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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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Sunday, 07 July 13
COAL PRICES REMAIN UNDER PRESSURE
COALspot.com – Coal swaps for the year 2014 indicate that, the pressure on coal prices will continue at least until next year. Ave ...
Friday, 05 July 13
THE DRY BULK MARKET IS GOING FROM STRENGTH TO STRENGTH - INTERMODAL
The Capesize sector has been one that has gone through a wild rollercoaster of emotions this past decade, ranging from the exuberance witnessed duri ...
Thursday, 04 July 13
CHALLENGER SIGNS FORMAL EXCLUSIVE MINING AND MARKETING AGREEMENT FOR ABBR PROJECT IN CENTRAL KALIMANTAN
COALspot.com - Challenger Deep Resources Corp., through its subsidiary PT Bestindo Energy has signed the formal exclusive Mining and Marketing agree ...
Thursday, 04 July 13
ASX LISTED QBL TO ACQUIRE INTERESTS IN MOZAMBIQUE COAL EXPLORATION LICENSES
- QBL to acquire interests in two Mozambique exploration licences prospective for coal
- Licenses located in the highly prospective Zambezi basin, ...
Thursday, 04 July 13
HANDY : INDO/CHINA, CHARTERERS RATING AROUND US$ 10,000 - FEARNLEYS AS
Handy
The Feast market firmed slightly up as mid-July cargos entered the market, but charterers seems not in hurry to cover them and looking for ch ...
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- Asmin Koalindo Tuhup - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Lanco Infratech Ltd - India
- New Zealand Coal & Carbon
- Eastern Coal Council - USA
- Leighton Contractors Pty Ltd - Australia
- Marubeni Corporation - India
- Power Finance Corporation Ltd., India
- Thai Mozambique Logistica
- Indonesian Coal Mining Association
- Latin American Coal - Colombia
- Independent Power Producers Association of India
- Gujarat Mineral Development Corp Ltd - India
- Renaissance Capital - South Africa
- Commonwealth Bank - Australia
- Neyveli Lignite Corporation Ltd, - India
- Energy Link Ltd, New Zealand
- Ind-Barath Power Infra Limited - India
- Borneo Indobara - Indonesia
- Petron Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Formosa Plastics Group - Taiwan
- SMG Consultants - Indonesia
- Intertek Mineral Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Africa Commodities Group - South Africa
- Siam City Cement - Thailand
- Standard Chartered Bank - UAE
- Manunggal Multi Energi - Indonesia
- PTC India Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Trasteel International SA, Italy
- Ministry of Mines - Canada
- Sakthi Sugars Limited - India
- Indian Oil Corporation Limited
- Grasim Industreis Ltd - India
- Agrawal Coal Company - India
- Dalmia Cement Bharat India
- Larsen & Toubro Limited - India
- Simpson Spence & Young - Indonesia
- Uttam Galva Steels Limited - India
- Bulk Trading Sa - Switzerland
- Sindya Power Generating Company Private Ltd
- Directorate Of Revenue Intelligence - India
- Baramulti Group, Indonesia
- San Jose City I Power Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Electricity Authority, New Zealand
- Central Electricity Authority - India
- South Luzon Thermal Energy Corporation
- Orica Australia Pty. Ltd.
- Alfred C Toepfer International GmbH - Germany
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- Sical Logistics Limited - India
- Therma Luzon, Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Aboitiz Power Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Orica Mining Services - Indonesia
- Tamil Nadu electricity Board
- Madhucon Powers Ltd - India
- Bayan Resources Tbk. - Indonesia
- Heidelberg Cement - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- London Commodity Brokers - England
- Bharathi Cement Corporation - India
- Altura Mining Limited, Indonesia
- The State Trading Corporation of India Ltd
- MS Steel International - UAE
- The University of Queensland
- Bhatia International Limited - India
- Cigading International Bulk Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- Economic Council, Georgia
- Siam City Cement PLC, Thailand
- Georgia Ports Authority, United States
- Price Waterhouse Coopers - Russia
- Kartika Selabumi Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- Central Java Power - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- International Coal Ventures Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GVK Power & Infra Limited - India
- Metalloyd Limited - United Kingdom
- Straits Asia Resources Limited - Singapore
- Sree Jayajothi Cements Limited - India
- Iligan Light & Power Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Electricity Generating Authority of Thailand
- Krishnapatnam Port Company Ltd. - India
- Pendopo Energi Batubara - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Videocon Industries ltd - India
- Gujarat Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Bukit Makmur.PT - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Transport, Egypt
- Global Coal Blending Company Limited - Australia
- Malabar Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Eastern Energy - Thailand
- McConnell Dowell - Australia
- Medco Energi Mining Internasional
- Maheswari Brothers Coal Limited - India
- Ambuja Cements Ltd - India
- India Bulls Power Limited - India
- Globalindo Alam Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Global Green Power PLC Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Vedanta Resources Plc - India
- TeaM Sual Corporation - Philippines
- Semirara Mining Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Edison Trading Spa - Italy
- Makarim & Taira - Indonesia
- Australian Coal Association
- Karaikal Port Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Mintek Dendrill Indonesia
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- Jindal Steel & Power Ltd - India
- European Bulk Services B.V. - Netherlands
- Indika Energy - Indonesia
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Singapore Mercantile Exchange
- Timah Investasi Mineral - Indoneisa
- Bangladesh Power Developement Board
- Offshore Bulk Terminal Pte Ltd, Singapore
- Posco Energy - South Korea
- Sinarmas Energy and Mining - Indonesia
- Carbofer General Trading SA - India
- Meenaskhi Energy Private Limited - India
- Gujarat Sidhee Cement - India
- Meralco Power Generation, Philippines
- Coalindo Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Antam Resourcindo - Indonesia
- Cement Manufacturers Association - India
- AsiaOL BioFuels Corp., Philippines
- Indogreen Group - Indonesia
- Wilmar Investment Holdings
- Coastal Gujarat Power Limited - India
- Parliament of New Zealand
- Attock Cement Pakistan Limited
- Bukit Asam (Persero) Tbk - Indonesia
- ASAPP Information Group - India
- Samtan Co., Ltd - South Korea
- Chamber of Mines of South Africa
- Aditya Birla Group - India
- Bhoruka Overseas - Indonesia
- PNOC Exploration Corporation - Philippines
- Planning Commission, India
- Riau Bara Harum - Indonesia
- CIMB Investment Bank - Malaysia
- Banpu Public Company Limited - Thailand
- Oldendorff Carriers - Singapore
- Energy Development Corp, Philippines
- Merrill Lynch Commodities Europe
- White Energy Company Limited
- Global Business Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kohat Cement Company Ltd. - Pakistan
- Rio Tinto Coal - Australia
- Minerals Council of Australia
- Semirara Mining and Power Corporation, Philippines
- GMR Energy Limited - India
- Xindia Steels Limited - India
- Bhushan Steel Limited - India
- Essar Steel Hazira Ltd - India
- Kumho Petrochemical, South Korea
- SMC Global Power, Philippines
- Mercator Lines Limited - India
- PowerSource Philippines DevCo
- Australian Commodity Traders Exchange
- Sojitz Corporation - Japan
- Sarangani Energy Corporation, Philippines
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- The Treasury - Australian Government
- ICICI Bank Limited - India
- IEA Clean Coal Centre - UK
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- Kepco SPC Power Corporation, Philippines
- Goldman Sachs - Singapore
- IHS Mccloskey Coal Group - USA
- Kapuas Tunggal Persada - Indonesia
- Interocean Group of Companies - India
- Indian Energy Exchange, India
- Mjunction Services Limited - India
- Ministry of Finance - Indonesia
- Savvy Resources Ltd - HongKong
- GN Power Mariveles Coal Plant, Philippines
- Port Waratah Coal Services - Australia
- Directorate General of MIneral and Coal - Indonesia
- Star Paper Mills Limited - India
- Thiess Contractors Indonesia
- Rashtriya Ispat Nigam Limited - India
- Deloitte Consulting - India
- Vizag Seaport Private Limited - India
- Kideco Jaya Agung - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Anglo American - United Kingdom
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