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, 24 March 21
MARKET INSIGHT - INTERMODAL
Since the start of the pandemic, the shipping industry has efficiently responded to ensure the continuity of operations and hence the security of s ...
Tuesday, 23 March 21
LOWER WHOLESALE PRICES PUT PRESSURE ON AUSTRALIAN ENERGY RETAILERS - FITCH RATINGS
Fitch Ratings expects the low wholesale energy prices in the Australian National Energy Market to persist through to 2022, which will affect electr ...
Tuesday, 23 March 21
SCRUBBER-FITTED SHIPS NEARLY DOUBLE AS FUEL SPREAD SETTLES AT $118 PER MT - PETER SAND
As the lion’s share of the world fleet replaced high-sulphur fuel oil (HSFO) with low-sulphur fuel oil (LFSO) as a mean of propulsion to be c ...
Tuesday, 23 March 21
CHINA'S COAL OUTPUT EDGES UP IN FIRST TWO MONTHS - XINHUA
China’s raw coal output rose 25 percent year on year to 620 million tonnes in the first two months of 2021, official data showed.
...
Friday, 12 March 21
INDIA SHOULD FOCUS ON REDUCING COAL POWER GENERATION INSTEAD OF CAPACITY - IEEFA
Nearly half of existing coal power in India is more expensive than new renewable power
To get to its ambitious climate targets, Indi ...
|
|
|
Showing 616 to 620 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Central Electricity Authority - India
- Australian Coal Association
- Altura Mining Limited, Indonesia
- Sical Logistics Limited - India
- Coalindo Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Thai Mozambique Logistica
- Heidelberg Cement - Germany
- Bangladesh Power Developement Board
- Krishnapatnam Port Company Ltd. - India
- VISA Power Limited - India
- South Luzon Thermal Energy Corporation
- Jindal Steel & Power Ltd - India
- Baramulti Group, Indonesia
- Standard Chartered Bank - UAE
- Leighton Contractors Pty Ltd - Australia
- Aditya Birla Group - India
- Salva Resources Pvt Ltd - India
- Thiess Contractors Indonesia
- Gujarat Electricity Regulatory Commission - India
- Indogreen Group - Indonesia
- Siam City Cement - Thailand
- Kumho Petrochemical, South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- Semirara Mining Corp, Philippines
- Interocean Group of Companies - India
- Kobexindo Tractors - Indoneisa
- The University of Queensland
- Petrochimia International Co. Ltd.- Taiwan
- San Jose City I Power Corp, Philippines
- Mjunction Services Limited - India
- Energy Development Corp, Philippines
- Commonwealth Bank - Australia
- CIMB Investment Bank - Malaysia
- Planning Commission, India
- Georgia Ports Authority, United States
- Parliament of New Zealand
- Cement Manufacturers Association - India
- Kapuas Tunggal Persada - Indonesia
- Vizag Seaport Private Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Ministry of Transport, Egypt
- Goldman Sachs - Singapore
- Grasim Industreis Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- Global Coal Blending Company Limited - Australia
- Coastal Gujarat Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Mines - Canada
- Sojitz Corporation - Japan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Carbofer General Trading SA - India
- Oldendorff Carriers - Singapore
- Minerals Council of Australia
- Essar Steel Hazira Ltd - India
- Global Green Power PLC Corporation, Philippines
- Romanian Commodities Exchange
- Banpu Public Company Limited - Thailand
- Kartika Selabumi Mining - Indonesia
- Port Waratah Coal Services - Australia
- Formosa Plastics Group - Taiwan
- India Bulls Power Limited - India
- Mercuria Energy - Indonesia
- Indonesian Coal Mining Association
- Maharashtra Electricity Regulatory Commission - India
- ASAPP Information Group - India
- Mercator Lines Limited - India
- Indian Energy Exchange, India
- Borneo Indobara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Edison Trading Spa - Italy
- Bulk Trading Sa - Switzerland
- PTC India Limited - India
- Madhucon Powers Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- White Energy Company Limited
- ICICI Bank Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Karbindo Abesyapradhi - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Ambuja Cements Ltd - India
- Xindia Steels Limited - India
- Kaltim Prima Coal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- SMC Global Power, Philippines
- Eastern Coal Council - USA
- Globalindo Alam Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- Vedanta Resources Plc - India
- Barasentosa Lestari - Indonesia
- Ministry of Finance - Indonesia
- Merrill Lynch Commodities Europe
- Siam City Cement PLC, Thailand
- Tata Chemicals Ltd - India
- IHS Mccloskey Coal Group - USA
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Chamber of Mines of South Africa
- Timah Investasi Mineral - Indoneisa
- Central Java Power - Indonesia
- Singapore Mercantile Exchange
- Gujarat Sidhee Cement - India
- Riau Bara Harum - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Bayan Resources Tbk. - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- New Zealand Coal & Carbon
- Ind-Barath Power Infra Limited - India
- GAC Shipping (India) Pvt Ltd
- Toyota Tsusho Corporation, Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Intertek Mineral Services - Indonesia
- Orica Australia Pty. Ltd.
- Semirara Mining and Power Corporation, Philippines
- Makarim & Taira - Indonesia
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Karaikal Port Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Electricity Authority, New Zealand
- Star Paper Mills Limited - India
- Africa Commodities Group - South Africa
- The State Trading Corporation of India Ltd
- Sakthi Sugars Limited - India
- Directorate Of Revenue Intelligence - India
- Electricity Generating Authority of Thailand
- Cigading International Bulk Terminal - Indonesia
- IEA Clean Coal Centre - UK
- Kepco SPC Power Corporation, Philippines
- Petron Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Jorong Barutama Greston.PT - Indonesia
- OPG Power Generation Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Videocon Industries ltd - India
- Posco Energy - South Korea
- Mintek Dendrill Indonesia
- TeaM Sual Corporation - Philippines
- PowerSource Philippines DevCo
- Ceylon Electricity Board - Sri Lanka
- SMG Consultants - Indonesia
- Parry Sugars Refinery, India
- Indo Tambangraya Megah - Indonesia
- Independent Power Producers Association of India
- GMR Energy Limited - India
- Attock Cement Pakistan Limited
- London Commodity Brokers - England
- Binh Thuan Hamico - Vietnam
- Billiton Holdings Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Medco Energi Mining Internasional
- Simpson Spence & Young - Indonesia
- Meenaskhi Energy Private Limited - India
- Larsen & Toubro Limited - India
- Bharathi Cement Corporation - India
- Savvy Resources Ltd - HongKong
- Jaiprakash Power Ventures ltd
- Meralco Power Generation, Philippines
- Sarangani Energy Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Tamil Nadu electricity Board
- Bukit Baiduri Energy - Indonesia
- MS Steel International - UAE
- Renaissance Capital - South Africa
- Wood Mackenzie - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Australian Commodity Traders Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Price Waterhouse Coopers - Russia
- Pendopo Energi Batubara - Indonesia
- Wilmar Investment Holdings
- AsiaOL BioFuels Corp., Philippines
- Samtan Co., Ltd - South Korea
- Economic Council, Georgia
- Antam Resourcindo - Indonesia
- Anglo American - United Kingdom
- Agrawal Coal Company - India
- Indika Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Rashtriya Ispat Nigam Limited - India
- McConnell Dowell - Australia
- Marubeni Corporation - India
- Deloitte Consulting - India
- Holcim Trading Pte Ltd - Singapore
- Metalloyd Limited - United Kingdom
- Coal and Oil Company - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Business Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Orica Mining Services - Indonesia
- CNBM International Corporation - China
- Dalmia Cement Bharat India
- Aboitiz Power Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Therma Luzon, Inc, Philippines
- Eastern Energy - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Malabar Cements Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Bhushan Steel Limited - India
- The Treasury - Australian Government
- Trasteel International SA, Italy
- GVK Power & Infra Limited - India
- Lanco Infratech Ltd - India
- Manunggal Multi Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Bhatia International Limited - India
- Maheswari Brothers Coal Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Indian Oil Corporation Limited
|
| |
| |
|
