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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 carriers. As a result, the BDI (Baltic Dry Index), the industry’s benchmark, ended yesterday up by 0.64% to 787 points. Indeed, it was the smaller ship types which kept the market upwards yesterday, versus their larger counterparts which seemed to suffer from thinner demand. The Handysize segment rose by 1.36% according to the Baltic Exchange, while the Supramax one was the main gainer, with a daily increase of 2.6%. by contrast, the Capesize market was down by 0.46% to 1,516 points, while Panamaxes were also trading lower by 0.23% to 852 points.
Still, things are far from well, given the recent emergence of another negative catalyst factor for the future growth of freight rates, especially in the Capesize markets. More specifically, according to the China Iron Ore & Steel Association (CISA), 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 recent trade conference held in Beijing.
Meanwhile, according to BIMCO, dry bulk rates are set to remain suppressed during the next few weeks. Capesize Time Charter Average will remain under pressure and stay below $12,000 per day as tonnage oversupply has hit back at a time where demand is taking a small breather. Meanwhile, the report also forecasted that Panamax and Supramax freight rates are likely to develop rather flat and stay in the USD 7,000-13,000 per day interval. Handysize rates are expected to remain close to the operating break-even freight rate level at USD 6,000-8,000 per day interval.
According to BIMCO, “opportunities in the time charter market are gone for now and only the spot market remains in focus. As demand has dozed off, there is a return of pressure from the tonnage oversupply that must go away before rates will be supported by returning demand. Provided that iron ore spot prices will stay competitive/attractive as compared to the domestically mined ore within China, this should support demand, regardless of the level of stockpiles at Chinese ports and a stagnating steel price. But the lift will come in weeks rather than days.
One of the main events during 2012 will be the 19 Vale-connected +400,000 DWT VLOCs that are due for delivery. They come on top of the 5 VLOCs delivered in 2011 and another 125 new Capesize vessels that are going to be delivered in 2012. The “low” level of new Capesize deliveries comes after two mammoth years where 213 (2010) and 248 (2011) were launched and the easing inflow could be further potentially buoyed by another 60 Capesizes being demolished, assuming the 2011-standards for scrap-matured vessels are applied. Even with the extensive focus the VLOC’s have received, in the context of the sheer amount of VLOC-tonnage as a share of the total Capesize fleet, 5% remains minor.
The only seasonal factor that could support rates during the first quarter is thermal coal for heating in the northern hemisphere winter, including China. But pulling in the opposite direction is the structural overcapacity and the seasonal winter rains in Brazil and South Africa and cyclones on the west coast of Australia that delivered a significant blow to freight rates last January as massive amounts of cargo were cut off” said BIMCO in its analysis.
The organization’s Chief Shipping Analyst, Peter Sand also mentioned, that in terms of supply, «the biggest positive surprise of 2011 was the 22.2 million DWT of demolished tonnage. Of this, 67 were Capesize vessels sold for recycling primarily during the terrible first six months. Characteristics of the average Capesize vessel that left the fleet: 156,845 DWT, 27 years of age, recycled in Bangladesh at USD 509 per Ldt., leaving USD 11.5 million for the owner from taking the vessel out of active trading.
During 2011, an average of 8 million DWT was delivered into the market every single month. This was an unprecedentedly high number – something we hopefully won’t see again before the fleet is twice as big as today in 2034. If January deliveries are to give any indication into 2012, a level of little more than 6 million is relatively positive, as the pace is coming down from 2010-11. However, it’s still a historically very high level.
So far, the active fleet has grown by 1.0% in 2012, caused by delivery of 79 new vessels of 6.4 million DWT, offset by 1.6 million DWT being demolished. BIMCO expects total demolition in 2012 to come down from the 22.1 million DWT that was demolished during 2011 but to stay high, as freight rates are bound to keep pressure on earnings, pushing more over-aged tonnage over the edge. Total inflow of tonnage in 2012 is estimated to hit 78 million DWT, counterbalanced by higher than previously expected demolition of 19 million DWT.
Following the upward adjustment of the demolition potential the dry bulk fleet holds for 2012, the fleet is now set to grow a bit slower at 10% during 2012. As 2011 only saw 26 million DWT being contracted, which was the lowest level since 2002, BIMCO expects 2012 to provide more of the same on that front. Overcapacity bites – and whatever cash reserves are left from before the financial crisis broke in 2008 or leftovers from the surprisingly well 2010 is not expected to be spent on new build first installments. Not even the elevated Capesize earnings that we experienced during the 4th quarter of 2011 made owners call the shipyards to place new orders” stated Sand in his analysis.
Source: Nikos Roussanoglou, Hellenic Shipping
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Saturday, 07 January 12
COAL MARKETS SEE FALLING SPOT PRICES
COALspot.com – World’s thermal coal spot prices have slipped this week..
globalCOAL index in Newcastle Port, benchmark for Asian mark ...
Friday, 06 January 12
COAL INDIA LINKED COAL PRICES WITH INTERNATIONAL COAL PRICES
COALspot.com - Consumers of indigenous coal in India to pay International prices in the future. Coal India has recently moved from UHV pricing mecha ...
Friday, 06 January 12
CLARIDEN GLOBAL BRINGS YOU INDONESIA MINING 2012
Capitalizing Business & Investment Opportunities in an Uncertain Market.Press Release - Clariden Global brings you Indonesia Mining 2012, the dedi ...
Friday, 06 January 12
THE PANAMAX MARKET EXPERIENCED A SLOW START TO 2012 - FEARNLEYS AS
Handy
As usual after a holiday owners and charterers both try to get a feel of the market. An Armada of Supras were talking to ballast towards USG, ...
Thursday, 05 January 12
DRY BULK MARKET TAKES A PLUNGE OF LOW ACTIVITY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
As was widely expected the first days of the new year are characterized by significantly low chartering across the board of the dry bulk market, pus ...
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- Independent Power Producers Association of India
- Economic Council, Georgia
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Energy Link Ltd, New Zealand
- IEA Clean Coal Centre - UK
- Bahari Cakrawala Sebuku - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mercuria Energy - Indonesia
- Coal and Oil Company - UAE
- Chamber of Mines of South Africa
- International Coal Ventures Pvt Ltd - India
- Electricity Authority, New Zealand
- Central Java Power - Indonesia
- CIMB Investment Bank - Malaysia
- Indian Oil Corporation Limited
- Kaltim Prima Coal - Indonesia
- Indika Energy - Indonesia
- Oldendorff Carriers - Singapore
- Interocean Group of Companies - India
- Semirara Mining Corp, Philippines
- Africa Commodities Group - South Africa
- Uttam Galva Steels Limited - India
- Wood Mackenzie - Singapore
- Samtan Co., Ltd - South Korea
- Deloitte Consulting - India
- Ambuja Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- SN Aboitiz Power Inc, Philippines
- Makarim & Taira - Indonesia
- Renaissance Capital - South Africa
- GAC Shipping (India) Pvt Ltd
- Ministry of Mines - Canada
- Banpu Public Company Limited - Thailand
- Rio Tinto Coal - Australia
- CNBM International Corporation - China
- PetroVietnam Power Coal Import and Supply Company
- Ind-Barath Power Infra Limited - India
- Thiess Contractors Indonesia
- Karaikal Port Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Semirara Mining and Power Corporation, Philippines
- Romanian Commodities Exchange
- Parliament of New Zealand
- Bayan Resources Tbk. - Indonesia
- Orica Australia Pty. Ltd.
- Global Coal Blending Company Limited - Australia
- Directorate Of Revenue Intelligence - India
- The Treasury - Australian Government
- Alfred C Toepfer International GmbH - Germany
- Coastal Gujarat Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indogreen Group - Indonesia
- Sinarmas Energy and Mining - Indonesia
- PTC India Limited - India
- GVK Power & Infra Limited - India
- Bulk Trading Sa - Switzerland
- Therma Luzon, Inc, Philippines
- Attock Cement Pakistan Limited
- Aboitiz Power Corporation - Philippines
- Meralco Power Generation, Philippines
- Bhushan Steel Limited - India
- South Luzon Thermal Energy Corporation
- Ceylon Electricity Board - Sri Lanka
- ASAPP Information Group - India
- TeaM Sual Corporation - Philippines
- Lanco Infratech Ltd - India
- Binh Thuan Hamico - Vietnam
- PowerSource Philippines DevCo
- Meenaskhi Energy Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Kobexindo Tractors - Indoneisa
- Coalindo Energy - Indonesia
- Bangladesh Power Developement Board
- Planning Commission, India
- Orica Mining Services - Indonesia
- Medco Energi Mining Internasional
- Miang Besar Coal Terminal - Indonesia
- Tata Chemicals Ltd - India
- Edison Trading Spa - Italy
- Trasteel International SA, Italy
- Bhoruka Overseas - Indonesia
- Energy Development Corp, Philippines
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Essar Steel Hazira Ltd - India
- Ministry of Finance - Indonesia
- Carbofer General Trading SA - India
- PNOC Exploration Corporation - Philippines
- Mercator Lines Limited - India
- Eastern Coal Council - USA
- Xindia Steels Limited - India
- Iligan Light & Power Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- Vizag Seaport Private Limited - India
- Thai Mozambique Logistica
- London Commodity Brokers - England
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kapuas Tunggal Persada - Indonesia
- Goldman Sachs - Singapore
- Tamil Nadu electricity Board
- Timah Investasi Mineral - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Power Finance Corporation Ltd., India
- Metalloyd Limited - United Kingdom
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- Jaiprakash Power Ventures ltd
- Billiton Holdings Pty Ltd - Australia
- Baramulti Group, Indonesia
- Borneo Indobara - Indonesia
- Latin American Coal - Colombia
- Gujarat Electricity Regulatory Commission - India
- Port Waratah Coal Services - Australia
- Maheswari Brothers Coal Limited - India
- India Bulls Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- White Energy Company Limited
- Altura Mining Limited, Indonesia
- LBH Netherlands Bv - Netherlands
- Toyota Tsusho Corporation, Japan
- Videocon Industries ltd - India
- Price Waterhouse Coopers - Russia
- San Jose City I Power Corp, Philippines
- The University of Queensland
- Neyveli Lignite Corporation Ltd, - India
- Globalindo Alam Lestari - Indonesia
- VISA Power Limited - India
- Sree Jayajothi Cements Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Anglo American - United Kingdom
- Posco Energy - South Korea
- Pendopo Energi Batubara - Indonesia
- Wilmar Investment Holdings
- Australian Coal Association
- Agrawal Coal Company - India
- Marubeni Corporation - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bharathi Cement Corporation - India
- Bukit Makmur.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Petron Corporation, Philippines
- MS Steel International - UAE
- Sindya Power Generating Company Private Ltd
- Barasentosa Lestari - Indonesia
- Gujarat Sidhee Cement - India
- European Bulk Services B.V. - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Georgia Ports Authority, United States
- Vedanta Resources Plc - India
- Electricity Generating Authority of Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Salva Resources Pvt Ltd - India
- SMG Consultants - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Directorate General of MIneral and Coal - Indonesia
- GMR Energy Limited - India
- The State Trading Corporation of India Ltd
- Asmin Koalindo Tuhup - Indonesia
- Chettinad Cement Corporation Ltd - India
- Global Green Power PLC Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Indonesian Coal Mining Association
- Sojitz Corporation - Japan
- Cement Manufacturers Association - India
- Antam Resourcindo - Indonesia
- Global Business Power Corporation, Philippines
- Central Electricity Authority - India
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- Bhatia International Limited - India
- Merrill Lynch Commodities Europe
- Mjunction Services Limited - India
- Siam City Cement PLC, Thailand
- Larsen & Toubro Limited - India
- OPG Power Generation Pvt Ltd - India
- Malabar Cements Ltd - India
- Mintek Dendrill Indonesia
- Sical Logistics Limited - India
- McConnell Dowell - Australia
- Jorong Barutama Greston.PT - Indonesia
- Riau Bara Harum - Indonesia
- SMC Global Power, Philippines
- Kideco Jaya Agung - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Star Paper Mills Limited - India
- Parry Sugars Refinery, India
- Eastern Energy - Thailand
- Savvy Resources Ltd - HongKong
- Indian Energy Exchange, India
- New Zealand Coal & Carbon
- Aditya Birla Group - India
- Siam City Cement - Thailand
- AsiaOL BioFuels Corp., Philippines
- Sarangani Energy Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Grasim Industreis Ltd - India
- Australian Commodity Traders Exchange
- Kartika Selabumi Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- ICICI Bank Limited - India
- Kepco SPC Power Corporation, Philippines
- Singapore Mercantile Exchange
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