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 December 20
INDONESIAN COAL RECOVERING - FITCH
Commenting on Indonesian coal, Fitch Ratings, the Indonesian 4,200 kcal index has begun to recover, improving to over USD 29 in November compared t ...
Tuesday, 15 December 20
NEWCASTLE PRICES RECOVER - FITCH
Prices for the benchmark Newcastle 6,000 kcal/kg grade coal have rebounded to over USD 70/tonne since late November as major Asian economies ease l ...
Tuesday, 15 December 20
APAC COAL PRICES REBOUND ON IMPROVED DEMAND AND SUPPLY CUTS - FITCH RATINGS
Prices for the benchmark Newcastle 6,000kcal/kg grade coal have rebounded to over USD70/tonne since late November as major Asian economies ease loc ...
Tuesday, 15 December 20
CHINA EXTENDS FULL OPEN GESTURE TO IMPORTED COAL EXCEPT FOR AUSTRALIA - GLOBAL TIMES
Domestic, overseas suppliers will take up share with easier clearance
China's top economic planner on Saturday gave approval to ...
Monday, 14 December 20
PHILIPPINE BANK RCBC TO STOP LENDING FOR NEW COAL-FIRED POWER PROJECTS - MANILA BULLETIN
Yuchengco-led Rizal Commercial Banking Corporation (RCBC) has forthrightly declared that it will no longer extend financing to new coal-fired power ...
|
|
|
Showing 706 to 710 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Semirara Mining Corp, Philippines
- ASAPP Information Group - India
- Essar Steel Hazira Ltd - India
- White Energy Company Limited
- Posco Energy - South Korea
- Intertek Mineral Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Grasim Industreis Ltd - India
- Global Coal Blending Company Limited - Australia
- Semirara Mining and Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Electricity Generating Authority of Thailand
- Gujarat Mineral Development Corp Ltd - India
- Kartika Selabumi Mining - Indonesia
- Lanco Infratech Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Eastern Coal Council - USA
- SMC Global Power, Philippines
- Ceylon Electricity Board - Sri Lanka
- Agrawal Coal Company - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Africa Commodities Group - South Africa
- Electricity Authority, New Zealand
- Larsen & Toubro Limited - India
- Thai Mozambique Logistica
- Coalindo Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Videocon Industries ltd - India
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- Petron Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Bharathi Cement Corporation - India
- Directorate Of Revenue Intelligence - India
- Mercuria Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Mercator Lines Limited - India
- Samtan Co., Ltd - South Korea
- Simpson Spence & Young - Indonesia
- Anglo American - United Kingdom
- Central Electricity Authority - India
- Carbofer General Trading SA - India
- PTC India Limited - India
- PowerSource Philippines DevCo
- Kumho Petrochemical, South Korea
- Gujarat Sidhee Cement - India
- Trasteel International SA, Italy
- ICICI Bank Limited - India
- Parliament of New Zealand
- Standard Chartered Bank - UAE
- Medco Energi Mining Internasional
- Savvy Resources Ltd - HongKong
- Ambuja Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Sojitz Corporation - Japan
- Bahari Cakrawala Sebuku - Indonesia
- Global Green Power PLC Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Miang Besar Coal Terminal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Wilmar Investment Holdings
- Therma Luzon, Inc, Philippines
- CIMB Investment Bank - Malaysia
- Rio Tinto Coal - Australia
- Edison Trading Spa - Italy
- Merrill Lynch Commodities Europe
- GVK Power & Infra Limited - India
- SMG Consultants - Indonesia
- Sarangani Energy Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- IEA Clean Coal Centre - UK
- Indogreen Group - Indonesia
- Riau Bara Harum - Indonesia
- Mintek Dendrill Indonesia
- Indo Tambangraya Megah - Indonesia
- The University of Queensland
- Directorate General of MIneral and Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Ministry of Transport, Egypt
- Xindia Steels Limited - India
- Heidelberg Cement - Germany
- Bhatia International Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Interocean Group of Companies - India
- Wood Mackenzie - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Romanian Commodities Exchange
- Malabar Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Commonwealth Bank - Australia
- Madhucon Powers Ltd - India
- South Luzon Thermal Energy Corporation
- Oldendorff Carriers - Singapore
- Ministry of Mines - Canada
- Indian Energy Exchange, India
- Tata Chemicals Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Electricity Regulatory Commission - India
- Star Paper Mills Limited - India
- Bhushan Steel Limited - India
- Bulk Trading Sa - Switzerland
- Global Business Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Baramulti Group, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ind-Barath Power Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Billiton Holdings Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Eastern Energy - Thailand
- LBH Netherlands Bv - Netherlands
- Economic Council, Georgia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Timah Investasi Mineral - Indoneisa
- Orica Mining Services - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Indika Energy - Indonesia
- Jaiprakash Power Ventures ltd
- Sical Logistics Limited - India
- The State Trading Corporation of India Ltd
- Antam Resourcindo - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Bangladesh Power Developement Board
- Indian Oil Corporation Limited
- Cement Manufacturers Association - India
- Bukit Asam (Persero) Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Tamil Nadu electricity Board
- Australian Coal Association
- Karaikal Port Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- OPG Power Generation Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Orica Australia Pty. Ltd.
- Planning Commission, India
- Borneo Indobara - Indonesia
- Energy Link Ltd, New Zealand
- Thiess Contractors Indonesia
- Binh Thuan Hamico - Vietnam
- Indonesian Coal Mining Association
- Iligan Light & Power Inc, Philippines
- Attock Cement Pakistan Limited
- Vedanta Resources Plc - India
- Sindya Power Generating Company Private Ltd
- Kapuas Tunggal Persada - Indonesia
- Meenaskhi Energy Private Limited - India
- Independent Power Producers Association of India
- Dalmia Cement Bharat India
- Sree Jayajothi Cements Limited - India
- PNOC Exploration Corporation - Philippines
- Meralco Power Generation, Philippines
- New Zealand Coal & Carbon
- Goldman Sachs - Singapore
- Port Waratah Coal Services - Australia
- TeaM Sual Corporation - Philippines
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- London Commodity Brokers - England
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Energy Development Corp, Philippines
- Formosa Plastics Group - Taiwan
- Bhoruka Overseas - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- McConnell Dowell - Australia
- Krishnapatnam Port Company Ltd. - India
- International Coal Ventures Pvt Ltd - India
- Central Java Power - Indonesia
- Parry Sugars Refinery, India
- Makarim & Taira - Indonesia
- Vizag Seaport Private Limited - India
- Chamber of Mines of South Africa
- AsiaOL BioFuels Corp., Philippines
- Sakthi Sugars Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Metalloyd Limited - United Kingdom
- TNB Fuel Sdn Bhd - Malaysia
- Georgia Ports Authority, United States
- Power Finance Corporation Ltd., India
- Alfred C Toepfer International GmbH - Germany
- The Treasury - Australian Government
- MS Steel International - UAE
- Australian Commodity Traders Exchange
- Marubeni Corporation - India
- VISA Power Limited - India
- GMR Energy Limited - India
- Aditya Birla Group - India
- Siam City Cement - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- Banpu Public Company Limited - Thailand
- SN Aboitiz Power Inc, Philippines
- Latin American Coal - Colombia
- Jindal Steel & Power Ltd - India
- Deloitte Consulting - India
- Renaissance Capital - South Africa
- Altura Mining Limited, Indonesia
- Pendopo Energi Batubara - Indonesia
- Kaltim Prima Coal - Indonesia
- India Bulls Power Limited - India
- CNBM International Corporation - China
- Rashtriya Ispat Nigam Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Singapore Mercantile Exchange
- Minerals Council of Australia
- Ministry of Finance - Indonesia
- Kideco Jaya Agung - Indonesia
|
| |
| |
|
