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Friday, 30 July 10
DRY BULK MARKET BACK ON THE ROAD TO RECOVERY
 Freight rates for dry bulk carriers have continued to edge higher this week, with the industry’s main benchmark, the Baltic Dry Index (BDI) gaining once again on Thursday, to reach 1942 points (up by 41 on a daily basis), or 2.16 percent. This was the 10th straight session of increases, despite the fact that most analysts appear rather pessimistic on the short-term prospects of the market. Another conclusion from yesterday’s market, was the continued rebounding trend of the capesize segment, with the respective Capesize Index gaining a further 85 points or 4.72 percent. As a result, average daily freight rates have edged higher than the $12,500 mark they had been in the past days, to $14,443.
This rebound has been triggered by a firmer iron ore demand and a restocking taking place in China, as a result of a better looking steel market. Shipbrokers estimate that currently low spot prices for iron ore, not to mention freight rates are causing more cargo purchases from steel mills, looking to take advantage of the situation. For the moment, nobody can rule out a double dip of the market, but it seems that for now, dry bulk ship owners are out in the clearing. Meanwhile, FBR Capital Markets said, in comments quoted by Reuters, that the fourth quarter of 2010 is likely to support a healthier iron ore trade, as contracts for the raw material are likely to more closely reflect spot prices in that period, rather than in the third quarter.
But, apart from cargo demand trade patterns and seasonality, the main concern of the market is the oversupply issues it faces, in terms of new tonnage delivered. According to ICAP Shipping, the dry bulk fleet expanded by some 340 ships amounting to 32 millon dwt in the first half of this year after allowing for the limited number of scrappings and other removals (some 46 ships of 1.6 million dwt). At the same time a large number of ships were contracted for future construction (346/31.2 million Dwt). This rapid expansion in the fleet - some 54 million dwt (+13%) over the past 12 months has been a primary factor in the decline in earnings since May this year which have slumped from typically $48,000 pd for a Cape to $16,000 now in July.
According to recent comments from Piraeus-based shipbroker Cotzias, “it seems that the overexcitement that led owners to order more dry cargo new buildings will only put more pressure on a market that had previously been alive but with what proved to be “mechanical and medical support”!!! The freight levels that were in excess of 30k per day, made everyone think that the newbuilding price for a Kamsarmax is value for money, and yes it could well be… but what will happen if the current dropping freight market continues at this pace for another 2 months? And 2 months with the excess volatility of the current markets seems like a long time, in which time, will the dry market face freight levels that will be adequate to cover the break even daily operating expenses including basic loan repayments? And what can be easily said to be the breakeven levels of these days, especially for ships that were acquired during 2008 and 2007? We are cautious to the extent that the headache of newbuilding orders has been cured by a regular daily feed of strong pain killers… One “blessing” was we believe the lesson we have all learnt from the container market that recently only started to push away from the “bottom” and the fact that over the past 1.5 years it has taught us that pricing at marginal cost is unsustainable, as vessels start getting laid up before long” concluded Cotzias.
Source: Nikos Roussanoglou, Hellenic Shipping
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Wednesday, 21 July 10
FEWER SHIPS SOLD FOR SCRAP IN JUNE, ADDING PRESSURE TO FREIGHT RATES
The easing of vessel tonnage supply should be among the main concerns among ship owners, especially those active in dry bulk shipping. The reason is ...
Wednesday, 21 July 10
BUKIT ASAM SEALS RP900 BIO COAL DEAL
Souce: Insider Stories
Insider Stories reported that, State-Owned coal producer PT Tambang Batubara Bukit Asam Tbk (PTBA) have agreed t ...
Wednesday, 21 July 10
TUAH TURANGGA BUYS ABP US$ 15.9 MIO
Source: Insider Stories
Insider Stories reported that, Komatsu heavy equipment PT United Tractors Tbk (UNTR) through its wh ...
Tuesday, 20 July 10
CHINA'S RELIANCE ON COAL TO DROP 7% BY 2015 - XINHUA NET
Xinhua Net reported that, China's coal consumption is likely to drop to 63 percent of total energy consumption by 2015, down from 70 percent last y ...
Tuesday, 20 July 10
CHURCHILL PLANNING TO PRODUCE 35 MILLION TONNES PER ANNUM FROM ITS EAST KUTAI COAL PROJECT
According to Churchill's website, the East Kutai Coal Project is a world-class thermal coal deposit, with a JORC Mining Reserve of 961 milli ...
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- Latin American Coal - Colombia
- Coal and Oil Company - UAE
- Economic Council, Georgia
- London Commodity Brokers - England
- White Energy Company Limited
- Ambuja Cements Ltd - India
- ASAPP Information Group - India
- Miang Besar Coal Terminal - Indonesia
- Star Paper Mills Limited - India
- Billiton Holdings Pty Ltd - Australia
- Australian Commodity Traders Exchange
- Electricity Authority, New Zealand
- Samtan Co., Ltd - South Korea
- Bukit Asam (Persero) Tbk - Indonesia
- Wilmar Investment Holdings
- Sojitz Corporation - Japan
- Chamber of Mines of South Africa
- Independent Power Producers Association of India
- LBH Netherlands Bv - Netherlands
- Parry Sugars Refinery, India
- Bukit Baiduri Energy - Indonesia
- Dalmia Cement Bharat India
- VISA Power Limited - India
- Indonesian Coal Mining Association
- Mjunction Services Limited - India
- Grasim Industreis Ltd - India
- GVK Power & Infra Limited - India
- Orica Mining Services - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Attock Cement Pakistan Limited
- Sarangani Energy Corporation, Philippines
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- Electricity Generating Authority of Thailand
- Planning Commission, India
- Port Waratah Coal Services - Australia
- Singapore Mercantile Exchange
- CNBM International Corporation - China
- Ministry of Transport, Egypt
- Semirara Mining Corp, Philippines
- Metalloyd Limited - United Kingdom
- Carbofer General Trading SA - India
- Ceylon Electricity Board - Sri Lanka
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Sidhee Cement - India
- Vedanta Resources Plc - India
- Sree Jayajothi Cements Limited - India
- Coalindo Energy - Indonesia
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
- Ministry of Mines - Canada
- Gujarat Electricity Regulatory Commission - India
- Larsen & Toubro Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Deloitte Consulting - India
- Kideco Jaya Agung - Indonesia
- Australian Coal Association
- Vizag Seaport Private Limited - India
- Indogreen Group - Indonesia
- Savvy Resources Ltd - HongKong
- Bulk Trading Sa - Switzerland
- Sical Logistics Limited - India
- Thiess Contractors Indonesia
- AsiaOL BioFuels Corp., Philippines
- Maheswari Brothers Coal Limited - India
- Essar Steel Hazira Ltd - India
- The Treasury - Australian Government
- Kalimantan Lumbung Energi - Indonesia
- Oldendorff Carriers - Singapore
- Baramulti Group, Indonesia
- McConnell Dowell - Australia
- Siam City Cement - Thailand
- Energy Development Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Meralco Power Generation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Energy Link Ltd, New Zealand
- Heidelberg Cement - Germany
- Africa Commodities Group - South Africa
- Goldman Sachs - Singapore
- Iligan Light & Power Inc, Philippines
- Makarim & Taira - Indonesia
- Bhatia International Limited - India
- GMR Energy Limited - India
- Eastern Coal Council - USA
- Cement Manufacturers Association - India
- Global Coal Blending Company Limited - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Manunggal Multi Energi - Indonesia
- Pendopo Energi Batubara - Indonesia
- Thai Mozambique Logistica
- Aboitiz Power Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- SN Aboitiz Power Inc, Philippines
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- Indo Tambangraya Megah - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Energy Exchange, India
- Madhucon Powers Ltd - India
- Siam City Cement PLC, Thailand
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- Uttam Galva Steels Limited - India
- Aditya Birla Group - India
- Merrill Lynch Commodities Europe
- CIMB Investment Bank - Malaysia
- Indika Energy - Indonesia
- Central Java Power - Indonesia
- Simpson Spence & Young - Indonesia
- Bhushan Steel Limited - India
- Formosa Plastics Group - Taiwan
- Mintek Dendrill Indonesia
- Sindya Power Generating Company Private Ltd
- PTC India Limited - India
- Directorate Of Revenue Intelligence - India
- SMG Consultants - Indonesia
- Bukit Makmur.PT - Indonesia
- Coastal Gujarat Power Limited - India
- Commonwealth Bank - Australia
- European Bulk Services B.V. - Netherlands
- Gujarat Mineral Development Corp Ltd - India
- Bhoruka Overseas - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Banpu Public Company Limited - Thailand
- Straits Asia Resources Limited - Singapore
- OPG Power Generation Pvt Ltd - India
- SMC Global Power, Philippines
- Central Electricity Authority - India
- TeaM Sual Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Interocean Group of Companies - India
- Antam Resourcindo - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The State Trading Corporation of India Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Meenaskhi Energy Private Limited - India
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Parliament of New Zealand
- GAC Shipping (India) Pvt Ltd
- Binh Thuan Hamico - Vietnam
- MS Steel International - UAE
- Toyota Tsusho Corporation, Japan
- Altura Mining Limited, Indonesia
- Globalindo Alam Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Karaikal Port Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Riau Bara Harum - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Kobexindo Tractors - Indoneisa
- PNOC Exploration Corporation - Philippines
- Romanian Commodities Exchange
- Edison Trading Spa - Italy
- Ministry of Finance - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- San Jose City I Power Corp, Philippines
- Power Finance Corporation Ltd., India
- Lanco Infratech Ltd - India
- Kaltim Prima Coal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Global Business Power Corporation, Philippines
- Mercuria Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Renaissance Capital - South Africa
- Bharathi Cement Corporation - India
- Georgia Ports Authority, United States
- Kapuas Tunggal Persada - Indonesia
- Jaiprakash Power Ventures ltd
- Kumho Petrochemical, South Korea
- Salva Resources Pvt Ltd - India
- The University of Queensland
- Price Waterhouse Coopers - Russia
- Bangladesh Power Developement Board
- Orica Australia Pty. Ltd.
- Trasteel International SA, Italy
- Bank of Tokyo Mitsubishi UFJ Ltd
- Medco Energi Mining Internasional
- Tamil Nadu electricity Board
- Sakthi Sugars Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Anglo American - United Kingdom
- Standard Chartered Bank - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- PowerSource Philippines DevCo
- Borneo Indobara - Indonesia
- New Zealand Coal & Carbon
- Ind-Barath Power Infra Limited - India
- ICICI Bank Limited - India
- Global Green Power PLC Corporation, Philippines
- Petron Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Malabar Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Intertek Mineral Services - Indonesia
- Kartika Selabumi Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Wood Mackenzie - Singapore
- Jindal Steel & Power Ltd - India
- Eastern Energy - Thailand
- South Luzon Thermal Energy Corporation
- Xindia Steels Limited - India
- Marubeni Corporation - India
- Indian Oil Corporation Limited
- Vijayanagar Sugar Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Therma Luzon, Inc, Philippines
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