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, 26 August 20
ASIAN COAL PRICES LIKELY TO REMAIN DEPRESSED SAY TRADERS, ANALYSTS - REUTERS
Asian coal prices, which have fallen around 25% this year as power demand slumped due to the coronavirus outbreak, are unlikely to move higher befo ...
Wednesday, 26 August 20
WORLD COAL EXPORTS: INDONESIAN THERMAL COAL EXPORTS HAVE COME UNDER PRESSURE AS THERMAL COAL PRICES WEAKEN - REPORT
Indonesia’s exports to decline sharply from record highs
Indonesia is the world’s largest thermal coal exporter, sellin ...
Wednesday, 26 August 20
JAPAN'S COAL IMPORTS ARE BEING AFFECTED BY COMPETING INFLUENCES - REPORT
Japan is the world’s third largest thermal coal importer, importing an estimated 135 million tonnes of thermal coal in 2019. The country&rsqu ...
Wednesday, 26 August 20
PENDING SOUTH KOREA LEGISLATION COULD FORCE HALT TO COUNTRY’S COAL PLANT EXPORT DEALS - KOREA ECONOMIC DAILY
South Korea’s parliament looks set to pass new legislation to ban financing on foreign coal power projects, putting all overseas coal-fired p ...
Tuesday, 25 August 20
INDIA'S IMPORTS FALL AS LOCKDOWNS IMPACT THE POWER AND INDUSTRIAL SECTORS - REPORT
India is the world’s second largest thermal coal consumer and importer, importing an estimated 211 million tonnes of thermal coal in 2019.&nb ...
|
|
|
Showing 811 to 815 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Vedanta Resources Plc - India
- Bahari Cakrawala Sebuku - Indonesia
- Renaissance Capital - South Africa
- Semirara Mining and Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Meralco Power Generation, Philippines
- Coal and Oil Company - UAE
- PowerSource Philippines DevCo
- Petron Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Borneo Indobara - Indonesia
- Parliament of New Zealand
- Energy Link Ltd, New Zealand
- Malabar Cements Ltd - India
- Deloitte Consulting - India
- Essar Steel Hazira Ltd - India
- Eastern Energy - Thailand
- Merrill Lynch Commodities Europe
- Mercator Lines Limited - India
- Posco Energy - South Korea
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Indogreen Group - Indonesia
- Anglo American - United Kingdom
- Heidelberg Cement - Germany
- The State Trading Corporation of India Ltd
- PTC India Limited - India
- Commonwealth Bank - Australia
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- Minerals Council of Australia
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Australian Commodity Traders Exchange
- Larsen & Toubro Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Toyota Tsusho Corporation, Japan
- Bulk Trading Sa - Switzerland
- Xindia Steels Limited - India
- Rio Tinto Coal - Australia
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kobexindo Tractors - Indoneisa
- Kumho Petrochemical, South Korea
- Holcim Trading Pte Ltd - Singapore
- San Jose City I Power Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- IEA Clean Coal Centre - UK
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
- Indonesian Coal Mining Association
- Latin American Coal - Colombia
- Sakthi Sugars Limited - India
- Standard Chartered Bank - UAE
- Attock Cement Pakistan Limited
- Singapore Mercantile Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Cigading International Bulk Terminal - Indonesia
- Siam City Cement - Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Orica Mining Services - Indonesia
- Samtan Co., Ltd - South Korea
- Makarim & Taira - Indonesia
- IHS Mccloskey Coal Group - USA
- Sical Logistics Limited - India
- SN Aboitiz Power Inc, Philippines
- Star Paper Mills Limited - India
- GAC Shipping (India) Pvt Ltd
- Thiess Contractors Indonesia
- The Treasury - Australian Government
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bayan Resources Tbk. - Indonesia
- MS Steel International - UAE
- VISA Power Limited - India
- Semirara Mining Corp, Philippines
- Edison Trading Spa - Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vizag Seaport Private Limited - India
- Timah Investasi Mineral - Indoneisa
- TeaM Sual Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Jaiprakash Power Ventures ltd
- Kaltim Prima Coal - Indonesia
- Oldendorff Carriers - Singapore
- Economic Council, Georgia
- Alfred C Toepfer International GmbH - Germany
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- Global Coal Blending Company Limited - Australia
- Manunggal Multi Energi - Indonesia
- European Bulk Services B.V. - Netherlands
- SMC Global Power, Philippines
- Port Waratah Coal Services - Australia
- Mercuria Energy - Indonesia
- Videocon Industries ltd - India
- New Zealand Coal & Carbon
- Tata Chemicals Ltd - India
- South Luzon Thermal Energy Corporation
- ICICI Bank Limited - India
- PNOC Exploration Corporation - Philippines
- Interocean Group of Companies - India
- Aditya Birla Group - India
- Krishnapatnam Port Company Ltd. - India
- Ambuja Cements Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- Bangladesh Power Developement Board
- Kepco SPC Power Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Banpu Public Company Limited - Thailand
- Bharathi Cement Corporation - India
- Carbofer General Trading SA - India
- Energy Development Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Planning Commission, India
- CNBM International Corporation - China
- London Commodity Brokers - England
- Parry Sugars Refinery, India
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Mines - Canada
- Chettinad Cement Corporation Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Altura Mining Limited, Indonesia
- Chamber of Mines of South Africa
- CIMB Investment Bank - Malaysia
- Sarangani Energy Corporation, Philippines
- Riau Bara Harum - Indonesia
- Siam City Cement PLC, Thailand
- Electricity Authority, New Zealand
- Trasteel International SA, Italy
- Formosa Plastics Group - Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Asam (Persero) Tbk - Indonesia
- Bhoruka Overseas - Indonesia
- Indika Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Orica Australia Pty. Ltd.
- Mintek Dendrill Indonesia
- Ministry of Transport, Egypt
- India Bulls Power Limited - India
- Bhushan Steel Limited - India
- Dalmia Cement Bharat India
- Wilmar Investment Holdings
- Price Waterhouse Coopers - Russia
- GMR Energy Limited - India
- Meenaskhi Energy Private Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Africa Commodities Group - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Indian Oil Corporation Limited
- Gujarat Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Kideco Jaya Agung - Indonesia
- Cement Manufacturers Association - India
- Salva Resources Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Wood Mackenzie - Singapore
- Ministry of Finance - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Baramulti Group, Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Mjunction Services Limited - India
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Directorate General of MIneral and Coal - Indonesia
- Australian Coal Association
- McConnell Dowell - Australia
- Jindal Steel & Power Ltd - India
- Metalloyd Limited - United Kingdom
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- ASAPP Information Group - India
- Global Business Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Therma Luzon, Inc, Philippines
- SMG Consultants - Indonesia
- Iligan Light & Power Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Maheswari Brothers Coal Limited - India
- Tamil Nadu electricity Board
- Bhatia International Limited - India
- Pendopo Energi Batubara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Lanco Infratech Ltd - India
- Thai Mozambique Logistica
- Sree Jayajothi Cements Limited - India
- GVK Power & Infra Limited - India
- Agrawal Coal Company - India
- Coastal Gujarat Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Straits Asia Resources Limited - Singapore
- Global Green Power PLC Corporation, Philippines
- Sojitz Corporation - Japan
- Power Finance Corporation Ltd., India
- Directorate Of Revenue Intelligence - India
- Medco Energi Mining Internasional
- Marubeni Corporation - India
- OPG Power Generation Pvt Ltd - India
- Central Java Power - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Coal Council - USA
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
|
| |
| |
|
