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.
|
|
Thursday, 20 January 11
DRY BULK MARKETS FALL SEES NO END - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Pundits indicating that the dry bulk market’s sentiment remains weak were justified, as the industry’s benchmark, the Baltic Dry Index ( ...
Wednesday, 19 January 11
DRY BULK MARKET HAS BOTTOMED OUT, AS WEATHER IN AUSTRALIA DIALS DOWN - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has finally halted its plunge, after a devastating week of yet more losses. The industry’s benchmark, the Baltic Dry Index ...
Tuesday, 18 January 11
MINISTRY SEEKS COAL FROM INDONESIA - SUNDAY OBSERVER
Sunday Observer reported that, Ministry of Power and Energy is to explore the possibilities of importing quality coal from Indonesia.
Minister Pa ...
Tuesday, 18 January 11
DRY BULK MARKET HAS BOTTOMED OUT, AS WEATHER IN AUSTRALIA DIALS DOWN - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has finally halted its plunge, after a devastating week of yet more losses. The industry’s benchmark, the Baltic Dry Index ...
Sunday, 16 January 11
STANCHART GLOBAL RESEARCH SEES COAL PRICE RISING ON SUPPLY DISRUPTION - BURSA MALAYSIA MARKET NEWS
Bursa Malaysia Market News reported that, Standard Chartered Global Research has upgraded its 2011 forecasts for global thermal coal prices based on ...
|
|
|
Showing 5421 to 5425 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Samtan Co., Ltd - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Essar Steel Hazira Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Renaissance Capital - South Africa
- Australian Commodity Traders Exchange
- Larsen & Toubro Limited - India
- Directorate Of Revenue Intelligence - India
- London Commodity Brokers - England
- Sinarmas Energy and Mining - Indonesia
- Gujarat Sidhee Cement - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Metalloyd Limited - United Kingdom
- Tata Chemicals Ltd - India
- Cement Manufacturers Association - India
- Planning Commission, India
- IEA Clean Coal Centre - UK
- Global Business Power Corporation, Philippines
- Xindia Steels Limited - India
- Bhatia International Limited - India
- Anglo American - United Kingdom
- Timah Investasi Mineral - Indoneisa
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mintek Dendrill Indonesia
- CIMB Investment Bank - Malaysia
- Wilmar Investment Holdings
- Toyota Tsusho Corporation, Japan
- Siam City Cement - Thailand
- Price Waterhouse Coopers - Russia
- Manunggal Multi Energi - Indonesia
- New Zealand Coal & Carbon
- Sakthi Sugars Limited - India
- Malabar Cements Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Thai Mozambique Logistica
- SMC Global Power, Philippines
- Economic Council, Georgia
- Banpu Public Company Limited - Thailand
- Star Paper Mills Limited - India
- Electricity Authority, New Zealand
- SMG Consultants - Indonesia
- Maheswari Brothers Coal Limited - India
- Coalindo Energy - Indonesia
- Indika Energy - Indonesia
- Trasteel International SA, Italy
- Sojitz Corporation - Japan
- Kalimantan Lumbung Energi - Indonesia
- Formosa Plastics Group - Taiwan
- Kumho Petrochemical, South Korea
- Jaiprakash Power Ventures ltd
- Meenaskhi Energy Private Limited - India
- Straits Asia Resources Limited - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- IHS Mccloskey Coal Group - USA
- Medco Energi Mining Internasional
- Binh Thuan Hamico - Vietnam
- ICICI Bank Limited - India
- Riau Bara Harum - Indonesia
- Chettinad Cement Corporation Ltd - India
- GMR Energy Limited - India
- Ministry of Transport, Egypt
- Edison Trading Spa - Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Goldman Sachs - Singapore
- Altura Mining Limited, Indonesia
- Semirara Mining and Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Orica Mining Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Jorong Barutama Greston.PT - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Intertek Mineral Services - Indonesia
- Borneo Indobara - Indonesia
- Eastern Coal Council - USA
- Kartika Selabumi Mining - Indonesia
- Energy Development Corp, Philippines
- Savvy Resources Ltd - HongKong
- San Jose City I Power Corp, Philippines
- Attock Cement Pakistan Limited
- Sarangani Energy Corporation, Philippines
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- Krishnapatnam Port Company Ltd. - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Heidelberg Cement - Germany
- Tamil Nadu electricity Board
- Cigading International Bulk Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Finance - Indonesia
- Vedanta Resources Plc - India
- Globalindo Alam Lestari - Indonesia
- Kobexindo Tractors - Indoneisa
- MS Steel International - UAE
- McConnell Dowell - Australia
- Interocean Group of Companies - India
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- European Bulk Services B.V. - Netherlands
- Madhucon Powers Ltd - India
- Eastern Energy - Thailand
- Lanco Infratech Ltd - India
- PowerSource Philippines DevCo
- Ministry of Mines - Canada
- Gujarat Electricity Regulatory Commission - India
- TNB Fuel Sdn Bhd - Malaysia
- South Luzon Thermal Energy Corporation
- Indogreen Group - Indonesia
- Parry Sugars Refinery, India
- Ind-Barath Power Infra Limited - India
- Uttam Galva Steels Limited - India
- Karaikal Port Pvt Ltd - India
- Coal and Oil Company - UAE
- TeaM Sual Corporation - Philippines
- Rio Tinto Coal - Australia
- Indo Tambangraya Megah - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Romanian Commodities Exchange
- Minerals Council of Australia
- Central Java Power - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Power Finance Corporation Ltd., India
- Billiton Holdings Pty Ltd - Australia
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- Standard Chartered Bank - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Dalmia Cement Bharat India
- Bayan Resources Tbk. - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Parliament of New Zealand
- Deloitte Consulting - India
- International Coal Ventures Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Bukit Baiduri Energy - Indonesia
- Singapore Mercantile Exchange
- Port Waratah Coal Services - Australia
- Pendopo Energi Batubara - Indonesia
- The University of Queensland
- Videocon Industries ltd - India
- Rashtriya Ispat Nigam Limited - India
- Leighton Contractors Pty Ltd - Australia
- Meralco Power Generation, Philippines
- Vizag Seaport Private Limited - India
- Chamber of Mines of South Africa
- Indian Energy Exchange, India
- Mercuria Energy - Indonesia
- Siam City Cement PLC, Thailand
- Mjunction Services Limited - India
- Electricity Generating Authority of Thailand
- Sree Jayajothi Cements Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Orica Australia Pty. Ltd.
- Merrill Lynch Commodities Europe
- Bharathi Cement Corporation - India
- Wood Mackenzie - Singapore
- Petron Corporation, Philippines
- India Bulls Power Limited - India
- Kaltim Prima Coal - Indonesia
- LBH Netherlands Bv - Netherlands
- Bhushan Steel Limited - India
- CNBM International Corporation - China
- Australian Coal Association
- Aditya Birla Group - India
- Vijayanagar Sugar Pvt Ltd - India
- Indian Oil Corporation Limited
- Karbindo Abesyapradhi - Indoneisa
- White Energy Company Limited
- Iligan Light & Power Inc, Philippines
- Bangladesh Power Developement Board
- Global Green Power PLC Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Sindya Power Generating Company Private Ltd
- Africa Commodities Group - South Africa
- Indonesian Coal Mining Association
- Barasentosa Lestari - Indonesia
- Alfred C Toepfer International GmbH - Germany
- ASAPP Information Group - India
- Ambuja Cements Ltd - India
- Carbofer General Trading SA - India
- Jindal Steel & Power Ltd - India
- Salva Resources Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Agrawal Coal Company - India
- Commonwealth Bank - Australia
- PTC India Limited - India
- Antam Resourcindo - Indonesia
- Sical Logistics Limited - India
- Energy Link Ltd, New Zealand
- Baramulti Group, Indonesia
- Coastal Gujarat Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Central Electricity Authority - India
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- OPG Power Generation Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Mercator Lines Limited - India
- VISA Power Limited - India
- Global Coal Blending Company Limited - Australia
- Marubeni Corporation - India
- GVK Power & Infra Limited - India
- Bulk Trading Sa - Switzerland
- Georgia Ports Authority, United States
- Kapuas Tunggal Persada - Indonesia
- Kepco SPC Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Simpson Spence & Young - Indonesia
- Independent Power Producers Association of India
- Ceylon Electricity Board - Sri Lanka
- SN Aboitiz Power Inc, Philippines
|
| |
| |
|
