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Thursday, 13 January 11
DRY BULK RATES HIT NEW MULTI-MONTH LOWS ON AUSTRALIAS FLOODS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 Floods in Australia’s Queensland has seriously disrupted coal shipments and together with a flood of vessels has pushed freight rates for dry bulk carriers to new multi-month lows. As a result, the Baltic Dry Index fell further yesterday to just 1,453 points, losing 1.82% on the day, while the suffering Capesize segment retreated by a further 4.77%.
The BDI has now recorded 21 straight losing sessions, losing almost 34% of its value. According to calculations from John Cotzias, head of N.Cotzias Shipping Group, in 58 sessions spanning at just less of three months, there have been only 10 days, during which the index was positive.
“The Cape index is counting 12 falling days and has overall lost in this period close to 40% of its volume. BDI is currently below levels of 5 Feb 2009 when the index was rising” said Mr. Cotzias. The market hasn’t seen such low levels since November of 2002, except of course the October 2008 market crash.
In a separate analysis, BIMCO’s shipping analyst Peter Sand said that all in all – the worst flooding in Queensland for more than 50 years “is not only bad for Australia, it's also bad for shipping as volumes on coal and iron ore go down considerably - and more vessels are free on the market putting pressure on the spot market for vessels. Average Capesize time charter rate that has been falling since end of November is now down at USD 11,266 per day trading lower every day” said Sand. He went on to state that iron ore which is exported out of West Australia is not directly affected yet even though that area has received much rain also. Lower steel production and thus also lower seaborne volumes of the two key dry bulk commodities is set to impact the market negatively over the next months. Australia is the world's largest overall coal exporter ,No. 2 in thermal coal exports after Indonesia but second to none in coking coal exports. Australia is key global coking coal supplier accounting for 60% of global seaborne exports. Within thermal coal Australia accounts for 20%. Thermal coal is used for power generation and heating, while coking coal is used in the production steel. As we have already seen, coal customers will try to find other ways to satisfy their demand for thermal coal but the real trouble is coking coal - as it is very hard to get from elsewhere. Shortage of Australian coking coal means that the worlds steel producers, primarily located in Asia, can be forced to cut the production of steel and with it also the demand for iron ore. ”A slowdown in steel production and iron ore demand is toxic to dry bulk shipping in general and for the larger vessels, Capesize and Panamax in particular. The iron ore contract prices for Q1-2011 have already been set at 7% higher than the previous quarter - but spot iron ore prices can still fluctuate and will move south on lower demand. China imports 40-50% of its coking coal from Australia. Japan, the world’s largest coking coal importer is heavily impacted also. The flooding may see contract prices for coking coal hiking significantly due to spot prices going sharply up as a result of the tight market. A part of the mechanism behind the contract prices is the spot price development. This may result in coking coal prices moving from USD 225 per tonnes in Q1-2011 up to USD 270-300 per tonnes according to several commodity analysts.
When the mines call force majeure - the steel mills must go to the spot market for coking coal - at a much higher price than the contract price for this important steel production ingredient - if they can get it at all. Alternative sources of coking coal are the US and Canada but reports are that the tight market has impacted prices also there, leading to higher commodity prices. So if coking coal spot goes up on tight supply - iron ore spot price can go down as a consequence of lower demand. A price hike in coking coal will increase the
production cost for steel - in a market already running on low margins” said BIMCO’s analyst.
So where will it go from here? “It is a string of events that cause shipping demand out of Australia to go down. Moreover the market place is plentifully supplied with tonnage so the fact that some of the commodities will be supplied from sources further away will only have very limited impact on the market. The first quarter of 2011 - do not hold great prospects for the dry bulk market - mainly because the oversupply of vessels is getting too heavy even for the "normal" inefficiencies of the market to make impact on the freight rates. The Australian situation is set to affect the market for at least a of couple months - meaning that the situation outlined above will stay a drag on the overall market and freight rates for some time” concluded Sand.
Talking about the potential overcapacity, Cotzias said that there is a total of over 3,500 dry bulk carriers on order pending until 2014 of a total of 250 million tons dwt. “These orders are split chronologically as follows: 1,854 ships are due for 2011 making up a total of 128 mil dwt, 1,106 ships due in 2012 of 87 mil dwt and 360 ships of 30 mil dwt due for 2013-2014. In total there is a massive orderbook only on the Bulkers section and we should not understate the fact that 2011 faces us with more than 55% of the total orderbook and that we should also include in this 114 orders of 4mil dwt that are “carried forward” from 2010”.
Source: Nikos Roussanoglou, Hellenic Shipping
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Thursday, 24 February 11
DRY BULK MARKET KEEPS LOSING GROUND, CAPESIZES SUFFERING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market lost further ground yesterday, as the industry’s benchmark, the Baltic Dry Index was rapidly falling, ending the session d ...
Thursday, 24 February 11
SUPRAS ARE FIXED AT CLOSE TO 10K FOR TRIPS VIA INDONESIA TO INDIA WITH COAL - FEARNBULK
Handy
After a short lived surge in rates the Atlantic market has flattened out due to too many spot vessels. The USGulf has cooled down somewhat f ...
Wednesday, 23 February 11
LIMITED AVAILABILITY OF COAL COULD TRIP MEGA POWER PLANT - THE ECONOMIC TIMES
The Economic Times, an Indian leading news paper reported that, an acute shortage of domestic coal is threatening to destabilize new power generatio ...
Wednesday, 23 February 11
DRY BULK MARKET BACK ON RETREAT MODE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The two week rise of dry bulk freight rates seems to have come to a halt this week, with the industry’s benchmark, the Baltic Dry Index (BDI) lo ...
Wednesday, 23 February 11
INDONESIA NEEDS TO REVISE EXPORT BAN ON 5600 GAD COAL EXPORT - INDUSTRY
COALspot.com - The Indonesian government may be forced to revise its 2014 timeline for the proposed ban on all low quality coal exports, Patrick Han ...
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Showing 5366 to 5370 news of total 6871 |
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- Siam City Cement PLC, Thailand
- Trasteel International SA, Italy
- Pendopo Energi Batubara - Indonesia
- Thai Mozambique Logistica
- Indonesian Coal Mining Association
- Thiess Contractors Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bhoruka Overseas - Indonesia
- Karaikal Port Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Bukit Makmur.PT - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Essar Steel Hazira Ltd - India
- Sakthi Sugars Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Indian Oil Corporation Limited
- Wilmar Investment Holdings
- Antam Resourcindo - Indonesia
- Dalmia Cement Bharat India
- Coastal Gujarat Power Limited - India
- Bhatia International Limited - India
- Edison Trading Spa - Italy
- Asmin Koalindo Tuhup - Indonesia
- San Jose City I Power Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- Parry Sugars Refinery, India
- Mjunction Services Limited - India
- Meralco Power Generation, Philippines
- Siam City Cement - Thailand
- Anglo American - United Kingdom
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- Heidelberg Cement - Germany
- Meenaskhi Energy Private Limited - India
- Maheswari Brothers Coal Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Intertek Mineral Services - Indonesia
- Kaltim Prima Coal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- OPG Power Generation Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Singapore Mercantile Exchange
- Indian Energy Exchange, India
- Holcim Trading Pte Ltd - Singapore
- Malabar Cements Ltd - India
- Tata Chemicals Ltd - India
- Borneo Indobara - Indonesia
- Goldman Sachs - Singapore
- Grasim Industreis Ltd - India
- Timah Investasi Mineral - Indoneisa
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Merrill Lynch Commodities Europe
- McConnell Dowell - Australia
- Orica Australia Pty. Ltd.
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Generating Authority of Thailand
- MS Steel International - UAE
- Sojitz Corporation - Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chettinad Cement Corporation Ltd - India
- Electricity Authority, New Zealand
- AsiaOL BioFuels Corp., Philippines
- Standard Chartered Bank - UAE
- Mintek Dendrill Indonesia
- The State Trading Corporation of India Ltd
- Kartika Selabumi Mining - Indonesia
- Mercator Lines Limited - India
- Price Waterhouse Coopers - Russia
- Kalimantan Lumbung Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Videocon Industries ltd - India
- Larsen & Toubro Limited - India
- Bangladesh Power Developement Board
- Bulk Trading Sa - Switzerland
- Riau Bara Harum - Indonesia
- Latin American Coal - Colombia
- Madhucon Powers Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kohat Cement Company Ltd. - Pakistan
- Sree Jayajothi Cements Limited - India
- The Treasury - Australian Government
- India Bulls Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Straits Asia Resources Limited - Singapore
- Krishnapatnam Port Company Ltd. - India
- SN Aboitiz Power Inc, Philippines
- GVK Power & Infra Limited - India
- Renaissance Capital - South Africa
- Australian Coal Association
- Energy Development Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Rio Tinto Coal - Australia
- Jindal Steel & Power Ltd - India
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- Global Green Power PLC Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- European Bulk Services B.V. - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Baramulti Group, Indonesia
- Carbofer General Trading SA - India
- Bharathi Cement Corporation - India
- Sindya Power Generating Company Private Ltd
- Metalloyd Limited - United Kingdom
- Energy Link Ltd, New Zealand
- Deloitte Consulting - India
- Australian Commodity Traders Exchange
- VISA Power Limited - India
- Wood Mackenzie - Singapore
- Makarim & Taira - Indonesia
- Orica Mining Services - Indonesia
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- Leighton Contractors Pty Ltd - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Aditya Birla Group - India
- Planning Commission, India
- Global Coal Blending Company Limited - Australia
- Interocean Group of Companies - India
- Gujarat Sidhee Cement - India
- SMC Global Power, Philippines
- IEA Clean Coal Centre - UK
- Vizag Seaport Private Limited - India
- Central Electricity Authority - India
- Sical Logistics Limited - India
- Manunggal Multi Energi - Indonesia
- Ambuja Cements Ltd - India
- GAC Shipping (India) Pvt Ltd
- Billiton Holdings Pty Ltd - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Star Paper Mills Limited - India
- Georgia Ports Authority, United States
- Alfred C Toepfer International GmbH - Germany
- The University of Queensland
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Bayan Resources Tbk. - Indonesia
- Vedanta Resources Plc - India
- Kepco SPC Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- LBH Netherlands Bv - Netherlands
- IHS Mccloskey Coal Group - USA
- Simpson Spence & Young - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Semirara Mining Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Uttam Galva Steels Limited - India
- Indika Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Eastern Energy - Thailand
- Banpu Public Company Limited - Thailand
- Chamber of Mines of South Africa
- CIMB Investment Bank - Malaysia
- PNOC Exploration Corporation - Philippines
- London Commodity Brokers - England
- PTC India Limited - India
- Barasentosa Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Indogreen Group - Indonesia
- South Luzon Thermal Energy Corporation
- Sarangani Energy Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Mercuria Energy - Indonesia
- ASAPP Information Group - India
- Central Java Power - Indonesia
- Salva Resources Pvt Ltd - India
- Eastern Coal Council - USA
- Ministry of Mines - Canada
- Xindia Steels Limited - India
- CNBM International Corporation - China
- Agrawal Coal Company - India
- Romanian Commodities Exchange
- Medco Energi Mining Internasional
- Minerals Council of Australia
- Ministry of Finance - Indonesia
- Bhushan Steel Limited - India
- New Zealand Coal & Carbon
- Ceylon Electricity Board - Sri Lanka
- Kideco Jaya Agung - Indonesia
- Oldendorff Carriers - Singapore
- Ministry of Transport, Egypt
- Kapuas Tunggal Persada - Indonesia
- Ind-Barath Power Infra Limited - India
- Port Waratah Coal Services - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coal and Oil Company - UAE
- Africa Commodities Group - South Africa
- Economic Council, Georgia
- Altura Mining Limited, Indonesia
- Savvy Resources Ltd - HongKong
- Therma Luzon, Inc, Philippines
- Posco Energy - South Korea
- Jaiprakash Power Ventures ltd
- PowerSource Philippines DevCo
- Attock Cement Pakistan Limited
- PetroVietnam Power Coal Import and Supply Company
- Lanco Infratech Ltd - India
- Kumho Petrochemical, South Korea
- GMR Energy Limited - India
- Global Business Power Corporation, Philippines
- Tamil Nadu electricity Board
- White Energy Company Limited
- Parliament of New Zealand
- Independent Power Producers Association of India
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