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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warned of a 20% fall in Chinese steel consumption over the next 15 years, as Beijing accelerates the shutdown of outdated and loss-making factories.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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Thursday, 03 December 15
DRY BULK: THERMAL COAL LOWER USAGE UNDER A POTENTIAL NEW CLIMATE DEAL WILL ADVERSELY IMPACT THE MARKET'S RECOVERY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
In direct contrast to the tanker market, the dry bulk one has seen demand for key commodities, such a coal, dwindling down over the course of the p ...
Thursday, 03 December 15
PANAMAX BUSINESS REMAINED UNDER PRESSURE LAST WEEK
COALspot.com: Following the new record lows the Dry Bulk market witnessed the week prior, the BDI took a much needed breath during the past days.
...
Wednesday, 02 December 15
Q3' 16 FOB RICHARDS BAY COAL SWAP SLIGHTLY UP FOR THE THIRD STRAIGHT WEEK
COALspot.com: API4 FOB Richards Bay Coal swap for delivery Q1’ 2016 up month over month and fell week over week.
The Q1’ 2016 &nbs ...
Wednesday, 02 December 15
MARKET INSIGHT - VASSILIS LOGOTHETIS
Boom and bust cycles in commodity prices are not something rare, yet they have important implications both for the world economy in general and for ...
Tuesday, 01 December 15
FOB NEWCASTLE COAL SWAP UP THIS PAST WEEK
COALspot.com: API 5 FOB Newcastle Coal swap for Q1’ 2016 delivery slid $3.75 per ton (9.26%) month over month to US$ 36.75 per ton. The swap ...
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- Coalindo Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- ASAPP Information Group - India
- Borneo Indobara - Indonesia
- Metalloyd Limited - United Kingdom
- PowerSource Philippines DevCo
- Maharashtra Electricity Regulatory Commission - India
- Jaiprakash Power Ventures ltd
- Parry Sugars Refinery, India
- Toyota Tsusho Corporation, Japan
- South Luzon Thermal Energy Corporation
- Uttam Galva Steels Limited - India
- Savvy Resources Ltd - HongKong
- Bangladesh Power Developement Board
- Ceylon Electricity Board - Sri Lanka
- Simpson Spence & Young - Indonesia
- Larsen & Toubro Limited - India
- Economic Council, Georgia
- Marubeni Corporation - India
- Bharathi Cement Corporation - India
- PNOC Exploration Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- New Zealand Coal & Carbon
- Tata Chemicals Ltd - India
- Mercator Lines Limited - India
- Central Java Power - Indonesia
- Mjunction Services Limited - India
- Posco Energy - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indonesian Coal Mining Association
- Heidelberg Cement - Germany
- The State Trading Corporation of India Ltd
- Jindal Steel & Power Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Sical Logistics Limited - India
- Manunggal Multi Energi - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Thiess Contractors Indonesia
- Eastern Coal Council - USA
- Petron Corporation, Philippines
- Xindia Steels Limited - India
- TeaM Sual Corporation - Philippines
- Bhushan Steel Limited - India
- Thai Mozambique Logistica
- PTC India Limited - India
- Orica Australia Pty. Ltd.
- Merrill Lynch Commodities Europe
- Rashtriya Ispat Nigam Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Central Electricity Authority - India
- Singapore Mercantile Exchange
- GN Power Mariveles Coal Plant, Philippines
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Formosa Plastics Group - Taiwan
- Electricity Authority, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Commonwealth Bank - Australia
- Attock Cement Pakistan Limited
- Mintek Dendrill Indonesia
- IEA Clean Coal Centre - UK
- Australian Coal Association
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- SN Aboitiz Power Inc, Philippines
- Gujarat Sidhee Cement - India
- Neyveli Lignite Corporation Ltd, - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Oldendorff Carriers - Singapore
- The University of Queensland
- Ambuja Cements Ltd - India
- GVK Power & Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Samtan Co., Ltd - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Power Finance Corporation Ltd., India
- Port Waratah Coal Services - Australia
- Alfred C Toepfer International GmbH - Germany
- Directorate Of Revenue Intelligence - India
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Bahari Cakrawala Sebuku - Indonesia
- Bhatia International Limited - India
- Kumho Petrochemical, South Korea
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- Essar Steel Hazira Ltd - India
- SMC Global Power, Philippines
- Standard Chartered Bank - UAE
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- Sojitz Corporation - Japan
- Price Waterhouse Coopers - Russia
- Planning Commission, India
- Aditya Birla Group - India
- Renaissance Capital - South Africa
- India Bulls Power Limited - India
- Parliament of New Zealand
- Therma Luzon, Inc, Philippines
- Wilmar Investment Holdings
- Riau Bara Harum - Indonesia
- Dalmia Cement Bharat India
- Sarangani Energy Corporation, Philippines
- Meralco Power Generation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- MS Steel International - UAE
- Wood Mackenzie - Singapore
- Pendopo Energi Batubara - Indonesia
- Anglo American - United Kingdom
- Straits Asia Resources Limited - Singapore
- White Energy Company Limited
- Agrawal Coal Company - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Semirara Mining Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Carbofer General Trading SA - India
- ICICI Bank Limited - India
- London Commodity Brokers - England
- VISA Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Minerals Council of Australia
- Siam City Cement - Thailand
- Banpu Public Company Limited - Thailand
- Vedanta Resources Plc - India
- Eastern Energy - Thailand
- Goldman Sachs - Singapore
- Grasim Industreis Ltd - India
- Antam Resourcindo - Indonesia
- Indian Energy Exchange, India
- Coastal Gujarat Power Limited - India
- Chamber of Mines of South Africa
- Binh Thuan Hamico - Vietnam
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Sree Jayajothi Cements Limited - India
- LBH Netherlands Bv - Netherlands
- Madhucon Powers Ltd - India
- Interocean Group of Companies - India
- Krishnapatnam Port Company Ltd. - India
- Pipit Mutiara Jaya. PT, Indonesia
- Romanian Commodities Exchange
- Miang Besar Coal Terminal - Indonesia
- The Treasury - Australian Government
- Global Business Power Corporation, Philippines
- Indika Energy - Indonesia
- Videocon Industries ltd - India
- Directorate General of MIneral and Coal - Indonesia
- San Jose City I Power Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Ind-Barath Power Infra Limited - India
- Tamil Nadu electricity Board
- Indian Oil Corporation Limited
- Semirara Mining and Power Corporation, Philippines
- Orica Mining Services - Indonesia
- Coal and Oil Company - UAE
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Altura Mining Limited, Indonesia
- CIMB Investment Bank - Malaysia
- Indo Tambangraya Megah - Indonesia
- Baramulti Group, Indonesia
- Kobexindo Tractors - Indoneisa
- Ministry of Mines - Canada
- Georgia Ports Authority, United States
- European Bulk Services B.V. - Netherlands
- GMR Energy Limited - India
- Billiton Holdings Pty Ltd - Australia
- McConnell Dowell - Australia
- Star Paper Mills Limited - India
- Deloitte Consulting - India
- Cement Manufacturers Association - India
- Africa Commodities Group - South Africa
- PetroVietnam Power Coal Import and Supply Company
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
- Latin American Coal - Colombia
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Bulk Trading Sa - Switzerland
- Vizag Seaport Private Limited - India
- Malabar Cements Ltd - India
- Indogreen Group - Indonesia
- Maheswari Brothers Coal Limited - India
- Karaikal Port Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Medco Energi Mining Internasional
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kaltim Prima Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Makarim & Taira - Indonesia
- Siam City Cement PLC, Thailand
- GAC Shipping (India) Pvt Ltd
- Sinarmas Energy and Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Chettinad Cement Corporation Ltd - India
- Sakthi Sugars Limited - India
- Iligan Light & Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Kideco Jaya Agung - Indonesia
- CNBM International Corporation - China
- Intertek Mineral Services - Indonesia
- Bukit Makmur.PT - Indonesia
- SMG Consultants - Indonesia
- Ministry of Transport, Egypt
- Aboitiz Power Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Trasteel International SA, Italy
- Kohat Cement Company Ltd. - Pakistan
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
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