We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 17 March 21
MARKET INSIGHT - INTERMODAL
 Shipping market players are familiar with the inverse correlation between the freight market and demolition activity i.e. when the market picks up we usually observe demolition activity declining and vice versa, while the level of scrapping eventually contributes to a new market equilibrium.
In order for demolition activity to be impacted in either direction, market expectations for the medium term have to be aligned with actual freight market conditions and thus demolition activity reacts with some time lag to the current freight market environment. The decision to sell a vessel for scrap is not only driven by the state of the market cycle and expectations, but to a great extent by the offered scrap price at the time vs the price fetched at the 2nd hand market.
As we stand, owners of vintage tonnage are obviously trying to exploit the current sound performance across all Dry Bulk & Container segments and prefer to keep their vessels for further trading rather than turning to beach yards. Despite positive market conditions in these two segments, possible demolition candidates could be those old units that have to be docked for surveys and their Owners are not in favor of bearing this cost, or the parties that are looking for a fleet renewal. Still, in order to make the demolition decision tempting for them, scrap prices should rise further. Already, scrap prices have risen more than 10% since the beginning of the year, and are up more than 29% compared to last year.
So far during Q1 2021, the freight market and expectations in the Dry Bulk & containers segment have been extremely optimistic, whilst the wet market is still to recover from the severe downturn experienced as a result of oil supply cuts and soft demand amid the ongoing COVID-19 pandemic. YTD dry bulk scrapping rate in dwt terms is estimated -21% below the same period last year, while tankers scrapping is estimated +91.1% y-o-y.
However, taking a closer look at the tankers sold for scrap, we would expect that the current market conditions (with VLCC rates suppressed since the beginning of the year and recently turning negative) would favor the larger crude carriers towards scrap yards. Instead, since the beginning of the year, about 11 vessels were confirmed to be scrapped with half of them being Handysize or MR tankers, while the rest consist mainly of Aframax, two shuttle tankers and no VLCCs.
We could argue that maybe owners of the larger crude tankers have enough buffer from last year’s stellar earnings amid floating storage economics skyrocketing and thus can sustain adverse market conditions, but also expect that the market will turn a corner should OPEC+ reverses oil supply cuts in the next months. We could also argue that owners prefer to sell their vessels in the 2nd hand market, as the premium they are currently getting over selling them for scrap is quite substantial.
While scrap prices are expected to rise further during the 2H of the year amid increased demand for scrap restocking, it remains to be seen how all of the above factors will impact demolition activity across the different shipping segments, with expectations for tanker scrapping activity increasing nonetheless coming in higher.
By George Kallianiotis,
Valuation Department
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
Mr.George Panagopoulos
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
The Information contained within the website of COALspot.com is intended for informational purposes only and is not intended as professional counsel and should not be used as such.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 16 June 21
MARKET INSIGHT - INTERMODAL
“While approaching the second half of the year and summer season is just around the corner, COVID vaccination programs are steadily moving fo ...
Monday, 14 June 21
'WISHFUL THINKING': WHY CHINA NEEDS AUSTRALIAN IRON ORE FOR 'MANY YEARS' TO COME - YAHOO FINANCE AU
A “wintry period”.
That’s what’s expected to happen to Australia’s economy “when” China st ...
Sunday, 13 June 21
COAL AND LNG’S SURGE IN ASIA PLAYS INTO RENEWABLE ENERGY HANDS - REUTERS
Liquefied natural gas (LNG) and thermal coal prices in Asia have been roaring ahead in recent months amid strong demand, but while welcome news for ...
Friday, 11 June 21
5 REASONS GLOBAL SHIPPING COSTS WILL CONTINUE TO RISE - ING
No short-term relief
Shipping costs have been growing strongly since the autumn of 2020, but the first months of this year have seen a new surg ...
Friday, 11 June 21
ASIA COAL PRICES SURGE, BUT CHINA-AUSTRALIA DISPUTE MEANS RALLY IS UNEVEN - REUTERS
Thermal coal prices across Asia have surged to multi-year highs amid strong demand and some supply constraints, but some types of the fuel have don ...
|
|
|
Showing 551 to 555 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Sinarmas Energy and Mining - Indonesia
- Chettinad Cement Corporation Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Latin American Coal - Colombia
- Electricity Generating Authority of Thailand
- Sakthi Sugars Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- SMC Global Power, Philippines
- Ministry of Transport, Egypt
- Kobexindo Tractors - Indoneisa
- Directorate Of Revenue Intelligence - India
- GVK Power & Infra Limited - India
- Central Java Power - Indonesia
- Heidelberg Cement - Germany
- SMG Consultants - Indonesia
- PTC India Limited - India
- Energy Link Ltd, New Zealand
- Orica Mining Services - Indonesia
- Interocean Group of Companies - India
- Maheswari Brothers Coal Limited - India
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- Uttam Galva Steels Limited - India
- Minerals Council of Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Tata Chemicals Ltd - India
- The State Trading Corporation of India Ltd
- Africa Commodities Group - South Africa
- Indian Oil Corporation Limited
- Gujarat Sidhee Cement - India
- Edison Trading Spa - Italy
- Rio Tinto Coal - Australia
- Grasim Industreis Ltd - India
- White Energy Company Limited
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Singapore Mercantile Exchange
- Holcim Trading Pte Ltd - Singapore
- The University of Queensland
- Kumho Petrochemical, South Korea
- Bharathi Cement Corporation - India
- Bayan Resources Tbk. - Indonesia
- Lanco Infratech Ltd - India
- Intertek Mineral Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- TeaM Sual Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- IHS Mccloskey Coal Group - USA
- Agrawal Coal Company - India
- Pipit Mutiara Jaya. PT, Indonesia
- Global Green Power PLC Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Sical Logistics Limited - India
- Samtan Co., Ltd - South Korea
- Bukit Baiduri Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Formosa Plastics Group - Taiwan
- Bhushan Steel Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Globalindo Alam Lestari - Indonesia
- Indogreen Group - Indonesia
- Power Finance Corporation Ltd., India
- Altura Mining Limited, Indonesia
- Indian Energy Exchange, India
- Semirara Mining Corp, Philippines
- Malabar Cements Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Anglo American - United Kingdom
- Gujarat Mineral Development Corp Ltd - India
- Timah Investasi Mineral - Indoneisa
- Barasentosa Lestari - Indonesia
- Wilmar Investment Holdings
- The Treasury - Australian Government
- GMR Energy Limited - India
- Siam City Cement - Thailand
- Indo Tambangraya Megah - Indonesia
- Medco Energi Mining Internasional
- Romanian Commodities Exchange
- Jindal Steel & Power Ltd - India
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Savvy Resources Ltd - HongKong
- Riau Bara Harum - Indonesia
- Petron Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Australian Commodity Traders Exchange
- Bukit Makmur.PT - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- India Bulls Power Limited - India
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- Pendopo Energi Batubara - Indonesia
- Kepco SPC Power Corporation, Philippines
- Mercator Lines Limited - India
- Rashtriya Ispat Nigam Limited - India
- Georgia Ports Authority, United States
- Australian Coal Association
- Vizag Seaport Private Limited - India
- Wood Mackenzie - Singapore
- IEA Clean Coal Centre - UK
- Dalmia Cement Bharat India
- Electricity Authority, New Zealand
- Madhucon Powers Ltd - India
- Indonesian Coal Mining Association
- VISA Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Bahari Cakrawala Sebuku - Indonesia
- PNOC Exploration Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Makarim & Taira - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Therma Luzon, Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- ICICI Bank Limited - India
- San Jose City I Power Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- Chamber of Mines of South Africa
- Attock Cement Pakistan Limited
- Baramulti Group, Indonesia
- Vedanta Resources Plc - India
- Price Waterhouse Coopers - Russia
- Coalindo Energy - Indonesia
- Meralco Power Generation, Philippines
- Economic Council, Georgia
- Coal and Oil Company - UAE
- Mintek Dendrill Indonesia
- Marubeni Corporation - India
- GN Power Mariveles Coal Plant, Philippines
- Renaissance Capital - South Africa
- Port Waratah Coal Services - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- Cement Manufacturers Association - India
- Bangladesh Power Developement Board
- Videocon Industries ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Eastern Energy - Thailand
- Ministry of Mines - Canada
- Kapuas Tunggal Persada - Indonesia
- Independent Power Producers Association of India
- Energy Development Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- New Zealand Coal & Carbon
- London Commodity Brokers - England
- PowerSource Philippines DevCo
- CNBM International Corporation - China
- Ministry of Finance - Indonesia
- Meenaskhi Energy Private Limited - India
- Eastern Coal Council - USA
- CIMB Investment Bank - Malaysia
- Tamil Nadu electricity Board
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Mjunction Services Limited - India
- Coastal Gujarat Power Limited - India
- McConnell Dowell - Australia
- Maharashtra Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Metalloyd Limited - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- Aboitiz Power Corporation - Philippines
- Oldendorff Carriers - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ambuja Cements Ltd - India
- Aditya Birla Group - India
- Asmin Koalindo Tuhup - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kaltim Prima Coal - Indonesia
- Sojitz Corporation - Japan
- Goldman Sachs - Singapore
- GAC Shipping (India) Pvt Ltd
- International Coal Ventures Pvt Ltd - India
- ASAPP Information Group - India
- Xindia Steels Limited - India
- Antam Resourcindo - Indonesia
- Indika Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Standard Chartered Bank - UAE
- Straits Asia Resources Limited - Singapore
- Parry Sugars Refinery, India
- Sindya Power Generating Company Private Ltd
- European Bulk Services B.V. - Netherlands
- Star Paper Mills Limited - India
- Iligan Light & Power Inc, Philippines
- Commonwealth Bank - Australia
- Salva Resources Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Parliament of New Zealand
- Central Electricity Authority - India
- LBH Netherlands Bv - Netherlands
- AsiaOL BioFuels Corp., Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Thiess Contractors Indonesia
- Planning Commission, India
- Kohat Cement Company Ltd. - Pakistan
- Global Business Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Sree Jayajothi Cements Limited - India
- Trasteel International SA, Italy
- Karaikal Port Pvt Ltd - India
- Siam City Cement PLC, Thailand
- MS Steel International - UAE
- Binh Thuan Hamico - Vietnam
- Borneo Indobara - Indonesia
|
| |
| |
|
