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Thursday, 12 September 13
CAPESIZE MARKET WILL BECOME EVEN TIGHTER - JEFFREY LANDSBERG
COALspot.com : While it is no secret that current capesize availability has become tight and has caused capesize rates to surge, availability is set to become even tighter in the near future once Drummond coal cargoes return to the market (when the strike is resolved) and also due to the very large amount of Brazilian iron ore cargoes that have continued to surface. So far this week, 10 capesize vessels have been chartered to haul Brazilian iron ore cargoes. This is a very large amount, and already exceeds the robust 9 capesize vessels that were chartered to haul Brazilian iron ore cargoes during all of last week.
The last time that 10 or more capesize vessels were chartered to haul iron ore cargoes in a single week was the Week Ending November 16, 2012. Chinese demand for imported iron ore is currently very strong, which is helping capesize rates to surge. However, the capesize market will again benefit from the current level of activity as spot capesize availability will find itself even tighter in the near future. It is extremely encouraging for the capesize market that so many capesize vessels have recently been chartered for long-haul Brazil to China iron ore exports. In addition, Atlantic basin spot capesize availability will become even more tight whenever the Drummond coal strike officially comes to an end.
For the capesize market, near term prospects remain encouraging. There will be fluctuations whenever there are brief dips in Chinese demand, but overall we believe in the weeks and months to come there will be days when average daily capesize rates easily increase by over $3,000 in a single day. That’s the beauty of dry bulk shipping. Demand for vessels is quite inelastic and not very responsive to changes in prices. When a charterer needs a vessel, he (she) needs a vessel. And when spot vessel availability is tight, an environment is created where freight rates are prone to large increases. With some many capesize vessels recently being chartered to haul long-haul Brazilian iron ore cargoes -- and with an increase in Drummond coal cargoes being poised to re-emerge in the market at some point like in the near future -- the already tight capesize market will become even tighter.
By: Jeffrey Landsberg | Managing Director, Commodore Research & Consultancy
About Commodore Research & Consultancy
Commodore Research & Consultancy is an independent New York City-based consultancy that focuses on the global demand, supply, and seaborne trade of industrial and agricultural commodities, with a particular focus on China. Commodore Research & Consultancy's analysts handle a wide variety of consulting requests and custom reports. Commodore Research & Consultancy also offers two standard report subscriptions (Dry Bulk Report Subscription and China Report Subscription).
Views expressed herein are personal views of the author and not that of COALspot.com. We welcome article submissions from experts in the areas of coal, mining, shipping, etc. To submit your articles please click here
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Tuesday, 22 October 13
NEWCASTLE PORT SERVED 38 OCEAN GOING VESSELS IN A WEEK
COALspot.com: Power plant and semi-soft coking coal shipments from Australia's Newcastle port up 0.64 per cent week on week to 3.21 million mt for ...
Tuesday, 22 October 13
KOWEPO INVITED BIDS FOR MULTI GRADE COAL
COALspot.com - Korea Western Power Co., Ltd. (KOWEPO), a Korean electricity generator intends to procure 240,000 tons of multi grade coal for its Ta ...
Monday, 21 October 13
SOUTH CHINA COAL SWAP FOR 2014 DELIVERIES SHOW A POSITIVE TREND
COALspot.com : API 8 CFR South China Coal swaps for average Q4 2013 delivery fell 0.02 percept M-M on Friday 18 October 2013. The CFR South China Co ...
Sunday, 20 October 13
Q3'14 SUB-BIT INDO COAL SWAP CLOSED AT $ 61.80 PMT W/E 18 OCT' 13
COALspot.com – Sub-Bit Indonesia coal swap (FOB ) for average Q4 2013 delivery fell 0.93 percept month on month on Friday 18 October 201 ...
Saturday, 19 October 13
NICKEL ORE SHIPMENTS KEEP SUPRAMAX CHARTER RATES STEADY - CAPT. REDDY
COALspot.com : The futures freight market continued to go down which was reflected in the physical markets as well.
The BDI continued to be soft ...
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- Standard Chartered Bank - UAE
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- Bulk Trading Sa - Switzerland
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- Ind-Barath Power Infra Limited - India
- Interocean Group of Companies - India
- Australian Coal Association
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- Australian Commodity Traders Exchange
- Jindal Steel & Power Ltd - India
- Global Green Power PLC Corporation, Philippines
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Miang Besar Coal Terminal - Indonesia
- Maheswari Brothers Coal Limited - India
- Sinarmas Energy and Mining - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Aditya Birla Group - India
- Power Finance Corporation Ltd., India
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- Metalloyd Limited - United Kingdom
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- Pipit Mutiara Jaya. PT, Indonesia
- Global Business Power Corporation, Philippines
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- Altura Mining Limited, Indonesia
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- SN Aboitiz Power Inc, Philippines
- Indian Energy Exchange, India
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- New Zealand Coal & Carbon
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- White Energy Company Limited
- Aboitiz Power Corporation - Philippines
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- Intertek Mineral Services - Indonesia
- Electricity Generating Authority of Thailand
- Kohat Cement Company Ltd. - Pakistan
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- Barasentosa Lestari - Indonesia
- Essar Steel Hazira Ltd - India
- Billiton Holdings Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Price Waterhouse Coopers - Russia
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- Vijayanagar Sugar Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Therma Luzon, Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
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- Vizag Seaport Private Limited - India
- Port Waratah Coal Services - Australia
- Bahari Cakrawala Sebuku - Indonesia
- ICICI Bank Limited - India
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- Thiess Contractors Indonesia
- MS Steel International - UAE
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- Indian Oil Corporation Limited
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- Carbofer General Trading SA - India
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- Coalindo Energy - Indonesia
- Posco Energy - South Korea
- Tamil Nadu electricity Board
- Orica Mining Services - Indonesia
- Deloitte Consulting - India
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
- Heidelberg Cement - Germany
- Eastern Energy - Thailand
- Vedanta Resources Plc - India
- Anglo American - United Kingdom
- Merrill Lynch Commodities Europe
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Antam Resourcindo - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Indonesian Coal Mining Association
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- Attock Cement Pakistan Limited
- Romanian Commodities Exchange
- PowerSource Philippines DevCo
- Toyota Tsusho Corporation, Japan
- Formosa Plastics Group - Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IEA Clean Coal Centre - UK
- Energy Link Ltd, New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- The State Trading Corporation of India Ltd
- Coastal Gujarat Power Limited - India
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- Independent Power Producers Association of India
- IHS Mccloskey Coal Group - USA
- Sical Logistics Limited - India
- Binh Thuan Hamico - Vietnam
- Simpson Spence & Young - Indonesia
- SMG Consultants - Indonesia
- Sojitz Corporation - Japan
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