We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 18 February 20
WEEKLY MARKET ANALYSIS - ALLIED
 Under such poorly performing market circumstances, many usually take the historical approach, in order to better understand and further analyze the present state of the market. However, to what degree is this a "fair" comparison to undertake right now?
According to Thomas Chasapis, Research Analyst of Allied Shipping Research the freight collapse of 2016 in the dry bulk sector has been a reference case for every discussion when the market has undergone any severe downward pressure. However, despite its excessive impact, it was a "known" situation, or to put it more bluntly, it was 'an accident waiting to happen'.
Thomas Chasapis further noted that, the excess tonnage capacity was the result of the massive new order activity that had taken place in years prior, as well as, the disconnected relationship of demand and supply fundamentals, eventually pushing freight earnings to their perceived absolute bottom. After that, the market started to adapt to this new market reality, with more modest orderbook activity and, for a time, massive scrapping activity. This "rebalancing" phase helped translate over to a 2-year period of ever-improving freight market conditions (with some minor corrections here and there), coupled by a more stable market with lower volatility. Suddenly though, from the later part of 2018 the picture was promptly altered. This high-risk environment is not something new for the shipping industry, nor are the periodical exaggerations and asymmetries in realized earnings.
However, Thomas Chasapis, said in his latest research report, having experienced a series of single shock events in such a short period of time, it comes naturally to question the robustness of the different business models. Tail risks and “black swans", won’t be just catch phrases, but a change in investment attitude while we enter a new "era" of how we quantify different kinds of market risks (and their likelihood of being fulfilled).
According to Allied, the COVID-19 outbreak has disrupted most business activities worldwide, with the possible outcomes being numerous and presenting multiple decision directions to practitioners. In other words, we are in a genuine situation, where an absolute comparison to previously noted similar excessive negative pressures would be, to say the least, misleading. Prior to the beginning of this year, the discussion revolved around the potential of a two-tier market unfolding, depending on what type of fuel each vessel would burn. As it turns out and from all that has transpired, we may be experiencing a multi-tier freight market. The Pacific market is in sharp negative territory in terms of earnings, while in the Atlantic, things are relatively more promising (even if not particularly good). Moreover, especially for scrubbers-fitted units, freight rates are following a completely different orbit than what is presented by the quoted Baltic freight indices. The asymmetrical freight market is one of the many bizarre things happening right now. With a certain time-lag, asset prices are likely to follow this steep downward correction (this has not fully materialized yet). With the market in disarray, where uncertainty is the prevailing sentiment, the mispricing of different asset classes is the obvious outcome. The bargain attitude, as well as, the short-term unpredictable outlook has created an excessive "bid-ask spread", indicating a market in distress, unable to properly price both the future risks and trends involved. 2020 has already shown to be a challenging year. Even with a very weak short-term outlook, the market may well absorb most of the negative side effects and eventually return to an upward track much sooner than many expect.
Despite this however, the longer-term macroeconomic trends are still troubling. China is already facing the possibility of losing around 0.5% points from its projected growth for this year, something that would translate over to a significant step back in global seaborne trade, Thomas Chasapis concluded.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 12 February 20
MARKET INSIGHT - INTERMODAL
The recent Coronavirus outbreak in China has led to a global health emergency by World Health Organization and it is yet to be seen how long the ph ...
Wednesday, 12 February 20
CHANGES IN LNG MARKET COULD UNDERCUT PLANS FOR NEW JAPANESE COAL PLANTS - CLYDE RUSSELL
Reuters: Clyde Russell
The collapse in the spot price of liquefied natural gas (LNG) in Asia is a short-term phenomenon that may wel ...
Wednesday, 12 February 20
THE SHIPPING INDUSTRY SEES FREIGHT MARKETS IN A COMPLETE STATE OF COLLAPSE AS DEMAND GETS PARALYZED DUE TO CORONAVIRUS OUTBREAK - ALLIED
With China and the world still trying to contain the effects and come to terms with the Wuhan novel coronavirus outbreak, the shipping industry see ...
Wednesday, 12 February 20
WORLD STEEL PRODUCTION IN 2019 - BANCHERO COSTA
In a worrying development, global steel production slowed down considerably in the fourth quarter of 2019. In the final 3 months of 2019, total cru ...
Sunday, 09 February 20
SUPRAMAX: THE ASIAN ARENA STRUGGLED, A 50,000DWT SHIP FIXING A COAL RUN FROM EAST KALIMANTAN TO INDIA AT $2,000 - THE BALTIC BRIEFING
Capesize
The Capesize market endured another dreadful week of calamitous rate level falls, as the usual season low Q1 period combined with rece ...
|
|
|
Showing 1141 to 1145 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- San Jose City I Power Corp, Philippines
- Altura Mining Limited, Indonesia
- Cement Manufacturers Association - India
- Sojitz Corporation - Japan
- Aditya Birla Group - India
- Bhushan Steel Limited - India
- Kartika Selabumi Mining - Indonesia
- VISA Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- London Commodity Brokers - England
- Central Java Power - Indonesia
- Wilmar Investment Holdings
- CIMB Investment Bank - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- Aboitiz Power Corporation - Philippines
- Renaissance Capital - South Africa
- Indo Tambangraya Megah - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- Ministry of Finance - Indonesia
- Formosa Plastics Group - Taiwan
- Marubeni Corporation - India
- Kohat Cement Company Ltd. - Pakistan
- Orica Mining Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Africa Commodities Group - South Africa
- Mercuria Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Heidelberg Cement - Germany
- Jaiprakash Power Ventures ltd
- Global Green Power PLC Corporation, Philippines
- Uttam Galva Steels Limited - India
- Parry Sugars Refinery, India
- PNOC Exploration Corporation - Philippines
- Kideco Jaya Agung - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Orica Australia Pty. Ltd.
- Price Waterhouse Coopers - Russia
- Kumho Petrochemical, South Korea
- Borneo Indobara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- India Bulls Power Limited - India
- Grasim Industreis Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coastal Gujarat Power Limited - India
- Sakthi Sugars Limited - India
- GAC Shipping (India) Pvt Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Commonwealth Bank - Australia
- Barasentosa Lestari - Indonesia
- Tamil Nadu electricity Board
- Offshore Bulk Terminal Pte Ltd, Singapore
- The Treasury - Australian Government
- International Coal Ventures Pvt Ltd - India
- Rio Tinto Coal - Australia
- Binh Thuan Hamico - Vietnam
- Sree Jayajothi Cements Limited - India
- Globalindo Alam Lestari - Indonesia
- Straits Asia Resources Limited - Singapore
- Ministry of Mines - Canada
- Indian Energy Exchange, India
- Riau Bara Harum - Indonesia
- Mjunction Services Limited - India
- Kapuas Tunggal Persada - Indonesia
- The University of Queensland
- Madhucon Powers Ltd - India
- Sindya Power Generating Company Private Ltd
- Wood Mackenzie - Singapore
- PTC India Limited - India
- Planning Commission, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Dalmia Cement Bharat India
- IEA Clean Coal Centre - UK
- Minerals Council of Australia
- Siam City Cement - Thailand
- Meralco Power Generation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Independent Power Producers Association of India
- Latin American Coal - Colombia
- Kaltim Prima Coal - Indonesia
- New Zealand Coal & Carbon
- Goldman Sachs - Singapore
- Australian Commodity Traders Exchange
- Metalloyd Limited - United Kingdom
- Baramulti Group, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Coal and Oil Company - UAE
- Coalindo Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Petrochimia International Co. Ltd.- Taiwan
- LBH Netherlands Bv - Netherlands
- Romanian Commodities Exchange
- Krishnapatnam Port Company Ltd. - India
- Bharathi Cement Corporation - India
- Deloitte Consulting - India
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Maheswari Brothers Coal Limited - India
- Carbofer General Trading SA - India
- Indian Oil Corporation Limited
- Meenaskhi Energy Private Limited - India
- Thai Mozambique Logistica
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Edison Trading Spa - Italy
- Thiess Contractors Indonesia
- SMC Global Power, Philippines
- CNBM International Corporation - China
- Ambuja Cements Ltd - India
- Port Waratah Coal Services - Australia
- Bhatia International Limited - India
- SN Aboitiz Power Inc, Philippines
- Sical Logistics Limited - India
- Energy Development Corp, Philippines
- Singapore Mercantile Exchange
- Semirara Mining Corp, Philippines
- Gujarat Sidhee Cement - India
- Standard Chartered Bank - UAE
- Savvy Resources Ltd - HongKong
- Interocean Group of Companies - India
- Australian Coal Association
- PowerSource Philippines DevCo
- Agrawal Coal Company - India
- Indika Energy - Indonesia
- White Energy Company Limited
- Ministry of Transport, Egypt
- Samtan Co., Ltd - South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Chamber of Mines of South Africa
- Indonesian Coal Mining Association
- Siam City Cement PLC, Thailand
- Kobexindo Tractors - Indoneisa
- Vizag Seaport Private Limited - India
- Mercator Lines Limited - India
- OPG Power Generation Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Bukit Asam (Persero) Tbk - Indonesia
- Timah Investasi Mineral - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- Oldendorff Carriers - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Medco Energi Mining Internasional
- Ind-Barath Power Infra Limited - India
- Merrill Lynch Commodities Europe
- Simpson Spence & Young - Indonesia
- Iligan Light & Power Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Pendopo Energi Batubara - Indonesia
- Bangladesh Power Developement Board
- Rashtriya Ispat Nigam Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Energy Link Ltd, New Zealand
- Essar Steel Hazira Ltd - India
- GMR Energy Limited - India
- Salva Resources Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Bukit Baiduri Energy - Indonesia
- Antam Resourcindo - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Intertek Mineral Services - Indonesia
- Indogreen Group - Indonesia
- Larsen & Toubro Limited - India
- TeaM Sual Corporation - Philippines
- GVK Power & Infra Limited - India
- Star Paper Mills Limited - India
- Vedanta Resources Plc - India
- Attock Cement Pakistan Limited
- Banpu Public Company Limited - Thailand
- Karbindo Abesyapradhi - Indoneisa
- Lanco Infratech Ltd - India
- SMG Consultants - Indonesia
- Kepco SPC Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Economic Council, Georgia
- Electricity Generating Authority of Thailand
- Eastern Energy - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Bukit Makmur.PT - Indonesia
- Directorate Of Revenue Intelligence - India
- Sarangani Energy Corporation, Philippines
- MS Steel International - UAE
- Asmin Koalindo Tuhup - Indonesia
- Global Business Power Corporation, Philippines
- Georgia Ports Authority, United States
- Leighton Contractors Pty Ltd - Australia
- Makarim & Taira - Indonesia
- Parliament of New Zealand
- Jindal Steel & Power Ltd - India
- South Luzon Thermal Energy Corporation
- Eastern Coal Council - USA
- McConnell Dowell - Australia
- Manunggal Multi Energi - Indonesia
- Malabar Cements Ltd - India
- Mintek Dendrill Indonesia
- Ceylon Electricity Board - Sri Lanka
- Posco Energy - South Korea
- Xindia Steels Limited - India
- Alfred C Toepfer International GmbH - Germany
- Tata Chemicals Ltd - India
- The State Trading Corporation of India Ltd
- ICICI Bank Limited - India
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- Neyveli Lignite Corporation Ltd, - India
|
| |
| |
|
