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Friday, 27 September 13
CAPESIZES REGAINING PART OF THEIR FORMER GLORY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The latest dry bulk market rally has been nothing short of spectacular, with freight rates more than doubling over the past few weeks. This growth has largely been led by the once again booming Capesize segment, the largest of the bulk carriers' breed. In its latest report, shipbroker Intermodal noted that with the Baltic Capesize Index now above 4,000 points and the average of the 4 TC routes only a breadth away from $40,000 per 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.
According to Mr. George Lazaridis, Research Analyst, noted that "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 order book schedule (14% order book 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", he noted.
Lazaridis said that "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 second hand market nor slots in the new building market", he said.
Still, on the other hand, "looking at both the prices in the second hand market and new building 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 new building counterparts. Yes, they may not be new eco-designs, but the discount is still noteworthy (11%, 30% and 56% cheaper than a new building 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", said Mr. Lazaridis.
He went on to note that "the current price gap that has occurred has been partly due to the sharp rise in new building prices over the past nine months which was at a faster pace than the second hand market could accommodate. What’s more is that although we are not at the absolute bottom anymore, we are still at low second hand 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 second hand market in October 2003 while during the same period a new building 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?", Lazaridis concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Friday, 04 October 13
US COAL PRODUCTION UP 2.1% WEEK ON WEEK - EIA
COALspot.com – United States the world’s second largest coal producer produced approximately 19.70 million short tons (mmst) of coal in ...
Thursday, 03 October 13
INDONESIA AUGUST COAL EXPORTS FALL 12.90 % FROM JULY TO 30.71 MIL MT
COALspot.com: Indonesia, the 15th largest economy in world, 4th largest coal producer in world and world's largest multi grade coal exporter ...
Thursday, 03 October 13
TOP FOUR U.S. COAL COMPANIES SUPPLIED MORE THAN HALF OF U.S. COAL PRODUCTION IN 2011 - EIA
In the past two years, more than half of U.S. coal production was attributable to the top four coal producers, the result of changes in regional pro ...
Thursday, 03 October 13
HANDY: PERIOD MARKET STAND IN GOOD POSITION - FEARNRESEARCH
Handy
Nickel ore and Bauxite was active last week but slowed down now due to Chinese holidays. Ships opened in North China fixed at US$ 11-13k leve ...
Wednesday, 02 October 13
DRY BULK MARKET IS STILL MAINTAINING ITS UPWARD DIRECTION
Chartering (Wet: Stable- / Dry: Firm+)
Despite the fact that rates for Capes didn't continue their crazy ride this past week, the Dry Bulk market ...
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- Economic Council, Georgia
- Bukit Asam (Persero) Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Malabar Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- Deloitte Consulting - India
- Global Green Power PLC Corporation, Philippines
- Bhatia International Limited - India
- Kideco Jaya Agung - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- Kepco SPC Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Ministry of Mines - Canada
- ICICI Bank Limited - India
- Parry Sugars Refinery, India
- Ind-Barath Power Infra Limited - India
- Eastern Energy - Thailand
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Sree Jayajothi Cements Limited - India
- Bhushan Steel Limited - India
- Billiton Holdings Pty Ltd - Australia
- McConnell Dowell - Australia
- Wood Mackenzie - Singapore
- VISA Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Petron Corporation, Philippines
- Riau Bara Harum - Indonesia
- Indo Tambangraya Megah - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- PTC India Limited - India
- Maheswari Brothers Coal Limited - India
- White Energy Company Limited
- Grasim Industreis Ltd - India
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- Planning Commission, India
- CNBM International Corporation - China
- Madhucon Powers Ltd - India
- Australian Coal Association
- Mjunction Services Limited - India
- Mintek Dendrill Indonesia
- Global Business Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- International Coal Ventures Pvt Ltd - India
- Baramulti Group, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Mercuria Energy - Indonesia
- Port Waratah Coal Services - Australia
- Energy Development Corp, Philippines
- CIMB Investment Bank - Malaysia
- Chamber of Mines of South Africa
- Standard Chartered Bank - UAE
- India Bulls Power Limited - India
- Africa Commodities Group - South Africa
- Jorong Barutama Greston.PT - Indonesia
- Coastal Gujarat Power Limited - India
- San Jose City I Power Corp, Philippines
- Electricity Generating Authority of Thailand
- Maharashtra Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- The State Trading Corporation of India Ltd
- Videocon Industries ltd - India
- Thiess Contractors Indonesia
- London Commodity Brokers - England
- Romanian Commodities Exchange
- Chettinad Cement Corporation Ltd - India
- Sojitz Corporation - Japan
- New Zealand Coal & Carbon
- Minerals Council of Australia
- Rio Tinto Coal - Australia
- IHS Mccloskey Coal Group - USA
- TNB Fuel Sdn Bhd - Malaysia
- SN Aboitiz Power Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Uttam Galva Steels Limited - India
- Star Paper Mills Limited - India
- European Bulk Services B.V. - Netherlands
- Altura Mining Limited, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- GMR Energy Limited - India
- Coalindo Energy - Indonesia
- Orica Mining Services - Indonesia
- Trasteel International SA, Italy
- Antam Resourcindo - Indonesia
- Metalloyd Limited - United Kingdom
- Bhoruka Overseas - Indonesia
- Semirara Mining Corp, Philippines
- Tamil Nadu electricity Board
- Ministry of Finance - Indonesia
- Bangladesh Power Developement Board
- Siam City Cement PLC, Thailand
- Gujarat Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Sarangani Energy Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Larsen & Toubro Limited - India
- Gujarat Mineral Development Corp Ltd - India
- SMG Consultants - Indonesia
- SMC Global Power, Philippines
- Meenaskhi Energy Private Limited - India
- Vedanta Resources Plc - India
- Toyota Tsusho Corporation, Japan
- The Treasury - Australian Government
- Marubeni Corporation - India
- Interocean Group of Companies - India
- Indonesian Coal Mining Association
- Tata Chemicals Ltd - India
- Lanco Infratech Ltd - India
- Agrawal Coal Company - India
- Karbindo Abesyapradhi - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Medco Energi Mining Internasional
- Jaiprakash Power Ventures ltd
- ASAPP Information Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- Bukit Baiduri Energy - Indonesia
- Posco Energy - South Korea
- Attock Cement Pakistan Limited
- Independent Power Producers Association of India
- Bukit Makmur.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- MS Steel International - UAE
- Coal and Oil Company - UAE
- Xindia Steels Limited - India
- Global Coal Blending Company Limited - Australia
- Sical Logistics Limited - India
- Aditya Birla Group - India
- IEA Clean Coal Centre - UK
- GVK Power & Infra Limited - India
- Thai Mozambique Logistica
- Formosa Plastics Group - Taiwan
- Georgia Ports Authority, United States
- Indogreen Group - Indonesia
- Parliament of New Zealand
- The University of Queensland
- Timah Investasi Mineral - Indoneisa
- Wilmar Investment Holdings
- Asmin Koalindo Tuhup - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Simpson Spence & Young - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Borneo Indobara - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Kartika Selabumi Mining - Indonesia
- Kaltim Prima Coal - Indonesia
- Vizag Seaport Private Limited - India
- Makarim & Taira - Indonesia
- Banpu Public Company Limited - Thailand
- Anglo American - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Essar Steel Hazira Ltd - India
- Cement Manufacturers Association - India
- Power Finance Corporation Ltd., India
- Ambuja Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GN Power Mariveles Coal Plant, Philippines
- Singapore Mercantile Exchange
- AsiaOL BioFuels Corp., Philippines
- Aboitiz Power Corporation - Philippines
- PowerSource Philippines DevCo
- Therma Luzon, Inc, Philippines
- Heidelberg Cement - Germany
- Kumho Petrochemical, South Korea
- Merrill Lynch Commodities Europe
- LBH Netherlands Bv - Netherlands
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- Goldman Sachs - Singapore
- Ceylon Electricity Board - Sri Lanka
- Bank of Tokyo Mitsubishi UFJ Ltd
- Semirara Mining and Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Barasentosa Lestari - Indonesia
- Meralco Power Generation, Philippines
- Commonwealth Bank - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
- Eastern Coal Council - USA
- Sakthi Sugars Limited - India
- Gujarat Sidhee Cement - India
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- Cigading International Bulk Terminal - Indonesia
- PNOC Exploration Corporation - Philippines
- Edison Trading Spa - Italy
- Jindal Steel & Power Ltd - India
- Indian Oil Corporation Limited
- Kobexindo Tractors - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Bahari Cakrawala Sebuku - Indonesia
- Sindya Power Generating Company Private Ltd
- Central Electricity Authority - India
- Carbofer General Trading SA - India
- Electricity Authority, New Zealand
- Orica Australia Pty. Ltd.
- Indika Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Australian Commodity Traders Exchange
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- GAC Shipping (India) Pvt Ltd
- Manunggal Multi Energi - Indonesia
- Dalmia Cement Bharat India
- Iligan Light & Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Oldendorff Carriers - Singapore
- Savvy Resources Ltd - HongKong
- Energy Link Ltd, New Zealand
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