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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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- South Luzon Thermal Energy Corporation
- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Jaiprakash Power Ventures ltd
- CNBM International Corporation - China
- European Bulk Services B.V. - Netherlands
- Ministry of Mines - Canada
- Coalindo Energy - Indonesia
- New Zealand Coal & Carbon
- Kartika Selabumi Mining - Indonesia
- Orica Mining Services - Indonesia
- Samtan Co., Ltd - South Korea
- Electricity Generating Authority of Thailand
- Chamber of Mines of South Africa
- Bangladesh Power Developement Board
- Jorong Barutama Greston.PT - Indonesia
- MS Steel International - UAE
- Bhatia International Limited - India
- Mercuria Energy - Indonesia
- Grasim Industreis Ltd - India
- Mjunction Services Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Agrawal Coal Company - India
- Parliament of New Zealand
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Rio Tinto Coal - Australia
- Meenaskhi Energy Private Limited - India
- LBH Netherlands Bv - Netherlands
- Antam Resourcindo - Indonesia
- Orica Australia Pty. Ltd.
- Cigading International Bulk Terminal - Indonesia
- Carbofer General Trading SA - India
- Maheswari Brothers Coal Limited - India
- Standard Chartered Bank - UAE
- Essar Steel Hazira Ltd - India
- PTC India Limited - India
- Simpson Spence & Young - Indonesia
- Sindya Power Generating Company Private Ltd
- AsiaOL BioFuels Corp., Philippines
- Kohat Cement Company Ltd. - Pakistan
- Global Business Power Corporation, Philippines
- London Commodity Brokers - England
- GVK Power & Infra Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Siam City Cement - Thailand
- Kobexindo Tractors - Indoneisa
- Energy Development Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Timah Investasi Mineral - Indoneisa
- Kaltim Prima Coal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Karbindo Abesyapradhi - Indoneisa
- Xindia Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Wood Mackenzie - Singapore
- Tata Chemicals Ltd - India
- SN Aboitiz Power Inc, Philippines
- Parry Sugars Refinery, India
- Borneo Indobara - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Dalmia Cement Bharat India
- Eastern Energy - Thailand
- Planning Commission, India
- Meralco Power Generation, Philippines
- Ambuja Cements Ltd - India
- Ministry of Finance - Indonesia
- GAC Shipping (India) Pvt Ltd
- Indika Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Sical Logistics Limited - India
- Bhoruka Overseas - Indonesia
- Trasteel International SA, Italy
- Kumho Petrochemical, South Korea
- Asmin Koalindo Tuhup - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
- Economic Council, Georgia
- Thiess Contractors Indonesia
- Baramulti Group, Indonesia
- Salva Resources Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- ASAPP Information Group - India
- Iligan Light & Power Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Independent Power Producers Association of India
- GMR Energy Limited - India
- Videocon Industries ltd - India
- PNOC Exploration Corporation - Philippines
- Semirara Mining Corp, Philippines
- Central Electricity Authority - India
- SMC Global Power, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Formosa Plastics Group - Taiwan
- Commonwealth Bank - Australia
- Ceylon Electricity Board - Sri Lanka
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Wilmar Investment Holdings
- Directorate General of MIneral and Coal - Indonesia
- Oldendorff Carriers - Singapore
- Chettinad Cement Corporation Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Romanian Commodities Exchange
- Metalloyd Limited - United Kingdom
- Madhucon Powers Ltd - India
- Minerals Council of Australia
- Marubeni Corporation - India
- Lanco Infratech Ltd - India
- Bukit Baiduri Energy - Indonesia
- Altura Mining Limited, Indonesia
- Therma Luzon, Inc, Philippines
- Power Finance Corporation Ltd., India
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
- Singapore Mercantile Exchange
- McConnell Dowell - Australia
- Jindal Steel & Power Ltd - India
- Sree Jayajothi Cements Limited - India
- Electricity Authority, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Georgia Ports Authority, United States
- Mercator Lines Limited - India
- Anglo American - United Kingdom
- Deloitte Consulting - India
- White Energy Company Limited
- Krishnapatnam Port Company Ltd. - India
- Goldman Sachs - Singapore
- Edison Trading Spa - Italy
- India Bulls Power Limited - India
- ICICI Bank Limited - India
- Sakthi Sugars Limited - India
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
- Thai Mozambique Logistica
- Medco Energi Mining Internasional
- Gujarat Sidhee Cement - India
- Gujarat Electricity Regulatory Commission - India
- Vijayanagar Sugar Pvt Ltd - India
- IEA Clean Coal Centre - UK
- VISA Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Malabar Cements Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement PLC, Thailand
- Uttam Galva Steels Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhushan Steel Limited - India
- Riau Bara Harum - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ind-Barath Power Infra Limited - India
- Pendopo Energi Batubara - Indonesia
- Star Paper Mills Limited - India
- Australian Coal Association
- Bharathi Cement Corporation - India
- Petron Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Barasentosa Lestari - Indonesia
- Sojitz Corporation - Japan
- Tamil Nadu electricity Board
- Bulk Trading Sa - Switzerland
- Merrill Lynch Commodities Europe
- Coal and Oil Company - UAE
- Africa Commodities Group - South Africa
- Renaissance Capital - South Africa
- Directorate Of Revenue Intelligence - India
- Indian Oil Corporation Limited
- Gujarat Mineral Development Corp Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Attock Cement Pakistan Limited
- Australian Commodity Traders Exchange
- Savvy Resources Ltd - HongKong
- Binh Thuan Hamico - Vietnam
- Indogreen Group - Indonesia
- Global Coal Blending Company Limited - Australia
- Ministry of Transport, Egypt
- Makarim & Taira - Indonesia
- The Treasury - Australian Government
- Indonesian Coal Mining Association
- Global Green Power PLC Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- SMG Consultants - Indonesia
- Aboitiz Power Corporation - Philippines
- Energy Link Ltd, New Zealand
- Karaikal Port Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Interocean Group of Companies - India
- Bukit Makmur.PT - Indonesia
- Heidelberg Cement - Germany
- Cement Manufacturers Association - India
- Aditya Birla Group - India
- Coastal Gujarat Power Limited - India
- Sarangani Energy Corporation, Philippines
- The State Trading Corporation of India Ltd
- Latin American Coal - Colombia
- Leighton Contractors Pty Ltd - Australia
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Posco Energy - South Korea
- Mintek Dendrill Indonesia
- Alfred C Toepfer International GmbH - Germany
- Banpu Public Company Limited - Thailand
- Bayan Resources Tbk. - Indonesia
- Larsen & Toubro Limited - India
- Indian Energy Exchange, India
- Central Java Power - Indonesia
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