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Monday, 05 March 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU, HELLENIC SHIPPING
 An air of optimism poured in the market this week for dry bulk shippers with the Baltic Dry Index recording daily gains during the end of February by rising for the seventh straight day and closing at 771 points, up by 53 points or 7.38% from last Friday’s closing. All the indexes reflecting daily freight market rates for capesize, panamax, supramax and handysize dry bulk vessels closed in green with smaller sized vessels, supramax and handysize, showing the largest week-on-week increase, 12.54% and 10.63% respectively in contrast with a 1.40% and 0.96% rise for capesize and panamax vessels respectively. There are increasing doubts if this recent euphoria will stay since there are many newbuildings on stream and panamax ship operators are already experiencing severe pains from continuous deliveries with gloomy predictions for China’s economic growth, the main demand driver for raw materials’ transportation.
For large sized vessels, capesizes, which typically transport 150,000 ton cargoes of iron ore and coal, the market remains largely flat with the BCI gaining 21 points on a weekly basis, up by 1.4% standing at 1525 points, whereas average daily earnings are floating at levels below those for handysize units, less than $6,000/day. The over abundance of ships and the limited inquiry in the Atlantic market persist to distress capesize operators’ financial performance with earnings below breakeven levels. Spot and period chartering activity is piecemeal with a vessel of 150,000 tons rumored to have been fixed for an east coast Australian round at $7,000/day. In the period market, a 169,000 tons vessel is said to have booked from China for 4 to 7 months at $12,300/daily.
The capesize segment is still very fragile as Chinese have not fully regained their iron ore buying appetite with hefty iron ore inventories. Chinese steel production has found a small amount of support but remains relative low. The China Iron & Steel Association reported that daily crude steel production averaged approximately 1,71 million tons from February 1 to February 10. This is an increase of 2% from the 1,67mt average daily steel production occurred during January 21 to January 31, but down significantly from last year’s record 2,02mt average daily production during June 21 to June 30. Spot iron ore prices are on rise, near to $140/tonne, on a rebound of Chinese demand ahead of construction projects restarts in March. Estimations for a decline in Chinese iron ore imports for 2012 would be a highly negative development for capesize earnings. According to China Mining Association, China may import as much as 14% less of the steelmaking raw material this year as domestic production increases. Imports may be between 590 million metric tons and 650 million tons this year, while last year’s imports were 686 million tons, according to Bloomberg calculations based on General Customs data.
The panamax market appears to be in a better condition as China’s coal demand appears more supportive and average daily earnings are above $6,500, when last year vessels were earning more than doubled. Panamax operators are also facing serious issues from vessel oversupply and strong South American grain demand adds a beneficiary key factor for the healthy performance of earnings. There was said to be a healthy list of cargoes, but rates have hardly moved as charterers could pick from ships coming from the Continent, Mediterranean, the Indian Ocean and Southeast Asia. The BPI gained only 8 points from last week’s closing, up by 0.96% and standing at 844 points.
China’s thermal coal market has shown weakness amid expectations for an upward movement in March that drags vessels earnings below $10,000/day. With coal stocks remaining high at both Chinese power plants and coal ports, a Beijing-based trader said the Chinese coal market is likely to remain slack for the next couple of weeks. Coal stocks at China's key power plants totaled 74.45 million mt on February 20, able to last for about 20 days of burning, according to figures from the National Development and Reform Commission. However, the recent drops in coal stocks at coastal ports, together with the month-long overhaul of the Datong-Qinhuangdao railroad rumored to be starting in mid-March, may end the weakness in China's coal market, market sources said. Fangcheng Port in southern China's Guangxi Zhuang Autonomous Region is reported to be holding slightly over 6 million mt of coal and incoming coal vessels have to wait for about a week before they can be unloaded. "Not only Fangcheng Port, other major coal ports also see their stockyards packed," a Shandong-based trader said.
Supramax vessels, which carry about 25 percent less than panamaxes, showed the strongest performance this week with the BSI gaining 83 points, up by 12.5% from last week’s closing and standing at 745 points. Average daily earnings are above $7,700, but 50% lower than last year with the Atlantic market still being distressed. In the Pacific, the south-east Asia mineral trades, including a significant amount of nickel ore business, has been driving the recent improvement. A vessel of 55,000dwt built 2005 is said to have been fixed for a trip via Indonesia to India at $14,500 daily.
In addition, handysize units gained for a second consecutive week a sharp increase of 10.6% with the BHSI standing at 437and earnings rising to $6,630/day, almost 37% lower than previous year when they were earning $10,481/day.
The weak performance of capesize segment troubles the dry bulk industry with the BDI crawling to move at levels of one year ago and break the barrier of 1,000 points. China, the world’s second largest economy and the largest importer of iron ore and coal, has shown signs of negative economic growth with the World Bank estimating that China’s GDP annual growth will decline to 5.9% by 2021 after three decades of 10% average annual growth. The critical issue is if China would be the massive buying power for dry bulk materials, in the forthcoming years, to support and absorb the ample tonnage of ships in the market. A negative catalyst factor is China’s target to achieve iron ore self efficiency. According to the China Iron & Steel Association, China is aiming to improve its self efficiency in iron ore and continue to consolidate the steel industry in a bid to raise the output of its major steel makers by 10% within the next four years. The government expects the country’s top 10 steel manufacturers to account for 60% of the country’s steel output by 2015, Wang Xiaoqi, CISA vice chairman, said at a trade conference held in Beijing.
However, players haven’t lost their shipping confidence with mounting hopes for a firmer return of the market after the end of the first quarter of the year as Chinese steel mills are restocking on iron ore and they slowly increase steel output during the seasonally busy periods of March and April for the construction and manufacturing sectors.
Source: Maria Bertzeletou, Hellenic Shipping
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Wednesday, 07 March 12
ASSESS ASIAS POTENTIAL, DEVELOPMENTS AND APPETITE FOR SHALE AT SHALE GAS SUMMIT
Press Release - Assess Asia’s Potential, Developments and Appetite for Shale at Shale Gas Summit on 23-24 Apr, 2012 in Beijing
China is rep ...
Wednesday, 07 March 12
3RD MOZAMBIQUE COAL CONFERENCE
3rd Mozambique Coal Conference
2-4 July 2012 | Joaquim Chissano International Conference Centre , Maputo, Mozambique
http://www.immevents.com/mo ...
Wednesday, 07 March 12
DRY BULK MARKET KEEPS UP TIMID REBOUND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept its rising momentum yesterday, rising for the eighth straight session, on the back of renewed demand for smaller bulk c ...
Wednesday, 07 March 12
BUKIT ASAM EYES 39% RISE IN COAL SALES - INSIDER STORIES
Insider Stories reported that, PT Bukit Asam Tbk is scouting a 39% increase in coal sales volume to 18.66 million tons this year from last year with ...
Wednesday, 07 March 12
PETROSEA SEALS US$188 MIO CONTRACT - INSIDER STORIES
Insider Stories reported that, coal mining contractor PT Petrosea Tbk has secured a US$188 million additional contract from its affiliated firm PT S ...
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- PowerSource Philippines DevCo
- Krishnapatnam Port Company Ltd. - India
- Pendopo Energi Batubara - Indonesia
- Latin American Coal - Colombia
- Indika Energy - Indonesia
- Riau Bara Harum - Indonesia
- Commonwealth Bank - Australia
- Central Electricity Authority - India
- GN Power Mariveles Coal Plant, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Price Waterhouse Coopers - Russia
- European Bulk Services B.V. - Netherlands
- Baramulti Group, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- Indogreen Group - Indonesia
- Bhoruka Overseas - Indonesia
- Kumho Petrochemical, South Korea
- Grasim Industreis Ltd - India
- McConnell Dowell - Australia
- Sree Jayajothi Cements Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Altura Mining Limited, Indonesia
- Wood Mackenzie - Singapore
- Marubeni Corporation - India
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Karaikal Port Pvt Ltd - India
- Deloitte Consulting - India
- San Jose City I Power Corp, Philippines
- Mjunction Services Limited - India
- Kaltim Prima Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Sical Logistics Limited - India
- Wilmar Investment Holdings
- Australian Coal Association
- Makarim & Taira - Indonesia
- Formosa Plastics Group - Taiwan
- Sakthi Sugars Limited - India
- Manunggal Multi Energi - Indonesia
- Indonesian Coal Mining Association
- Aditya Birla Group - India
- Kartika Selabumi Mining - Indonesia
- Energy Link Ltd, New Zealand
- Mintek Dendrill Indonesia
- Eastern Coal Council - USA
- Savvy Resources Ltd - HongKong
- Sinarmas Energy and Mining - Indonesia
- Bukit Makmur.PT - Indonesia
- Ind-Barath Power Infra Limited - India
- Global Green Power PLC Corporation, Philippines
- Romanian Commodities Exchange
- International Coal Ventures Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Medco Energi Mining Internasional
- Africa Commodities Group - South Africa
- Lanco Infratech Ltd - India
- Trasteel International SA, Italy
- GVK Power & Infra Limited - India
- The State Trading Corporation of India Ltd
- Thai Mozambique Logistica
- Videocon Industries ltd - India
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bahari Cakrawala Sebuku - Indonesia
- Straits Asia Resources Limited - Singapore
- Coal and Oil Company - UAE
- Petrochimia International Co. Ltd.- Taiwan
- Binh Thuan Hamico - Vietnam
- Jaiprakash Power Ventures ltd
- White Energy Company Limited
- Cigading International Bulk Terminal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Samtan Co., Ltd - South Korea
- Essar Steel Hazira Ltd - India
- PTC India Limited - India
- Oldendorff Carriers - Singapore
- Standard Chartered Bank - UAE
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Transport, Egypt
- Global Coal Blending Company Limited - Australia
- LBH Netherlands Bv - Netherlands
- Ministry of Mines - Canada
- Kobexindo Tractors - Indoneisa
- Attock Cement Pakistan Limited
- Kohat Cement Company Ltd. - Pakistan
- Parliament of New Zealand
- Borneo Indobara - Indonesia
- Metalloyd Limited - United Kingdom
- Larsen & Toubro Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Coastal Gujarat Power Limited - India
- Minerals Council of Australia
- Bangladesh Power Developement Board
- SN Aboitiz Power Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Central Java Power - Indonesia
- Indo Tambangraya Megah - Indonesia
- Thiess Contractors Indonesia
- Carbofer General Trading SA - India
- Maharashtra Electricity Regulatory Commission - India
- Mercuria Energy - Indonesia
- Antam Resourcindo - Indonesia
- Uttam Galva Steels Limited - India
- Malabar Cements Ltd - India
- Energy Development Corp, Philippines
- Therma Luzon, Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- CNBM International Corporation - China
- Karbindo Abesyapradhi - Indoneisa
- South Luzon Thermal Energy Corporation
- Bhushan Steel Limited - India
- Vedanta Resources Plc - India
- Xindia Steels Limited - India
- Ministry of Finance - Indonesia
- Siam City Cement - Thailand
- TeaM Sual Corporation - Philippines
- Economic Council, Georgia
- Intertek Mineral Services - Indonesia
- Bayan Resources Tbk. - Indonesia
- GMR Energy Limited - India
- Agrawal Coal Company - India
- TNB Fuel Sdn Bhd - Malaysia
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- Bharathi Cement Corporation - India
- Dalmia Cement Bharat India
- Parry Sugars Refinery, India
- Meralco Power Generation, Philippines
- Leighton Contractors Pty Ltd - Australia
- PetroVietnam Power Coal Import and Supply Company
- PNOC Exploration Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Vizag Seaport Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Chamber of Mines of South Africa
- Anglo American - United Kingdom
- Goldman Sachs - Singapore
- ICICI Bank Limited - India
- MS Steel International - UAE
- Gujarat Electricity Regulatory Commission - India
- Bukit Baiduri Energy - Indonesia
- Global Business Power Corporation, Philippines
- Singapore Mercantile Exchange
- VISA Power Limited - India
- Independent Power Producers Association of India
- Meenaskhi Energy Private Limited - India
- Heidelberg Cement - Germany
- SMC Global Power, Philippines
- Edison Trading Spa - Italy
- Kapuas Tunggal Persada - Indonesia
- India Bulls Power Limited - India
- Banpu Public Company Limited - Thailand
- Posco Energy - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- IEA Clean Coal Centre - UK
- Tamil Nadu electricity Board
- Electricity Authority, New Zealand
- Renaissance Capital - South Africa
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- Indian Oil Corporation Limited
- Planning Commission, India
- Pipit Mutiara Jaya. PT, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Rashtriya Ispat Nigam Limited - India
- Semirara Mining Corp, Philippines
- Maheswari Brothers Coal Limited - India
- Holcim Trading Pte Ltd - Singapore
- Gujarat Sidhee Cement - India
- Salva Resources Pvt Ltd - India
- The University of Queensland
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- Bukit Asam (Persero) Tbk - Indonesia
- SMG Consultants - Indonesia
- New Zealand Coal & Carbon
- Mercator Lines Limited - India
- Interocean Group of Companies - India
- Kideco Jaya Agung - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Jindal Steel & Power Ltd - India
- Eastern Energy - Thailand
- Sarangani Energy Corporation, Philippines
- Star Paper Mills Limited - India
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- ASAPP Information Group - India
- Merrill Lynch Commodities Europe
- Australian Commodity Traders Exchange
- Bulk Trading Sa - Switzerland
- Georgia Ports Authority, United States
- Coalindo Energy - Indonesia
- Cement Manufacturers Association - India
- Alfred C Toepfer International GmbH - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Power Finance Corporation Ltd., India
- GAC Shipping (India) Pvt Ltd
- Petron Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- London Commodity Brokers - England
- Orica Australia Pty. Ltd.
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sojitz Corporation - Japan
- Orica Mining Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Bhatia International Limited - India
- Port Waratah Coal Services - Australia
- Iligan Light & Power Inc, Philippines
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