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Sunday, 23 June 13
SHIP PRICES NOT FOLLOWING FREIGHT MARKET FUNDAMENTALS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
 Although it's been the case in many occasions in the past, it appears that ship prices haven't been quite following freight market fundamentals, in terms of future prospects. According to the latest report from shipbroker Intermodal, over the past couple of months we have seen a drastic decoupling of the SnP markets from the reality of the freight markets. "This slowly developing two-tier structure is nothing new, however the widening gap between the two has recently been of much concern to most market players. But why is this gap developing and more crucially, is it sustainable?", wondered Intermodal's Research Analyst, Mr. George Lazaridis.
Attempting to explain this odd situation, he notes that "in the past any widening gap was more difficult to sustain as the fewer amount of asset players in the market left for a market environment with considerably less speculation. During the 2000’s boom this all changed rapidly as the financial markets started to heavily influence the way shipping people made investment decisions. The world of derivatives and complex financial instruments entered our world and had a profound effect, shifting our perspective of the ship itself. It no longer has the image of an industrial machine for transportation, but rather an exchangeable commodity that through time will fluctuate wildly in value. Fast forwarding to where we are today it seems that a part of that legacy has caused the creation of a more forward looking investor who is able to see the benefits of acting in a “bad market” in the hope that he has read the market correctly and that through the life of his investment the average return will be sufficiently lucrative", he said in the weekly report.
Lazaridis went on by noting that "looking at some of the latest deals that we have seen, is there any evidence that these have been done through valid analysis of the current market fundamentals or is it just wildly speculative? The answer to this is that we don’t know. With the market fluctuating in such a volatile way and so unpredictable at times, it seems to be that each investor has different beliefs as to where the market will be over the next couple of months. Its majority rule here and as the lack in serious sellers has kept buyers on their toes, prices have inevitably gone up as each interested buyer outbids the other in order to secure one of the few new sales candidates circulating the market", he said.
According to the analyst, "the nature of all these buyers has been the main driver of the recent price trends. Most upscale European buyers that would typically look at very modern units had been fairly inactive during most of 2012. Their sudden interest created a flurry of activity and over the past 5 months pushed prices up by between 15-20% for vessels of less than 10 years old across most size segments. Panamaxes and Supramaxes have been the ones drawing the most attention and as such have shown the biggest rise in prices", Lazaridis said.
Concluding his argument, he pointed out that "going back to the point of decoupling markets, freight rates have followed a wildly different course. Spot Rates are currently trending at considerably lower than the average seen during 2012 (in the case of Panamaxes that’s around 3% lower) and we haven’t even gone through the summer lull period yet.
FFA’s are also supporting this point further, with expectation for forward rates being soft for a considerable period into the future, although there has been a small upward correction over the past weeks. Even in the case where one would believe of an improving market within 2014 and 2015, there seems to be no reasonable basis for paying an extra premium this early in the cycle and in effect also having to suffer through several months of poor rates, while even the possibility for a recovery being so fragile and there is a constant overshadowing threat that further new ordering could take place and once again engulf the market with excess tonnage. Bets are being placed but I’m not sure that these current premiums will be sustained throughout 2013. As things hold in certain markets such as that of modern panamaxes, it seems to be a better option to sit on the sidelines and act coy in hope that the flock of current buyers will take their pickings and leave the markets once again to drop back down to levels that make more business sense", he concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Wednesday, 18 September 13
DRY BULK MARKET CONTINUED TO ADVANCE - INTERMODAL
Chartering (Wet: Stable- / Dry: Firm+ )
The Dry Bulk market continued to advance at a very fast pace, with the BDI closing off the week north ...
Tuesday, 17 September 13
BUMA PRODUCED 3.57 PERCENT MORE COAL IN AUGUST
COALspot.com: BUMA has removed totaled 25.20 million bcm of overburden to produce 2.90 million tons coal in August 2013. BUMI produced 3.07 percent ...
Tuesday, 17 September 13
NEWCASTLE PORT SHIPPED ABOUT 27 PERCENT MORE COAL WEEK ON WEEK
COALspot.com: Power plant and semi-soft coking coal shipments from Australia's Newcastle port up 27.26 per cent week on week to 3.01 million mt for ...
Tuesday, 17 September 13
TAIPOWER INVITES BIDS FOR SUPPLY OF SUB-BITUMINOUS COAL
COALspot.com - Taiwan Power Company intends to procure 1.050 million tons of sub-bituminous coal for Taipower thermal power plant through open tende ...
Tuesday, 17 September 13
ORPHEUS SECURES SIGNIFICANT INFRASTRUCTURE DEAL THROUGH ACQUISITION OF SOUTH KALIMANTAN PORT CAPACITY
COALspot.com : Orpheus Energy Limited (ASX: OEG) of Australia has today announced that, it has executed a binding agreement with the proprietor of S ...
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Showing 4116 to 4120 news of total 6871 |
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- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Energy Link Ltd, New Zealand
- Kepco SPC Power Corporation, Philippines
- Bangladesh Power Developement Board
- SMG Consultants - Indonesia
- Interocean Group of Companies - India
- Aboitiz Power Corporation - Philippines
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
- Grasim Industreis Ltd - India
- Wood Mackenzie - Singapore
- Rashtriya Ispat Nigam Limited - India
- IHS Mccloskey Coal Group - USA
- Meralco Power Generation, Philippines
- Kaltim Prima Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Australian Coal Association
- Cement Manufacturers Association - India
- Ministry of Finance - Indonesia
- Sakthi Sugars Limited - India
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- New Zealand Coal & Carbon
- Videocon Industries ltd - India
- Lanco Infratech Ltd - India
- GVK Power & Infra Limited - India
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Global Business Power Corporation, Philippines
- Mintek Dendrill Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- The Treasury - Australian Government
- Antam Resourcindo - Indonesia
- Port Waratah Coal Services - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Directorate Of Revenue Intelligence - India
- Leighton Contractors Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Energy Development Corp, Philippines
- Parry Sugars Refinery, India
- Krishnapatnam Port Company Ltd. - India
- Indian Oil Corporation Limited
- Gujarat Electricity Regulatory Commission - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Attock Cement Pakistan Limited
- Star Paper Mills Limited - India
- The University of Queensland
- Samtan Co., Ltd - South Korea
- Binh Thuan Hamico - Vietnam
- Tamil Nadu electricity Board
- Chettinad Cement Corporation Ltd - India
- Marubeni Corporation - India
- Wilmar Investment Holdings
- Kobexindo Tractors - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Directorate General of MIneral and Coal - Indonesia
- San Jose City I Power Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Thiess Contractors Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Mercator Lines Limited - India
- Deloitte Consulting - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- South Luzon Thermal Energy Corporation
- Power Finance Corporation Ltd., India
- Ministry of Transport, Egypt
- Indika Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- LBH Netherlands Bv - Netherlands
- White Energy Company Limited
- Indogreen Group - Indonesia
- Bayan Resources Tbk. - Indonesia
- Sojitz Corporation - Japan
- Australian Commodity Traders Exchange
- SMC Global Power, Philippines
- GMR Energy Limited - India
- VISA Power Limited - India
- Borneo Indobara - Indonesia
- Vedanta Resources Plc - India
- Bulk Trading Sa - Switzerland
- CNBM International Corporation - China
- Oldendorff Carriers - Singapore
- Chamber of Mines of South Africa
- PetroVietnam Power Coal Import and Supply Company
- AsiaOL BioFuels Corp., Philippines
- Global Coal Blending Company Limited - Australia
- Formosa Plastics Group - Taiwan
- Essar Steel Hazira Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Xindia Steels Limited - India
- Thai Mozambique Logistica
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Central Java Power - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- International Coal Ventures Pvt Ltd - India
- Sical Logistics Limited - India
- Sinarmas Energy and Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- GN Power Mariveles Coal Plant, Philippines
- Holcim Trading Pte Ltd - Singapore
- McConnell Dowell - Australia
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- Jindal Steel & Power Ltd - India
- Pendopo Energi Batubara - Indonesia
- Cigading International Bulk Terminal - Indonesia
- PowerSource Philippines DevCo
- Minerals Council of Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The State Trading Corporation of India Ltd
- OPG Power Generation Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- Meenaskhi Energy Private Limited - India
- Manunggal Multi Energi - Indonesia
- Therma Luzon, Inc, Philippines
- Altura Mining Limited, Indonesia
- MS Steel International - UAE
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- Bhushan Steel Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Ind-Barath Power Infra Limited - India
- Orica Australia Pty. Ltd.
- Price Waterhouse Coopers - Russia
- Intertek Mineral Services - Indonesia
- Ministry of Mines - Canada
- Commonwealth Bank - Australia
- Tata Chemicals Ltd - India
- Vizag Seaport Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- PTC India Limited - India
- Malabar Cements Ltd - India
- Eastern Energy - Thailand
- Petron Corporation, Philippines
- Independent Power Producers Association of India
- Bukit Makmur.PT - Indonesia
- Siam City Cement PLC, Thailand
- Banpu Public Company Limited - Thailand
- Straits Asia Resources Limited - Singapore
- Posco Energy - South Korea
- Mercuria Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Kartika Selabumi Mining - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Agrawal Coal Company - India
- Carbofer General Trading SA - India
- Planning Commission, India
- Trasteel International SA, Italy
- Baramulti Group, Indonesia
- Riau Bara Harum - Indonesia
- Madhucon Powers Ltd - India
- Georgia Ports Authority, United States
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- Karbindo Abesyapradhi - Indoneisa
- European Bulk Services B.V. - Netherlands
- London Commodity Brokers - England
- Electricity Generating Authority of Thailand
- Parliament of New Zealand
- Indonesian Coal Mining Association
- Rio Tinto Coal - Australia
- Eastern Coal Council - USA
- Edison Trading Spa - Italy
- Kapuas Tunggal Persada - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Goldman Sachs - Singapore
- Global Green Power PLC Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ceylon Electricity Board - Sri Lanka
- Barasentosa Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- ICICI Bank Limited - India
- Standard Chartered Bank - UAE
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Salva Resources Pvt Ltd - India
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Bhatia International Limited - India
- Simpson Spence & Young - Indonesia
- Heidelberg Cement - Germany
- India Bulls Power Limited - India
- Semirara Mining Corp, Philippines
- Africa Commodities Group - South Africa
- Iligan Light & Power Inc, Philippines
- Coal and Oil Company - UAE
- Latin American Coal - Colombia
- Dalmia Cement Bharat India
- CIMB Investment Bank - Malaysia
- Singapore Mercantile Exchange
- Neyveli Lignite Corporation Ltd, - India
- Mjunction Services Limited - India
- Uttam Galva Steels Limited - India
- Electricity Authority, New Zealand
- Medco Energi Mining Internasional
- Renaissance Capital - South Africa
- Aditya Birla Group - India
- Makarim & Taira - Indonesia
- Orica Mining Services - Indonesia
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