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Tuesday, 07 May 19
UNDOUBTEDLY A VERY TROUBLED YEAR FOR THE DRY BULK MARKET, SAYS ALLIED SHIPPING
 Undoubtedly a very troubled year for the dry bulk market says Allied Shipping in its latest weekly report.
Thomas Chasapis, Research Analyst of Allied Shipping says, at the end of 2018, we were noting strong levels of optimism and bullish sentiment for the year that lay ahead, especially when given the overall recovery that had been noted in 2018 and 2017, whilst most core index figures finished at relatively good levels. Given these positive trends, for most, 2019 was set to also be a year of general upward momentum, inline somehow with the perceived perception that fundamentals were still improving and there would be more balanced and sustainable dynamics witnessed in the market. Even for those that held a more conservative view as to how things would transpire, few would have called the steepness of the downward correction noted, the increased volatility or the continuous shifts in sentiment that characterize the current market.
After more than 3 months of being stuck in the doldrums, Thomas Chasapis says, with volatility rising for the first quarter of this year by 178% compared to the same time frame back in 2018 (using standard deviation), we finally saw the BDI pass above the 1,000 basis point mark once more (a point last held at the end of January). Even if you consider this recovery to be momentary and driven mainly by the recovery noted in the Capesize segment, it still represents a huge “breather” for the overall dry sector.
Taking this last point, it is interesting to see the BCI trends of late in more detail. The BCI time charter average closed on Friday at US$ 11,182/day, while just a month prior, it had reached its lowest level (since 2016) of 3,460 US$/day, as such placing the recovery gain in the region of 223% in almost 1 month. If this doesn’t sound so impressive, the BCI index made an even more impressive jump, going from a low point of 92 basis points at the very start of April, up to 1,290 points (14 times higher!).
Furthermore, Research Analyst of Allied Shipping noted that, adding a taste of forward sentiment coming through the paper market, a considerable boost was noted not only for FFA contracts for this year, but also for the calendar years of 2020 and 2021. Notwithstanding this, there is still a fair bit of road ahead before we start witnessing any sort of rebalancing in this segment. The turmoil derived from the Vale incident a few months back continues to shake the market, while now, given that most parties involved are now in the process of adapting to the new market realities, we can expect huge levels of volatility and asymmetries for the rest of the year (at least). Moreover, even if we assume an increase in demand for iron ore in the near term and that it will be absorbed completely by the other main exporters (such as Australia), we will still be left with a tremendous gap in tonne-miles which will continue to add an excessive amount of negative pressure on freight rates.
All-in-all, while leaving aside the rather mediocre state being portrayed right now in the dry bulk sector in terms of earnings, the point that troubles most is the overall feeling of uncertainty surrounding the market. Moreover, given a potential 25% levy to be imposed in US imports from China by this Friday as mentioned by President Trump’s tweets on Sunday, it is obvious that we will continue to face random and unpredictable shocks, with tremendous consequences to the overall state of the freight market. With all being said, even under good and strong fundamentals (i.e. balanced supply-demand dynamics), it is very difficult at this point to make any confident assumptions as to what direction the market will take next, even on a short-term basis.
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Wednesday, 24 April 19
PANAMAX: IN THE EAST, THE MARKET MOVED SIDE-WAYS, WITH FEWER COAL CARGOES FROM INDONESIA PUTTING PRESSURE ON RATES - INTERMODAL
Sentiment in the Dry Bulk market slowly but steadily kept improving last week as Capesize rates remained in recovery mode and Panamax earnings also ...
Wednesday, 24 April 19
SHIPPING MARKET INSIGHT - IS THIS A BANKERS' MARKET? - INTERMODAL
Over the last 10 years, many of the traditional and top lending banks have made the decision to either downsize their portfolios or even exit shipp ...
Monday, 22 April 19
COAL INDIA TO ASK POWER PLANTS TO CUT COAL IMPORTS - DNA
Co to encourage import substitution with domestic supplies at power plants
Surge in coal imports has now forced Coal India Ltd (CIL) ...
Thursday, 18 April 19
BIMCO SEES HARD TIMES AHEAD FOR CAPESIZES
China’s increased use of scrap metal for its production of crude steel is fundamentally critical to the dry bulk shipping industry. Mostly Ca ...
Wednesday, 17 April 19
ONCE AGAIN WE FACED WITH THE SITUATION OF THE DRY BALTIC INDEX BEING BELOW 1,000 POINTS - INTERMODAL
Once again we are faced with the situation of the Dry Baltic Index being below 1,000 points. In a market where the feeling of insecurity is almost ...
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Showing 1411 to 1415 news of total 6871 |
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- PowerSource Philippines DevCo
- Sical Logistics Limited - India
- McConnell Dowell - Australia
- Price Waterhouse Coopers - Russia
- Wood Mackenzie - Singapore
- Deloitte Consulting - India
- TNB Fuel Sdn Bhd - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Malabar Cements Ltd - India
- Australian Coal Association
- Minerals Council of Australia
- Merrill Lynch Commodities Europe
- Bukit Asam (Persero) Tbk - Indonesia
- Orica Mining Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Mercuria Energy - Indonesia
- Gujarat Sidhee Cement - India
- Makarim & Taira - Indonesia
- Antam Resourcindo - Indonesia
- Jaiprakash Power Ventures ltd
- Indian Oil Corporation Limited
- Lanco Infratech Ltd - India
- Intertek Mineral Services - Indonesia
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Indogreen Group - Indonesia
- Bukit Makmur.PT - Indonesia
- Agrawal Coal Company - India
- Globalindo Alam Lestari - Indonesia
- Romanian Commodities Exchange
- Alfred C Toepfer International GmbH - Germany
- Orica Australia Pty. Ltd.
- Indo Tambangraya Megah - Indonesia
- LBH Netherlands Bv - Netherlands
- Uttam Galva Steels Limited - India
- Meralco Power Generation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Cigading International Bulk Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- San Jose City I Power Corp, Philippines
- Bhushan Steel Limited - India
- Siam City Cement - Thailand
- Coalindo Energy - Indonesia
- IEA Clean Coal Centre - UK
- Formosa Plastics Group - Taiwan
- Maharashtra Electricity Regulatory Commission - India
- Rashtriya Ispat Nigam Limited - India
- Banpu Public Company Limited - Thailand
- Eastern Energy - Thailand
- Ind-Barath Power Infra Limited - India
- Binh Thuan Hamico - Vietnam
- TeaM Sual Corporation - Philippines
- Tamil Nadu electricity Board
- Trasteel International SA, Italy
- Larsen & Toubro Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Petron Corporation, Philippines
- Semirara Mining Corp, Philippines
- Goldman Sachs - Singapore
- European Bulk Services B.V. - Netherlands
- Planning Commission, India
- Australian Commodity Traders Exchange
- Videocon Industries ltd - India
- Directorate Of Revenue Intelligence - India
- Wilmar Investment Holdings
- PTC India Limited - India
- White Energy Company Limited
- Directorate General of MIneral and Coal - Indonesia
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- London Commodity Brokers - England
- Kideco Jaya Agung - Indonesia
- Ambuja Cements Ltd - India
- Ministry of Mines - Canada
- Ceylon Electricity Board - Sri Lanka
- Metalloyd Limited - United Kingdom
- MS Steel International - UAE
- Borneo Indobara - Indonesia
- Vedanta Resources Plc - India
- Kartika Selabumi Mining - Indonesia
- Kumho Petrochemical, South Korea
- Coal and Oil Company - UAE
- Indonesian Coal Mining Association
- Kepco SPC Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Madhucon Powers Ltd - India
- Simpson Spence & Young - Indonesia
- Electricity Generating Authority of Thailand
- Chettinad Cement Corporation Ltd - India
- Timah Investasi Mineral - Indoneisa
- The University of Queensland
- Kobexindo Tractors - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Eastern Coal Council - USA
- Central Java Power - Indonesia
- Independent Power Producers Association of India
- Vizag Seaport Private Limited - India
- Xindia Steels Limited - India
- Parliament of New Zealand
- Offshore Bulk Terminal Pte Ltd, Singapore
- VISA Power Limited - India
- Medco Energi Mining Internasional
- Energy Development Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Commonwealth Bank - Australia
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Singapore Mercantile Exchange
- Chamber of Mines of South Africa
- Jindal Steel & Power Ltd - India
- Sojitz Corporation - Japan
- Petrochimia International Co. Ltd.- Taiwan
- Iligan Light & Power Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Kapuas Tunggal Persada - Indonesia
- Attock Cement Pakistan Limited
- Samtan Co., Ltd - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- Aditya Birla Group - India
- Jorong Barutama Greston.PT - Indonesia
- Mjunction Services Limited - India
- Indian Energy Exchange, India
- Energy Link Ltd, New Zealand
- Cement Manufacturers Association - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sree Jayajothi Cements Limited - India
- Sindya Power Generating Company Private Ltd
- Thai Mozambique Logistica
- Parry Sugars Refinery, India
- South Luzon Thermal Energy Corporation
- Toyota Tsusho Corporation, Japan
- Carbofer General Trading SA - India
- Dalmia Cement Bharat India
- GAC Shipping (India) Pvt Ltd
- Ministry of Finance - Indonesia
- Bhoruka Overseas - Indonesia
- Posco Energy - South Korea
- Heidelberg Cement - Germany
- Pendopo Energi Batubara - Indonesia
- Holcim Trading Pte Ltd - Singapore
- ASAPP Information Group - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indika Energy - Indonesia
- Anglo American - United Kingdom
- Savvy Resources Ltd - HongKong
- AsiaOL BioFuels Corp., Philippines
- Bhatia International Limited - India
- Barasentosa Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- Tata Chemicals Ltd - India
- Global Business Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Africa Commodities Group - South Africa
- IHS Mccloskey Coal Group - USA
- GMR Energy Limited - India
- Oldendorff Carriers - Singapore
- Latin American Coal - Colombia
- Marubeni Corporation - India
- Bukit Baiduri Energy - Indonesia
- CNBM International Corporation - China
- Ministry of Transport, Egypt
- Bulk Trading Sa - Switzerland
- Meenaskhi Energy Private Limited - India
- Riau Bara Harum - Indonesia
- Sakthi Sugars Limited - India
- Gujarat Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Aboitiz Power Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Power Finance Corporation Ltd., India
- Manunggal Multi Energi - Indonesia
- SN Aboitiz Power Inc, Philippines
- ICICI Bank Limited - India
- Salva Resources Pvt Ltd - India
- Central Electricity Authority - India
- SMC Global Power, Philippines
- Bangladesh Power Developement Board
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- Port Waratah Coal Services - Australia
- The Treasury - Australian Government
- Coastal Gujarat Power Limited - India
- Standard Chartered Bank - UAE
- Baramulti Group, Indonesia
- Therma Luzon, Inc, Philippines
- Grasim Industreis Ltd - India
- SMG Consultants - Indonesia
- New Zealand Coal & Carbon
- Semirara Mining and Power Corporation, Philippines
- India Bulls Power Limited - India
- GVK Power & Infra Limited - India
- Altura Mining Limited, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Leighton Contractors Pty Ltd - Australia
- Global Green Power PLC Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Essar Steel Hazira Ltd - India
- Siam City Cement PLC, Thailand
- Bayan Resources Tbk. - Indonesia
- Sarangani Energy Corporation, Philippines
- Star Paper Mills Limited - India
- Georgia Ports Authority, United States
- Edison Trading Spa - Italy
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