We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Sunday, 23 January 11
THE AVERAGE CHARTER RATE FOR CAPE SIZE VESSELS WAS AT $ 8,859 PD ALMOST CLOSE TO 2008 LOWS - VISTAAR
COALspot.com - The BDI continues to drop and saw a drop of about 5 pct this week closing at 1,370 points. “ In May 2010 the BDI touched ...
Saturday, 22 January 11
POSSIBLE COAL EXPORT RESTRICTIONS ON INDONESIA UNLIKELY TO AFFECT CHURCHILL MINING - PROACTIVE INVESTORS
Proactive Investors reported that, Churchill Mining moved to reassure investors after a fall in its share price, stating that from talks with the au ...
Thursday, 20 January 11
INDONESIA MAY BAN LOW-QUALITY COAL EXPORTS FROM 2014 - BLOOMBERG
Bloomberg reported that, The Indonesian government plans to ban exports of coal with an energy value of less than 5,600 kilocalories a kilogram star ...
Thursday, 20 January 11
SUPRAS ARE DOING USD 7- 8K FOR INDONESIA-INDIA - FEARNBULK
Handy
Negative sentiment for forward positions in the Atlantic market due to lack of cargo availability and too many ballasters from the East. Con ...
Thursday, 20 January 11
ITMG TARGETS TO PRODUCE 25 MILLION TONS OF COAL THIS YEAR - BISNIS INDONESIA
Bisnis Indonesia reported that, Coal producer PT Indo Tambangraya Megah Tbk (ITMG) targets to produce 25 million tons of coal this year, a 13. ...
|
|
|
Showing 5416 to 5420 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Carbofer General Trading SA - India
- ASAPP Information Group - India
- SN Aboitiz Power Inc, Philippines
- Ministry of Finance - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Independent Power Producers Association of India
- TeaM Sual Corporation - Philippines
- Baramulti Group, Indonesia
- Parliament of New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Sakthi Sugars Limited - India
- PTC India Limited - India
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- Vedanta Resources Plc - India
- Kobexindo Tractors - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Bukit Asam (Persero) Tbk - Indonesia
- GAC Shipping (India) Pvt Ltd
- Coastal Gujarat Power Limited - India
- Barasentosa Lestari - Indonesia
- Energy Development Corp, Philippines
- Meralco Power Generation, Philippines
- VISA Power Limited - India
- Aditya Birla Group - India
- The University of Queensland
- Directorate Of Revenue Intelligence - India
- SMC Global Power, Philippines
- Vizag Seaport Private Limited - India
- Agrawal Coal Company - India
- Ambuja Cements Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petron Corporation, Philippines
- Mintek Dendrill Indonesia
- Lanco Infratech Ltd - India
- Energy Link Ltd, New Zealand
- AsiaOL BioFuels Corp., Philippines
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Mineral Development Corp Ltd - India
- Renaissance Capital - South Africa
- GN Power Mariveles Coal Plant, Philippines
- Bayan Resources Tbk. - Indonesia
- Mercuria Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Star Paper Mills Limited - India
- Chettinad Cement Corporation Ltd - India
- Bhoruka Overseas - Indonesia
- Economic Council, Georgia
- Coalindo Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Tata Chemicals Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Central Java Power - Indonesia
- Kumho Petrochemical, South Korea
- Savvy Resources Ltd - HongKong
- Riau Bara Harum - Indonesia
- Manunggal Multi Energi - Indonesia
- Power Finance Corporation Ltd., India
- Metalloyd Limited - United Kingdom
- LBH Netherlands Bv - Netherlands
- Wilmar Investment Holdings
- Australian Commodity Traders Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- Makarim & Taira - Indonesia
- New Zealand Coal & Carbon
- Uttam Galva Steels Limited - India
- Medco Energi Mining Internasional
- Australian Coal Association
- Global Green Power PLC Corporation, Philippines
- Bharathi Cement Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Edison Trading Spa - Italy
- Goldman Sachs - Singapore
- Global Business Power Corporation, Philippines
- Electricity Authority, New Zealand
- Thiess Contractors Indonesia
- Straits Asia Resources Limited - Singapore
- Malabar Cements Ltd - India
- Electricity Generating Authority of Thailand
- SMG Consultants - Indonesia
- Maheswari Brothers Coal Limited - India
- Latin American Coal - Colombia
- Gujarat Sidhee Cement - India
- GVK Power & Infra Limited - India
- Sojitz Corporation - Japan
- Siam City Cement PLC, Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mercator Lines Limited - India
- Cigading International Bulk Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Romanian Commodities Exchange
- Simpson Spence & Young - Indonesia
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- Samtan Co., Ltd - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- London Commodity Brokers - England
- Global Coal Blending Company Limited - Australia
- Pendopo Energi Batubara - Indonesia
- Videocon Industries ltd - India
- Deloitte Consulting - India
- Attock Cement Pakistan Limited
- Madhucon Powers Ltd - India
- Bangladesh Power Developement Board
- Wood Mackenzie - Singapore
- PNOC Exploration Corporation - Philippines
- Africa Commodities Group - South Africa
- The State Trading Corporation of India Ltd
- Eastern Energy - Thailand
- Bhushan Steel Limited - India
- Salva Resources Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- Anglo American - United Kingdom
- PetroVietnam Power Coal Import and Supply Company
- Oldendorff Carriers - Singapore
- CIMB Investment Bank - Malaysia
- Jindal Steel & Power Ltd - India
- IEA Clean Coal Centre - UK
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mjunction Services Limited - India
- Indian Oil Corporation Limited
- Kaltim Prima Coal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Altura Mining Limited, Indonesia
- Cement Manufacturers Association - India
- MS Steel International - UAE
- IHS Mccloskey Coal Group - USA
- McConnell Dowell - Australia
- Bukit Makmur.PT - Indonesia
- Heidelberg Cement - Germany
- Essar Steel Hazira Ltd - India
- Indonesian Coal Mining Association
- Formosa Plastics Group - Taiwan
- Orica Mining Services - Indonesia
- Merrill Lynch Commodities Europe
- Port Waratah Coal Services - Australia
- Marubeni Corporation - India
- Miang Besar Coal Terminal - Indonesia
- CNBM International Corporation - China
- Dalmia Cement Bharat India
- Ministry of Transport, Egypt
- Trasteel International SA, Italy
- Central Electricity Authority - India
- Kapuas Tunggal Persada - Indonesia
- Posco Energy - South Korea
- Antam Resourcindo - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Semirara Mining Corp, Philippines
- Rio Tinto Coal - Australia
- OPG Power Generation Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Eastern Coal Council - USA
- Karaikal Port Pvt Ltd - India
- Parry Sugars Refinery, India
- Ind-Barath Power Infra Limited - India
- Larsen & Toubro Limited - India
- Aboitiz Power Corporation - Philippines
- Minerals Council of Australia
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- Singapore Mercantile Exchange
- Indika Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Planning Commission, India
- Banpu Public Company Limited - Thailand
- Binh Thuan Hamico - Vietnam
- European Bulk Services B.V. - Netherlands
- Sree Jayajothi Cements Limited - India
- Thai Mozambique Logistica
- Price Waterhouse Coopers - Russia
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Bhatia International Limited - India
- Tamil Nadu electricity Board
- Grasim Industreis Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Krishnapatnam Port Company Ltd. - India
- South Luzon Thermal Energy Corporation
- Alfred C Toepfer International GmbH - Germany
- Bukit Baiduri Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- ICICI Bank Limited - India
- Georgia Ports Authority, United States
- Standard Chartered Bank - UAE
- India Bulls Power Limited - India
- Jaiprakash Power Ventures ltd
- GMR Energy Limited - India
- International Coal Ventures Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Kepco SPC Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Bahari Cakrawala Sebuku - Indonesia
- White Energy Company Limited
- TNB Fuel Sdn Bhd - Malaysia
- Commonwealth Bank - Australia
- Kideco Jaya Agung - Indonesia
- Globalindo Alam Lestari - Indonesia
- San Jose City I Power Corp, Philippines
- Sical Logistics Limited - India
- Coal and Oil Company - UAE
- Borneo Indobara - Indonesia
- Xindia Steels Limited - India
- Chamber of Mines of South Africa
- Indian Energy Exchange, India
- Indo Tambangraya Megah - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Holcim Trading Pte Ltd - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
|
| |
| |
|
