We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 25 September 13
IS IT TIME AGAIN TO SUPERSIZE AGAIN? - GEORGE LAZARIDIS
 After an early arrival of the seasonal rally in the Capesize market, things look to be on the upbeat for these dry bulk giants. With the Index reaching just over 4,000 points and the average of the 4 TC routes only a breadth away from US$ 40,000/day, it looks as though the worst is now behind us and all market players take an opportunity for a breather and to reorganize their strategy. This climb in the freight market is no small feat. The last time we saw the freight market climb to these levels was back in 2010 in the respective September rally then. This was at a time when the Capesize and VLOC fleet stood at around 1,096 vessels compared to the current fleet of 1,437 (that’s give or take 500 deliveries minus scrapping and a more than 30% increase in carrying capacity). In comparison we now stand head to head with a considerably smaller orderbook schedule (14% orderbook to fleet ratio compared to the 50% seen in 2010) and are still seeing a strong rise in demand from commodities such as iron ore and coal albeit.
As promising as the above may sound, this may end up being nothing more than just a September rally. Rates will drop back down from their current highs and although it doesn’t look likely that they will reach the lows of 2012 any time soon, it also looks unlikely that we will soon see a rapid boom in the market that would drive a major “bull rush” and that may well be why we haven’t really seen that many investors in a hurry to secure units in the secondhand market nor slots in the newbuilding market.
On the Other hand, looking at both the prices in the secondhand market and newbuilding market, you do tend tο wonder why we haven’t seen more activity? I mean it’s not like Capes had been excessively priced compared to Panamaxes, with the latter having witnessed a remarkable rise in interest and activity over the past nine months. Granted that all prices have now gone up since their previous rock bottom levels of December 2012, however there is still reason to take interest in this size segment. Resale, 5 year old and 10 year old units are trading at price levels which are at competitive levels when compared to their newbuilding counterparts. Yes, they may not be new eco-designs, but the discount is still noteworthy (11%, 30% and 56% cheaper than a newbuilding for resale, 5 year old and 10 year old respectively) and when compared to their current going period charter levels, it makes sense to take on this minimal risk as the pay-off seems to be significant.
The current price gap that has occurred has been partly due to the sharp rise in newbuilding prices over the past nine months which was at a faster pace than the secondhand market could accommodate. What’s more is that although we are not at the absolute bottom anymore, we are still at low secondhand price levels which were last seen in the early 2000’s. As an example, a five year old Capesize would be changing hands for US$ 35.0m in the secondhand market in October 2003 while during the same period a newbuilding would cost around US$ 42.5m (meaning that the then discount of a 5 year old vessel was only 22%).
So there you have it. The fundamentals seem to be there for Capes this week and while it has been the Panamaxes that have attracted most of the interest over these past couple of months, it seems to be the Capesize market that is promising higher gains thanks to the current market arbitrage. That is all well and good if you can find a noteworthy vessel for sale in this market, because as it seems, as much as there may be a limited number of buyers for Capes, so too is there a shortage of good quality candidates circulating the market. As such, one wonders how much longer these low price levels may last?
Compiled by:
Intermodal Research & Valuations | research@intermodal.gr
Analysts:
Mr. George Lazaridis | g.lazaridis@intermodal.gr
Ms. Eva Tzima | e.tzima@intermodal.gr
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no re-producing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
Information contained within the website of COALspot.com is intended for informational purposes only and is not intended as professional counsel and should not be used as such.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 07 October 13
SGX - CFR SOUTH CHINA COAL SWAPS END ALMOST FLAT
COALspot.com : SGX has launched API 8 CFR South China Coal Swap on 29 April 2013 and SGX replaced the previous swap.
API 8 CFR South China Coal s ...
Monday, 07 October 13
Q3'14 SUB-BIT FOB INDONESIA COAL SWAP CLOSED 6.53% HIGHER THAN Q4'13
COALspot.com – Sub-Bit Indonesia coal swap (FOB ) for average Q4 2013 delivery gained 0.53 % on day and fell 2.33 percept month on month ...
Sunday, 06 October 13
DRY BULK FREIGHT MARKET STAYS STEADY IN SPITE CHINESE HOLIDAYS - SOLYM CARRIERS SINGAPORE
COALspot.com: The freight market continued to remain firm in spite of Chinese holidays.
The BDI closed at 2,084 points on Friday 4 October or up ...
Saturday, 05 October 13
CAPESIZE EARNINGS SKYROCKET AS A RESULT OF INCREASED CHINA DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
An increased iron ore demand has triggered this latest dry bulk rally, which could get yet another boost during next week, when China is expected to ...
Friday, 04 October 13
NICKEL ORE SHIPMENTS - LESSONS LEARNED FROM LOSSES
One of the most pressing problems for the bulk shipping industry is the safe carriage of nickel ore. The increasing demand for this commodity is fue ...
|
|
|
Showing 4081 to 4085 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Siam City Cement - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Antam Resourcindo - Indonesia
- Sical Logistics Limited - India
- SN Aboitiz Power Inc, Philippines
- Electricity Generating Authority of Thailand
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Indian Oil Corporation Limited
- Kalimantan Lumbung Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indogreen Group - Indonesia
- Toyota Tsusho Corporation, Japan
- Sree Jayajothi Cements Limited - India
- Timah Investasi Mineral - Indoneisa
- Siam City Cement PLC, Thailand
- Bangladesh Power Developement Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IEA Clean Coal Centre - UK
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Finance - Indonesia
- Parry Sugars Refinery, India
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Ministry of Transport, Egypt
- Meralco Power Generation, Philippines
- Kumho Petrochemical, South Korea
- Bhoruka Overseas - Indonesia
- Bharathi Cement Corporation - India
- Barasentosa Lestari - Indonesia
- Bukit Baiduri Energy - Indonesia
- Uttam Galva Steels Limited - India
- Grasim Industreis Ltd - India
- Billiton Holdings Pty Ltd - Australia
- ASAPP Information Group - India
- Jaiprakash Power Ventures ltd
- Ambuja Cements Ltd - India
- Thai Mozambique Logistica
- Posco Energy - South Korea
- Mintek Dendrill Indonesia
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- GVK Power & Infra Limited - India
- Power Finance Corporation Ltd., India
- Global Coal Blending Company Limited - Australia
- PNOC Exploration Corporation - Philippines
- Vizag Seaport Private Limited - India
- Kobexindo Tractors - Indoneisa
- Singapore Mercantile Exchange
- Edison Trading Spa - Italy
- Formosa Plastics Group - Taiwan
- Kartika Selabumi Mining - Indonesia
- Wood Mackenzie - Singapore
- Star Paper Mills Limited - India
- Sarangani Energy Corporation, Philippines
- Oldendorff Carriers - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Africa Commodities Group - South Africa
- Bhatia International Limited - India
- Minerals Council of Australia
- Heidelberg Cement - Germany
- Petron Corporation, Philippines
- Orica Australia Pty. Ltd.
- Trasteel International SA, Italy
- Coastal Gujarat Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- SMC Global Power, Philippines
- Altura Mining Limited, Indonesia
- Kaltim Prima Coal - Indonesia
- New Zealand Coal & Carbon
- Savvy Resources Ltd - HongKong
- The Treasury - Australian Government
- Banpu Public Company Limited - Thailand
- Miang Besar Coal Terminal - Indonesia
- Tata Chemicals Ltd - India
- LBH Netherlands Bv - Netherlands
- Sakthi Sugars Limited - India
- Riau Bara Harum - Indonesia
- Commonwealth Bank - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Baramulti Group, Indonesia
- Planning Commission, India
- International Coal Ventures Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Mercator Lines Limited - India
- Rio Tinto Coal - Australia
- Port Waratah Coal Services - Australia
- Cigading International Bulk Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- PTC India Limited - India
- Semirara Mining Corp, Philippines
- Medco Energi Mining Internasional
- San Jose City I Power Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Thiess Contractors Indonesia
- Carbofer General Trading SA - India
- Wilmar Investment Holdings
- Petrochimia International Co. Ltd.- Taiwan
- Energy Link Ltd, New Zealand
- Chettinad Cement Corporation Ltd - India
- AsiaOL BioFuels Corp., Philippines
- India Bulls Power Limited - India
- Makarim & Taira - Indonesia
- Chamber of Mines of South Africa
- Central Java Power - Indonesia
- Lanco Infratech Ltd - India
- Price Waterhouse Coopers - Russia
- Economic Council, Georgia
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Business Power Corporation, Philippines
- Mjunction Services Limited - India
- McConnell Dowell - Australia
- Australian Coal Association
- Leighton Contractors Pty Ltd - Australia
- ICICI Bank Limited - India
- SMG Consultants - Indonesia
- Bulk Trading Sa - Switzerland
- Sojitz Corporation - Japan
- Indonesian Coal Mining Association
- Eastern Coal Council - USA
- Meenaskhi Energy Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Holcim Trading Pte Ltd - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Agrawal Coal Company - India
- Attock Cement Pakistan Limited
- Dalmia Cement Bharat India
- The University of Queensland
- Xindia Steels Limited - India
- Aditya Birla Group - India
- Bayan Resources Tbk. - Indonesia
- Karaikal Port Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Metalloyd Limited - United Kingdom
- Romanian Commodities Exchange
- Parliament of New Zealand
- Globalindo Alam Lestari - Indonesia
- Vedanta Resources Plc - India
- Deloitte Consulting - India
- Gujarat Mineral Development Corp Ltd - India
- Marubeni Corporation - India
- Electricity Authority, New Zealand
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- PowerSource Philippines DevCo
- Goldman Sachs - Singapore
- Therma Luzon, Inc, Philippines
- CNBM International Corporation - China
- Pendopo Energi Batubara - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- South Luzon Thermal Energy Corporation
- GAC Shipping (India) Pvt Ltd
- London Commodity Brokers - England
- Kapuas Tunggal Persada - Indonesia
- Ministry of Mines - Canada
- Kideco Jaya Agung - Indonesia
- Australian Commodity Traders Exchange
- Merrill Lynch Commodities Europe
- Ceylon Electricity Board - Sri Lanka
- Alfred C Toepfer International GmbH - Germany
- Salva Resources Pvt Ltd - India
- The State Trading Corporation of India Ltd
- CIMB Investment Bank - Malaysia
- Cement Manufacturers Association - India
- Asmin Koalindo Tuhup - Indonesia
- Larsen & Toubro Limited - India
- Mercuria Energy - Indonesia
- Indika Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- TeaM Sual Corporation - Philippines
- MS Steel International - UAE
- Bhushan Steel Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- Ind-Barath Power Infra Limited - India
- Indo Tambangraya Megah - Indonesia
- VISA Power Limited - India
- Coalindo Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Straits Asia Resources Limited - Singapore
- OPG Power Generation Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coal and Oil Company - UAE
- Central Electricity Authority - India
- Essar Steel Hazira Ltd - India
- Renaissance Capital - South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Energy Development Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Latin American Coal - Colombia
- Georgia Ports Authority, United States
- Sindya Power Generating Company Private Ltd
- Indian Energy Exchange, India
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Maheswari Brothers Coal Limited - India
- Borneo Indobara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Orica Mining Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Interocean Group of Companies - India
- Independent Power Producers Association of India
- Anglo American - United Kingdom
- Jindal Steel & Power Ltd - India
- Manunggal Multi Energi - Indonesia
- Videocon Industries ltd - India
- Gujarat Sidhee Cement - India
|
| |
| |
|
