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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warned of a 20% fall in Chinese steel consumption over the next 15 years, as Beijing accelerates the shutdown of outdated and loss-making factories.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, 25 October 15
ANOTHER DISAPPOINTING WEEK FOR PANAMAX; INDEX FELL 5.4 PERCENT W-W
COALspot.com: The BDI was slightly up by 2.65 pct closing at 774 points mainly because of Cape index which was up by 10.85 pct closing at 1461 poin ...
Sunday, 25 October 15
DRY BULK SHIP OWNERS ARE LOOKING TO CHINA'S POLICIES FOR CUES ON FUTURE MARKET DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
China’s hard or softer landing is a thing which has troubled dry bulk shipping for a couple of years now, as owners have been hit by the coun ...
Friday, 23 October 15
WILL INDIAN DOMESTIC COAL PRICES BE ABLE TO COMPETE IMPORTED COAL PRICES IF THE CURRENT TREND CONTINUES?
COALspot.com: The Most of the Indian end-users are waiting for last minute purchase to enjoy every drop in price. Coal procurement managers are als ...
Friday, 23 October 15
COAL PRODUCTION IN THE U.S. FOR THE WEEK ENDING OCTOBER 17 DECLINED FOR THE SECOND STRAIGHT WEEK
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 16.6 million shor ...
Wednesday, 21 October 15
RUSSIA'S CARBO ONE COAL SALES TO HIT 50 MLN T/YR - JACQUELINE HOLMES
COALspot.com: Russia's Carbo One has become one of the world's leading physical coal traders with an annual volume approaching 50 million t ...
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- Eastern Coal Council - USA
- Malabar Cements Ltd - India
- Chamber of Mines of South Africa
- McConnell Dowell - Australia
- Jindal Steel & Power Ltd - India
- Semirara Mining Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Meralco Power Generation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Banpu Public Company Limited - Thailand
- Ministry of Transport, Egypt
- India Bulls Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- LBH Netherlands Bv - Netherlands
- Siam City Cement PLC, Thailand
- Planning Commission, India
- Alfred C Toepfer International GmbH - Germany
- Larsen & Toubro Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Ambuja Cements Ltd - India
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- VISA Power Limited - India
- TeaM Sual Corporation - Philippines
- Madhucon Powers Ltd - India
- Indian Oil Corporation Limited
- Wood Mackenzie - Singapore
- Energy Development Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- Edison Trading Spa - Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- ICICI Bank Limited - India
- SMG Consultants - Indonesia
- Australian Commodity Traders Exchange
- Makarim & Taira - Indonesia
- Georgia Ports Authority, United States
- Chettinad Cement Corporation Ltd - India
- Ministry of Finance - Indonesia
- Oldendorff Carriers - Singapore
- Parliament of New Zealand
- Standard Chartered Bank - UAE
- Rio Tinto Coal - Australia
- Parry Sugars Refinery, India
- Timah Investasi Mineral - Indoneisa
- Samtan Co., Ltd - South Korea
- Sree Jayajothi Cements Limited - India
- Kobexindo Tractors - Indoneisa
- Aditya Birla Group - India
- Neyveli Lignite Corporation Ltd, - India
- Sinarmas Energy and Mining - Indonesia
- Vizag Seaport Private Limited - India
- Altura Mining Limited, Indonesia
- Siam City Cement - Thailand
- SMC Global Power, Philippines
- Heidelberg Cement - Germany
- Kapuas Tunggal Persada - Indonesia
- Gujarat Sidhee Cement - India
- Therma Luzon, Inc, Philippines
- Antam Resourcindo - Indonesia
- PowerSource Philippines DevCo
- Asmin Koalindo Tuhup - Indonesia
- Coal and Oil Company - UAE
- Central Java Power - Indonesia
- Tata Chemicals Ltd - India
- Energy Link Ltd, New Zealand
- Bukit Baiduri Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Interocean Group of Companies - India
- Krishnapatnam Port Company Ltd. - India
- International Coal Ventures Pvt Ltd - India
- Orica Australia Pty. Ltd.
- GMR Energy Limited - India
- Trasteel International SA, Italy
- Agrawal Coal Company - India
- Electricity Generating Authority of Thailand
- Gujarat Mineral Development Corp Ltd - India
- Simpson Spence & Young - Indonesia
- Eastern Energy - Thailand
- Indogreen Group - Indonesia
- PNOC Exploration Corporation - Philippines
- Anglo American - United Kingdom
- Romanian Commodities Exchange
- Miang Besar Coal Terminal - Indonesia
- Singapore Mercantile Exchange
- Australian Coal Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Independent Power Producers Association of India
- London Commodity Brokers - England
- Savvy Resources Ltd - HongKong
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Manunggal Multi Energi - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Power Finance Corporation Ltd., India
- Salva Resources Pvt Ltd - India
- Bhatia International Limited - India
- Dalmia Cement Bharat India
- ASAPP Information Group - India
- Vedanta Resources Plc - India
- White Energy Company Limited
- Central Electricity Authority - India
- Star Paper Mills Limited - India
- Mercator Lines Limited - India
- Orica Mining Services - Indonesia
- Indonesian Coal Mining Association
- GAC Shipping (India) Pvt Ltd
- Sojitz Corporation - Japan
- Latin American Coal - Colombia
- Renaissance Capital - South Africa
- The Treasury - Australian Government
- Aboitiz Power Corporation - Philippines
- Ind-Barath Power Infra Limited - India
- Merrill Lynch Commodities Europe
- Barasentosa Lestari - Indonesia
- PTC India Limited - India
- Sakthi Sugars Limited - India
- IHS Mccloskey Coal Group - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- OPG Power Generation Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Thai Mozambique Logistica
- Attock Cement Pakistan Limited
- Port Waratah Coal Services - Australia
- Kepco SPC Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Meenaskhi Energy Private Limited - India
- Cigading International Bulk Terminal - Indonesia
- Deloitte Consulting - India
- CIMB Investment Bank - Malaysia
- Sical Logistics Limited - India
- Metalloyd Limited - United Kingdom
- Sindya Power Generating Company Private Ltd
- CNBM International Corporation - China
- Bukit Asam (Persero) Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Posco Energy - South Korea
- Pendopo Energi Batubara - Indonesia
- New Zealand Coal & Carbon
- Bangladesh Power Developement Board
- Holcim Trading Pte Ltd - Singapore
- Rashtriya Ispat Nigam Limited - India
- Global Coal Blending Company Limited - Australia
- Kartika Selabumi Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Goldman Sachs - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Coalindo Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- GVK Power & Infra Limited - India
- Commonwealth Bank - Australia
- Gujarat Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Petrochimia International Co. Ltd.- Taiwan
- Bayan Resources Tbk. - Indonesia
- Sarangani Energy Corporation, Philippines
- IEA Clean Coal Centre - UK
- Cement Manufacturers Association - India
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Ministry of Mines - Canada
- Billiton Holdings Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Karbindo Abesyapradhi - Indoneisa
- Globalindo Alam Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Directorate Of Revenue Intelligence - India
- Bulk Trading Sa - Switzerland
- Iligan Light & Power Inc, Philippines
- South Luzon Thermal Energy Corporation
- The University of Queensland
- Wilmar Investment Holdings
- Lanco Infratech Ltd - India
- Mjunction Services Limited - India
- Essar Steel Hazira Ltd - India
- MS Steel International - UAE
- Marubeni Corporation - India
- Thiess Contractors Indonesia
- Mercuria Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Electricity Authority, New Zealand
- AsiaOL BioFuels Corp., Philippines
- Bukit Makmur.PT - Indonesia
- Tamil Nadu electricity Board
- Minerals Council of Australia
- Economic Council, Georgia
- Mintek Dendrill Indonesia
- Xindia Steels Limited - India
- Price Waterhouse Coopers - Russia
- Petron Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Bahari Cakrawala Sebuku - Indonesia
- Bhushan Steel Limited - India
- Indian Energy Exchange, India
- Bharathi Cement Corporation - India
- Global Green Power PLC Corporation, Philippines
- Grasim Industreis Ltd - India
- Baramulti Group, Indonesia
- Kaltim Prima Coal - Indonesia
- Medco Energi Mining Internasional
- Offshore Bulk Terminal Pte Ltd, Singapore
- Straits Asia Resources Limited - Singapore
- Kumho Petrochemical, South Korea
- Maheswari Brothers Coal Limited - India
- SN Aboitiz Power Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Carbofer General Trading SA - India
- Coastal Gujarat Power Limited - India
- Riau Bara Harum - Indonesia
- Formosa Plastics Group - Taiwan
- Borneo Indobara - Indonesia
- Kideco Jaya Agung - Indonesia
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