to near 7-year lows as of yesterday and well below $50/ton. As such, the persistence of mining giants to keep production levels up, is puzzling.
In its latest report, shipbroker Cotzias Intermodal Shipping attempted to decode this puzzle, which is very important to the future prospects of the dry bulk shipping industry. According to the report, “four companies dominate global iron ore production, namely; BHP Billiton, Vale, Rio Tinto, and Fortescue Metals Group. Together these companies control more than 70 percent of the seaborne iron ore market”. However, despite low iron ore prices, the two major producers in Brazil and Australia have been following through with their longstanding plans to increase production.
According to Cotzias Intermodal Shipping’s Christopher Thomas Whitty, Marketing Manager, Towage & Port Agency, “the low iron ore price also comes as China’s official forecaster warned of a 20% fall in Chinese steel consumption over the next 15 years, as Beijing accelerates the shutdown of outdated and loss-making factories. Rio Tinto in Australia and Vale in Brazil, are still ramping up production. For the first nine-months of 2015, Vale’s production overall is around 8 million metric tons higher than Rio Tinto’s at 248 million metric tons, while Vale’s shipments are just over 3 million metric tons higher. Of course Australian miners still have an advantage in delivered costs to China, the main importer for iron ore. For example, Capesizes hauling the commodity from Brazil to China last week saw rates around $12/ton for the Tubarao/Qingdao route, while from Rio Tinto’s Dampier terminal in Western Australian, freight rates were slightly in excess of $5.10/ton”.
Mr. Whitty added that “it is quite interesting to see that current iron ore prices aren’t worrying Rio Tinto. Their CEO, Andrew Harding, said he’s not losing sleep, because the business line, like the miner itself, is in for the long haul. He reasons that populations will continue to grow and develop, especially in Asia and iron ore will be needed to serve their needs. In September, Rio Tinto said its modelling showed that the world would need three billion tons of iron ore by 2030”.
Meanwhile, as per Intermodal’s analyst, “on the other side of the world, Vale is also quite confident in their iron ore division after releasing their third quarter results for 2015. Their highlight is the significant cost cutting during this period, which made Vale, the company with the lowest production cost/ton in the entire sector, reach an unprecedented cost level of $ 12.7/ton of iron ore. They are trailing faster growth compared to Australian majors, who this year posted stronger increases to volumes from new capacity ramp-ups”.
He added that “this is an oversupplied market that is obviously affected by the shrinking Chinese steel demand. On the other hand, oversupplied ore trade also creates opportunities for the large players, since it means that certain high-cost producers will struggle to survive. Some iron ore mines, such as those in Canada, China and Africa, have already buckled under the pressure. Nevertheless, producers with operating costs that are far below current iron ore prices are very well-positioned to take market share in the long term. Now if several high-cost producers exit the industry, it would be quite difficult for them to re-commence operations.
Over the long term, the low-cost iron mines could potentially fill the gap that remains after smaller companies exit the market. The gain in market share will likely increase margins, operating cash flow and profits. Hopefully this could also change the dynamics in the market and positively affect the demand for seaborne trade”, Whitty concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Sunday, 06 December 15
DRY BULK MARKET ON REVERSE MODE, SET TO BREAK NEW ALL-TIME LOWS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has been the negative “star” of the shipping industry for quite some time. In fact if it wasn’t for the boomi ...
Sunday, 06 December 15
DESPITE TEMPTING NEWBUILDING PRICES, CONTRACTING IN DRY BULK REMAINS LOW - BIMCO
The current newbuilding prices for dry bulk ships has dropped so much that they just passed the lows of 2012 heading downwards and are now at the l ...
Friday, 04 December 15
FOB INDONESIA COAL SWAPS ARE ALMOST FLAT OVER WEAK DEMAND
COALspot.com: Indonesian coal swaps for delivery Q1 2016 declined month on month and rose slightly week over week. Coal prices seen very margi ...
Friday, 04 December 15
COAL PRODUCTION IN THE U.S. FOR W/E NOVEMBER 28TH FELL SLIGHTLY FROM THE PREVIOUS WEEK
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 15.0 million shor ...
Friday, 04 December 15
MINING OUTLOOK WEAKENS FURTHER ON FALLING CHINESE DEMAND - FITCH
COALspot.com: Fitch Ratings' outlook for the global mining sector in 2016 is firmly negative, reflecting our view that Chinese demand will cont ...
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- Sarangani Energy Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Ind-Barath Power Infra Limited - India
- Dalmia Cement Bharat India
- Salva Resources Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Carbofer General Trading SA - India
- Samtan Co., Ltd - South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Electricity Generating Authority of Thailand
- PNOC Exploration Corporation - Philippines
- Indogreen Group - Indonesia
- SN Aboitiz Power Inc, Philippines
- Siam City Cement - Thailand
- Star Paper Mills Limited - India
- Deloitte Consulting - India
- Savvy Resources Ltd - HongKong
- GN Power Mariveles Coal Plant, Philippines
- Siam City Cement PLC, Thailand
- Edison Trading Spa - Italy
- Rashtriya Ispat Nigam Limited - India
- GAC Shipping (India) Pvt Ltd
- Chettinad Cement Corporation Ltd - India
- Rio Tinto Coal - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Indonesian Coal Mining Association
- Commonwealth Bank - Australia
- Aboitiz Power Corporation - Philippines
- Xindia Steels Limited - India
- Bangladesh Power Developement Board
- Trasteel International SA, Italy
- Sindya Power Generating Company Private Ltd
- Global Coal Blending Company Limited - Australia
- Mercator Lines Limited - India
- Binh Thuan Hamico - Vietnam
- Borneo Indobara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Goldman Sachs - Singapore
- Anglo American - United Kingdom
- Antam Resourcindo - Indonesia
- Ministry of Transport, Egypt
- Aditya Birla Group - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bayan Resources Tbk. - Indonesia
- TeaM Sual Corporation - Philippines
- Vizag Seaport Private Limited - India
- Orica Australia Pty. Ltd.
- Kaltim Prima Coal - Indonesia
- Power Finance Corporation Ltd., India
- Meenaskhi Energy Private Limited - India
- Sakthi Sugars Limited - India
- Videocon Industries ltd - India
- Grasim Industreis Ltd - India
- Energy Development Corp, Philippines
- Larsen & Toubro Limited - India
- White Energy Company Limited
- MS Steel International - UAE
- Kartika Selabumi Mining - Indonesia
- Mjunction Services Limited - India
- ICICI Bank Limited - India
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Makarim & Taira - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Central Java Power - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Ambuja Cements Ltd - India
- Orica Mining Services - Indonesia
- India Bulls Power Limited - India
- Kumho Petrochemical, South Korea
- Australian Commodity Traders Exchange
- Asmin Koalindo Tuhup - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indian Energy Exchange, India
- Straits Asia Resources Limited - Singapore
- Bhushan Steel Limited - India
- Medco Energi Mining Internasional
- Coal and Oil Company - UAE
- Sree Jayajothi Cements Limited - India
- Sinarmas Energy and Mining - Indonesia
- CNBM International Corporation - China
- Uttam Galva Steels Limited - India
- Economic Council, Georgia
- Neyveli Lignite Corporation Ltd, - India
- Africa Commodities Group - South Africa
- Wilmar Investment Holdings
- Globalindo Alam Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- GMR Energy Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Bukit Makmur.PT - Indonesia
- CIMB Investment Bank - Malaysia
- European Bulk Services B.V. - Netherlands
- Jaiprakash Power Ventures ltd
- Marubeni Corporation - India
- Miang Besar Coal Terminal - Indonesia
- Lanco Infratech Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Price Waterhouse Coopers - Russia
- PetroVietnam Power Coal Import and Supply Company
- IEA Clean Coal Centre - UK
- Semirara Mining Corp, Philippines
- Ministry of Mines - Canada
- New Zealand Coal & Carbon
- Agrawal Coal Company - India
- The State Trading Corporation of India Ltd
- San Jose City I Power Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Latin American Coal - Colombia
- Port Waratah Coal Services - Australia
- Renaissance Capital - South Africa
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Minerals Council of Australia
- Maheswari Brothers Coal Limited - India
- Madhucon Powers Ltd - India
- Cigading International Bulk Terminal - Indonesia
- IHS Mccloskey Coal Group - USA
- Indian Oil Corporation Limited
- Oldendorff Carriers - Singapore
- Interocean Group of Companies - India
- OPG Power Generation Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Parliament of New Zealand
- VISA Power Limited - India
- Central Electricity Authority - India
- Banpu Public Company Limited - Thailand
- Barasentosa Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Metalloyd Limited - United Kingdom
- Leighton Contractors Pty Ltd - Australia
- Posco Energy - South Korea
- Romanian Commodities Exchange
- Ceylon Electricity Board - Sri Lanka
- Jindal Steel & Power Ltd - India
- Tamil Nadu electricity Board
- Vijayanagar Sugar Pvt Ltd - India
- Standard Chartered Bank - UAE
- Therma Luzon, Inc, Philippines
- Tata Chemicals Ltd - India
- Manunggal Multi Energi - Indonesia
- GVK Power & Infra Limited - India
- Mercuria Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- TNB Fuel Sdn Bhd - Malaysia
- Independent Power Producers Association of India
- Formosa Plastics Group - Taiwan
- Essar Steel Hazira Ltd - India
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- Singapore Mercantile Exchange
- SMG Consultants - Indonesia
- South Luzon Thermal Energy Corporation
- Eastern Coal Council - USA
- Gujarat Mineral Development Corp Ltd - India
- Global Green Power PLC Corporation, Philippines
- Ministry of Finance - Indonesia
- Kobexindo Tractors - Indoneisa
- Bharathi Cement Corporation - India
- ASAPP Information Group - India
- Sojitz Corporation - Japan
- Electricity Authority, New Zealand
- Semirara Mining and Power Corporation, Philippines
- Australian Coal Association
- Indo Tambangraya Megah - Indonesia
- Cement Manufacturers Association - India
- Meralco Power Generation, Philippines
- Energy Link Ltd, New Zealand
- Directorate Of Revenue Intelligence - India
- PTC India Limited - India
- Pendopo Energi Batubara - Indonesia
- Indika Energy - Indonesia
- Heidelberg Cement - Germany
- Malabar Cements Ltd - India
- Baramulti Group, Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Eastern Energy - Thailand
- Chamber of Mines of South Africa
- Planning Commission, India
- Coastal Gujarat Power Limited - India
- Mintek Dendrill Indonesia
- The University of Queensland
- Karbindo Abesyapradhi - Indoneisa
- LBH Netherlands Bv - Netherlands
- Kapuas Tunggal Persada - Indonesia
- Intertek Mineral Services - Indonesia
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Gujarat Sidhee Cement - India
- Vedanta Resources Plc - India
- Attock Cement Pakistan Limited
- Merrill Lynch Commodities Europe
- Sical Logistics Limited - India
- Global Business Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petron Corporation, Philippines
- PowerSource Philippines DevCo
- Kohat Cement Company Ltd. - Pakistan
- Bukit Asam (Persero) Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Bhatia International Limited - India
- Bukit Baiduri Energy - Indonesia
- Riau Bara Harum - Indonesia
- The Treasury - Australian Government
- Georgia Ports Authority, United States
- Thai Mozambique Logistica
- Wood Mackenzie - Singapore
- Alfred C Toepfer International GmbH - Germany
- Bulk Trading Sa - Switzerland
- International Coal Ventures Pvt Ltd - India
- Thiess Contractors Indonesia
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