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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warned of a 20% fall in Chinese steel consumption over the next 15 years, as Beijing accelerates the shutdown of outdated and loss-making factories.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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Wednesday, 25 November 15
INDIA'S POWER GENERATORS FACE LOW, FALLING UTILISATION RATE - FITCH
COAlspot.com: Fitch Ratings says in a new report that the utilisation rate of India's thermal power generation capacity continued to decline in ...
Wednesday, 25 November 15
BIG CHINESE COPPER PROCESSORS DEFEND MARGINS THROUGH R&D, SAYS FITCH
Large Chinese copper processors are focusing on higher value-added products and investing in R&D to enhance their technical know-how to maintai ...
Wednesday, 25 November 15
BIMCO LAUNCHES ANTI-CORRUPTION CLAUSE FOR SHIPPING CONTRACTS WORLDWIDE
COALspot.com: BIMCO, is the world’s largest international shipping association, with 2,200 members in around 130 countries, has now launched ...
Wednesday, 25 November 15
TANKER MARKET INSIGHT - GEORGE VASTARDIS
We have already noticed obvious signs of activity mainly West of Suez, which are currently driving the clean MR market to higher levels. Over the p ...
Tuesday, 24 November 15
COAL SUPPLY PRESSURE PUTS INDONESIAN HBA IN FREE FALL
The coal industry is slowly recognizing that, the current coal price level is not a decrease in price, but a change in pricing to corresp ...
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- Trasteel International SA, Italy
- Madhucon Powers Ltd - India
- Price Waterhouse Coopers - Russia
- Goldman Sachs - Singapore
- Xindia Steels Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Toyota Tsusho Corporation, Japan
- Meenaskhi Energy Private Limited - India
- Antam Resourcindo - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Iligan Light & Power Inc, Philippines
- Savvy Resources Ltd - HongKong
- Cement Manufacturers Association - India
- PTC India Limited - India
- GAC Shipping (India) Pvt Ltd
- Sakthi Sugars Limited - India
- Edison Trading Spa - Italy
- International Coal Ventures Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Ambuja Cements Ltd - India
- GVK Power & Infra Limited - India
- PowerSource Philippines DevCo
- Semirara Mining Corp, Philippines
- IEA Clean Coal Centre - UK
- London Commodity Brokers - England
- European Bulk Services B.V. - Netherlands
- Riau Bara Harum - Indonesia
- Global Business Power Corporation, Philippines
- Aditya Birla Group - India
- Bhoruka Overseas - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Kumho Petrochemical, South Korea
- Energy Link Ltd, New Zealand
- Bukit Baiduri Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- ICICI Bank Limited - India
- Sojitz Corporation - Japan
- Kobexindo Tractors - Indoneisa
- Tamil Nadu electricity Board
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Kideco Jaya Agung - Indonesia
- Simpson Spence & Young - Indonesia
- GMR Energy Limited - India
- IHS Mccloskey Coal Group - USA
- Gujarat Electricity Regulatory Commission - India
- Power Finance Corporation Ltd., India
- Neyveli Lignite Corporation Ltd, - India
- Parliament of New Zealand
- Georgia Ports Authority, United States
- Altura Mining Limited, Indonesia
- Electricity Generating Authority of Thailand
- Merrill Lynch Commodities Europe
- Marubeni Corporation - India
- Meralco Power Generation, Philippines
- Mercator Lines Limited - India
- Salva Resources Pvt Ltd - India
- Central Electricity Authority - India
- Eastern Energy - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Binh Thuan Hamico - Vietnam
- San Jose City I Power Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Gujarat Sidhee Cement - India
- Malabar Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- Coal and Oil Company - UAE
- Thiess Contractors Indonesia
- Independent Power Producers Association of India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Orica Mining Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Karbindo Abesyapradhi - Indoneisa
- Indika Energy - Indonesia
- Jaiprakash Power Ventures ltd
- Intertek Mineral Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- Orica Australia Pty. Ltd.
- Maharashtra Electricity Regulatory Commission - India
- South Luzon Thermal Energy Corporation
- Banpu Public Company Limited - Thailand
- Posco Energy - South Korea
- Ministry of Mines - Canada
- Thai Mozambique Logistica
- SMG Consultants - Indonesia
- Petron Corporation, Philippines
- Economic Council, Georgia
- Indonesian Coal Mining Association
- New Zealand Coal & Carbon
- TeaM Sual Corporation - Philippines
- Bharathi Cement Corporation - India
- ASAPP Information Group - India
- Bahari Cakrawala Sebuku - Indonesia
- CNBM International Corporation - China
- Bhushan Steel Limited - India
- Agrawal Coal Company - India
- Larsen & Toubro Limited - India
- Karaikal Port Pvt Ltd - India
- Mjunction Services Limited - India
- Vedanta Resources Plc - India
- Indogreen Group - Indonesia
- LBH Netherlands Bv - Netherlands
- Eastern Coal Council - USA
- Renaissance Capital - South Africa
- Bulk Trading Sa - Switzerland
- Electricity Authority, New Zealand
- Uttam Galva Steels Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Kartika Selabumi Mining - Indonesia
- Manunggal Multi Energi - Indonesia
- Straits Asia Resources Limited - Singapore
- Bhatia International Limited - India
- Global Green Power PLC Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Borneo Indobara - Indonesia
- Wood Mackenzie - Singapore
- Heidelberg Cement - Germany
- Wilmar Investment Holdings
- Asmin Koalindo Tuhup - Indonesia
- OPG Power Generation Pvt Ltd - India
- Rio Tinto Coal - Australia
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement PLC, Thailand
- Mintek Dendrill Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Sindya Power Generating Company Private Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- Central Java Power - Indonesia
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Medco Energi Mining Internasional
- SMC Global Power, Philippines
- Kapuas Tunggal Persada - Indonesia
- Latin American Coal - Colombia
- Romanian Commodities Exchange
- Interocean Group of Companies - India
- Sical Logistics Limited - India
- Carbofer General Trading SA - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- The Treasury - Australian Government
- Barasentosa Lestari - Indonesia
- Dalmia Cement Bharat India
- Mercuria Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Krishnapatnam Port Company Ltd. - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- VISA Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Port Waratah Coal Services - Australia
- India Bulls Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Metalloyd Limited - United Kingdom
- Ind-Barath Power Infra Limited - India
- Attock Cement Pakistan Limited
- Kohat Cement Company Ltd. - Pakistan
- Jorong Barutama Greston.PT - Indonesia
- Tata Chemicals Ltd - India
- The University of Queensland
- Coastal Gujarat Power Limited - India
- Aboitiz Power Corporation - Philippines
- Oldendorff Carriers - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- MS Steel International - UAE
- SN Aboitiz Power Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Coalindo Energy - Indonesia
- Minerals Council of Australia
- PNOC Exploration Corporation - Philippines
- Baramulti Group, Indonesia
- Indian Oil Corporation Limited
- Deloitte Consulting - India
- Videocon Industries ltd - India
- Ministry of Transport, Egypt
- Sarangani Energy Corporation, Philippines
- Anglo American - United Kingdom
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Energy Development Corp, Philippines
- Formosa Plastics Group - Taiwan
- Globalindo Alam Lestari - Indonesia
- Bangladesh Power Developement Board
- Maheswari Brothers Coal Limited - India
- CIMB Investment Bank - Malaysia
- Chamber of Mines of South Africa
- Star Paper Mills Limited - India
- Kaltim Prima Coal - Indonesia
- Samtan Co., Ltd - South Korea
- GN Power Mariveles Coal Plant, Philippines
- Grasim Industreis Ltd - India
- White Energy Company Limited
- Rashtriya Ispat Nigam Limited - India
- Australian Coal Association
- Sree Jayajothi Cements Limited - India
- Leighton Contractors Pty Ltd - Australia
- Australian Commodity Traders Exchange
- Standard Chartered Bank - UAE
- Timah Investasi Mineral - Indoneisa
- Kepco SPC Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Siam City Cement - Thailand
- Vizag Seaport Private Limited - India
- Bayan Resources Tbk. - Indonesia
- McConnell Dowell - Australia
- Planning Commission, India
- Makarim & Taira - Indonesia
- Parry Sugars Refinery, India
- Africa Commodities Group - South Africa
- Sinarmas Energy and Mining - Indonesia
- Therma Luzon, Inc, Philippines
- Singapore Mercantile Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
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