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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, 10 March 13
INDIA - INDONESIA SUPRAMAX FREIGHT : FIRM TREND
COALspot.com – This week freight market was raised and remained firm in all segments.
The BDI was up by 6.70 pct closed at 843 points, ...
Sunday, 10 March 13
INDONESIA'S FORESTRY DEPARTMENT IS TO INCREASE BORROW-TO-USE PERMITS (IJIN PINJAM PAKAI) FEE SOON
COALspot.com : Indonesia to increase borrows-to-use permit fees by 33.33 percent. The government of Indonesia is planning to increase the state&rsqu ...
Friday, 08 March 13
EKO SANTOSO BUDIANTO APPOINTED AS PRESDIENT DIRECTOR OF BERAU COAL ENERGY
COALspot.com - PT Berau Coal Energy has appointed Eko Santoso Budianto as new president director, replacing Rosan Roeslani. Berau’s extraordin ...
Friday, 08 March 13
INDONESIAN HBA UP FOR FIVE CONSECUTIVE MONTHS
COALspot.com - The Indonesian government has declared bench mark price for coal has moved upwards in March 2013.
The monthly coal reference ...
Friday, 08 March 13
DRY BULK MARKET ON A RISING TREND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has continued its rising pattern set after China opened up again for business, following the Asian New Year Holidays. As a resul ...
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- Australian Commodity Traders Exchange
- Asmin Koalindo Tuhup - Indonesia
- Independent Power Producers Association of India
- CNBM International Corporation - China
- Maharashtra Electricity Regulatory Commission - India
- Economic Council, Georgia
- Trasteel International SA, Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Georgia Ports Authority, United States
- Energy Link Ltd, New Zealand
- Ceylon Electricity Board - Sri Lanka
- Borneo Indobara - Indonesia
- Minerals Council of Australia
- Ministry of Finance - Indonesia
- Singapore Mercantile Exchange
- Semirara Mining Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Bhatia International Limited - India
- Jaiprakash Power Ventures ltd
- Sakthi Sugars Limited - India
- Larsen & Toubro Limited - India
- Grasim Industreis Ltd - India
- Metalloyd Limited - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Latin American Coal - Colombia
- Aboitiz Power Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- Binh Thuan Hamico - Vietnam
- PowerSource Philippines DevCo
- Commonwealth Bank - Australia
- Global Coal Blending Company Limited - Australia
- Malabar Cements Ltd - India
- San Jose City I Power Corp, Philippines
- VISA Power Limited - India
- Kumho Petrochemical, South Korea
- Attock Cement Pakistan Limited
- Chamber of Mines of South Africa
- The University of Queensland
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- Ministry of Transport, Egypt
- Karaikal Port Pvt Ltd - India
- ASAPP Information Group - India
- Interocean Group of Companies - India
- Kaltim Prima Coal - Indonesia
- Tata Chemicals Ltd - India
- Global Green Power PLC Corporation, Philippines
- SMG Consultants - Indonesia
- Bukit Makmur.PT - Indonesia
- New Zealand Coal & Carbon
- OPG Power Generation Pvt Ltd - India
- Indonesian Coal Mining Association
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Globalindo Alam Lestari - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- International Coal Ventures Pvt Ltd - India
- Meralco Power Generation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- GVK Power & Infra Limited - India
- Bhushan Steel Limited - India
- Siam City Cement PLC, Thailand
- Deloitte Consulting - India
- Kartika Selabumi Mining - Indonesia
- Planning Commission, India
- Xindia Steels Limited - India
- Krishnapatnam Port Company Ltd. - India
- Central Java Power - Indonesia
- Marubeni Corporation - India
- Savvy Resources Ltd - HongKong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Samtan Co., Ltd - South Korea
- Kohat Cement Company Ltd. - Pakistan
- The State Trading Corporation of India Ltd
- Videocon Industries ltd - India
- Leighton Contractors Pty Ltd - Australia
- Eastern Energy - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Ambuja Cements Ltd - India
- Uttam Galva Steels Limited - India
- Central Electricity Authority - India
- Antam Resourcindo - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Parliament of New Zealand
- Dalmia Cement Bharat India
- Vijayanagar Sugar Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Directorate General of MIneral and Coal - Indonesia
- Indogreen Group - Indonesia
- Mercuria Energy - Indonesia
- Port Waratah Coal Services - Australia
- Price Waterhouse Coopers - Russia
- Ministry of Mines - Canada
- Maheswari Brothers Coal Limited - India
- Jorong Barutama Greston.PT - Indonesia
- White Energy Company Limited
- Parry Sugars Refinery, India
- Orica Australia Pty. Ltd.
- Star Paper Mills Limited - India
- London Commodity Brokers - England
- Sojitz Corporation - Japan
- IEA Clean Coal Centre - UK
- Therma Luzon, Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Australian Coal Association
- Toyota Tsusho Corporation, Japan
- Mintek Dendrill Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Riau Bara Harum - Indonesia
- Mercator Lines Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indika Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Cigading International Bulk Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- Coastal Gujarat Power Limited - India
- Manunggal Multi Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Standard Chartered Bank - UAE
- GN Power Mariveles Coal Plant, Philippines
- India Bulls Power Limited - India
- Anglo American - United Kingdom
- Straits Asia Resources Limited - Singapore
- Kapuas Tunggal Persada - Indonesia
- Sarangani Energy Corporation, Philippines
- Rio Tinto Coal - Australia
- GMR Energy Limited - India
- IHS Mccloskey Coal Group - USA
- Global Business Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- AsiaOL BioFuels Corp., Philippines
- Billiton Holdings Pty Ltd - Australia
- Mjunction Services Limited - India
- Posco Energy - South Korea
- SMC Global Power, Philippines
- Indian Energy Exchange, India
- Cement Manufacturers Association - India
- Timah Investasi Mineral - Indoneisa
- Coal and Oil Company - UAE
- Oldendorff Carriers - Singapore
- Agrawal Coal Company - India
- Power Finance Corporation Ltd., India
- TeaM Sual Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Bayan Resources Tbk. - Indonesia
- SN Aboitiz Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Chettinad Cement Corporation Ltd - India
- Essar Steel Hazira Ltd - India
- Eastern Coal Council - USA
- Gujarat Mineral Development Corp Ltd - India
- Goldman Sachs - Singapore
- CIMB Investment Bank - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Aditya Birla Group - India
- Medco Energi Mining Internasional
- Makarim & Taira - Indonesia
- Bangladesh Power Developement Board
- Bharathi Cement Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
- Barasentosa Lestari - Indonesia
- Salva Resources Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Electricity Authority, New Zealand
- Miang Besar Coal Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Baramulti Group, Indonesia
- Indo Tambangraya Megah - Indonesia
- McConnell Dowell - Australia
- Wood Mackenzie - Singapore
- Heidelberg Cement - Germany
- Vizag Seaport Private Limited - India
- Thai Mozambique Logistica
- Rashtriya Ispat Nigam Limited - India
- Intertek Mineral Services - Indonesia
- Coalindo Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- Sical Logistics Limited - India
- Kideco Jaya Agung - Indonesia
- Sree Jayajothi Cements Limited - India
- Altura Mining Limited, Indonesia
- Formosa Plastics Group - Taiwan
- Energy Development Corp, Philippines
- Lanco Infratech Ltd - India
- Iligan Light & Power Inc, Philippines
- Bulk Trading Sa - Switzerland
- Orica Mining Services - Indonesia
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- Ind-Barath Power Infra Limited - India
- PTC India Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Indian Oil Corporation Limited
- Gujarat Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Carbofer General Trading SA - India
- Tamil Nadu electricity Board
- Vedanta Resources Plc - India
- Edison Trading Spa - Italy
- Simpson Spence & Young - Indonesia
- Africa Commodities Group - South Africa
- Romanian Commodities Exchange
- Madhucon Powers Ltd - India
- Thiess Contractors Indonesia
- Renaissance Capital - South Africa
- The Treasury - Australian Government
- Gujarat Sidhee Cement - India
- Banpu Public Company Limited - Thailand
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