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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warned of a 20% fall in Chinese steel consumption over the next 15 years, as Beijing accelerates the shutdown of outdated and loss-making factories.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, 21 October 15
MARKET INSIGHT - TIMOS PAPADIMITRIOU
In today’s dry bulk market, both freight rates and asset prices are creating mixed feelings to seasoned ship owners, who tend to instinctivel ...
Wednesday, 21 October 15
INDONESIAN COAL MINER BUKIT ASAM POSTS POSITIVE PERFORMANCE DURING FIRST THREE QUARTERS OF 2015
COALspot.com: Indonesian publicly listed and state controlled coal miner PT. Bukit Asam has announced that, the company’s coal sales up 8 per ...
Wednesday, 21 October 15
LOWER DEMAND HIT Q1' 16 INDONESIA COAL SWAPS
COALspot.com: Indonesian coal swap for delivery Q4 2015 declined month on month and week over week.
The Q4 swap declined $ 1.88 (-4.71%) per t ...
Tuesday, 20 October 15
SHIPBROKER SEES CAPESIZE RATES EASILY REACHING $25,000/DAY BY YEAR-END : NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The future course of the dry bulk market has been troubling market participants for quite some time now, as the “elusive” freight rate ...
Tuesday, 20 October 15
FOB RICHARDS BAY COAL SWAPS SINK INTO RED THIS PAST WEEK
COALspot.com: API4 FOB Richards Bay Coal swap for delivery Q4' 2015 declined week over week and month over month.
The Q4 swap was down US$ ...
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- The University of Queensland
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- Sarangani Energy Corporation, Philippines
- Ministry of Transport, Egypt
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- Port Waratah Coal Services - Australia
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- Agrawal Coal Company - India
- Ambuja Cements Ltd - India
- Timah Investasi Mineral - Indoneisa
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- Carbofer General Trading SA - India
- Bulk Trading Sa - Switzerland
- Kaltim Prima Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- International Coal Ventures Pvt Ltd - India
- Energy Development Corp, Philippines
- Australian Commodity Traders Exchange
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- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
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- Ministry of Finance - Indonesia
- Kepco SPC Power Corporation, Philippines
- Singapore Mercantile Exchange
- Riau Bara Harum - Indonesia
- Bharathi Cement Corporation - India
- Indika Energy - Indonesia
- Makarim & Taira - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The Treasury - Australian Government
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CIMB Investment Bank - Malaysia
- Directorate General of MIneral and Coal - Indonesia
- Samtan Co., Ltd - South Korea
- Banpu Public Company Limited - Thailand
- Ministry of Mines - Canada
- Holcim Trading Pte Ltd - Singapore
- Oldendorff Carriers - Singapore
- Eastern Energy - Thailand
- Jindal Steel & Power Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Kobexindo Tractors - Indoneisa
- Bukit Makmur.PT - Indonesia
- Medco Energi Mining Internasional
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- Rio Tinto Coal - Australia
- GN Power Mariveles Coal Plant, Philippines
- Kapuas Tunggal Persada - Indonesia
- Madhucon Powers Ltd - India
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- AsiaOL BioFuels Corp., Philippines
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- Offshore Bulk Terminal Pte Ltd, Singapore
- White Energy Company Limited
- GVK Power & Infra Limited - India
- Billiton Holdings Pty Ltd - Australia
- Manunggal Multi Energi - Indonesia
- Antam Resourcindo - Indonesia
- SMC Global Power, Philippines
- India Bulls Power Limited - India
- Commonwealth Bank - Australia
- Parliament of New Zealand
- Minerals Council of Australia
- Kalimantan Lumbung Energi - Indonesia
- Savvy Resources Ltd - HongKong
- Indogreen Group - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Global Coal Blending Company Limited - Australia
- ASAPP Information Group - India
- GMR Energy Limited - India
- CNBM International Corporation - China
- PNOC Exploration Corporation - Philippines
- Coal and Oil Company - UAE
- Krishnapatnam Port Company Ltd. - India
- GAC Shipping (India) Pvt Ltd
- MS Steel International - UAE
- Formosa Plastics Group - Taiwan
- Standard Chartered Bank - UAE
- Leighton Contractors Pty Ltd - Australia
- Uttam Galva Steels Limited - India
- Maheswari Brothers Coal Limited - India
- OPG Power Generation Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Essar Steel Hazira Ltd - India
- Siam City Cement - Thailand
- Electricity Authority, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Indian Oil Corporation Limited
- Aditya Birla Group - India
- Karbindo Abesyapradhi - Indoneisa
- New Zealand Coal & Carbon
- Vijayanagar Sugar Pvt Ltd - India
- Latin American Coal - Colombia
- Tata Chemicals Ltd - India
- Renaissance Capital - South Africa
- IHS Mccloskey Coal Group - USA
- Orica Australia Pty. Ltd.
- Mjunction Services Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Central Electricity Authority - India
- ICICI Bank Limited - India
- Borneo Indobara - Indonesia
- Interocean Group of Companies - India
- Mintek Dendrill Indonesia
- Deloitte Consulting - India
- Heidelberg Cement - Germany
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- Simpson Spence & Young - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bangladesh Power Developement Board
- VISA Power Limited - India
- Jaiprakash Power Ventures ltd
- Meralco Power Generation, Philippines
- Toyota Tsusho Corporation, Japan
- Baramulti Group, Indonesia
- Xindia Steels Limited - India
- Thai Mozambique Logistica
- Malabar Cements Ltd - India
- Larsen & Toubro Limited - India
- Kideco Jaya Agung - Indonesia
- Posco Energy - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- Cigading International Bulk Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- SN Aboitiz Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Iligan Light & Power Inc, Philippines
- South Luzon Thermal Energy Corporation
- Bhatia International Limited - India
- Tamil Nadu electricity Board
- Africa Commodities Group - South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parry Sugars Refinery, India
- Lanco Infratech Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Rashtriya Ispat Nigam Limited - India
- Pendopo Energi Batubara - Indonesia
- McConnell Dowell - Australia
- Eastern Coal Council - USA
- Therma Luzon, Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Straits Asia Resources Limited - Singapore
- Barasentosa Lestari - Indonesia
- Mercuria Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
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- Petron Corporation, Philippines
- The State Trading Corporation of India Ltd
- Indonesian Coal Mining Association
- Aboitiz Power Corporation - Philippines
- Vedanta Resources Plc - India
- Binh Thuan Hamico - Vietnam
- Indo Tambangraya Megah - Indonesia
- Ind-Barath Power Infra Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Wood Mackenzie - Singapore
- Australian Coal Association
- Semirara Mining Corp, Philippines
- Dalmia Cement Bharat India
- Price Waterhouse Coopers - Russia
- San Jose City I Power Corp, Philippines
- Global Business Power Corporation, Philippines
- Chamber of Mines of South Africa
- Thiess Contractors Indonesia
- Planning Commission, India
- Independent Power Producers Association of India
- Trasteel International SA, Italy
- Bhushan Steel Limited - India
- IEA Clean Coal Centre - UK
- Gujarat Sidhee Cement - India
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- Indian Energy Exchange, India
- Meenaskhi Energy Private Limited - India
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- Semirara Mining and Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Wilmar Investment Holdings
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- Maharashtra Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- SMG Consultants - Indonesia
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