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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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Tuesday, 17 September 13
BUMA PRODUCED 3.57 PERCENT MORE COAL IN AUGUST
COALspot.com: BUMA has removed totaled 25.20 million bcm of overburden to produce 2.90 million tons coal in August 2013. BUMI produced 3.07 percent ...
Tuesday, 17 September 13
NEWCASTLE PORT SHIPPED ABOUT 27 PERCENT MORE COAL WEEK ON WEEK
COALspot.com: Power plant and semi-soft coking coal shipments from Australia's Newcastle port up 27.26 per cent week on week to 3.01 million mt for ...
Tuesday, 17 September 13
TAIPOWER INVITES BIDS FOR SUPPLY OF SUB-BITUMINOUS COAL
COALspot.com - Taiwan Power Company intends to procure 1.050 million tons of sub-bituminous coal for Taipower thermal power plant through open tende ...
Tuesday, 17 September 13
ORPHEUS SECURES SIGNIFICANT INFRASTRUCTURE DEAL THROUGH ACQUISITION OF SOUTH KALIMANTAN PORT CAPACITY
COALspot.com : Orpheus Energy Limited (ASX: OEG) of Australia has today announced that, it has executed a binding agreement with the proprietor of S ...
Monday, 16 September 13
WHAT RECOVERY MEANS FOR THE CAPESIZE MARKET - COMMODORE RESEARCH
COALspot.com: The simple fact that capesize rates have been able to increase above the $9,000/mark and become much more responsive to changes in car ...
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- Energy Link Ltd, New Zealand
- The State Trading Corporation of India Ltd
- Cigading International Bulk Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- Xindia Steels Limited - India
- MS Steel International - UAE
- Kohat Cement Company Ltd. - Pakistan
- Sakthi Sugars Limited - India
- Dalmia Cement Bharat India
- Bukit Baiduri Energy - Indonesia
- IEA Clean Coal Centre - UK
- Medco Energi Mining Internasional
- Samtan Co., Ltd - South Korea
- Kepco SPC Power Corporation, Philippines
- PowerSource Philippines DevCo
- Marubeni Corporation - India
- Heidelberg Cement - Germany
- Standard Chartered Bank - UAE
- Ministry of Mines - Canada
- Borneo Indobara - Indonesia
- Australian Commodity Traders Exchange
- Miang Besar Coal Terminal - Indonesia
- ASAPP Information Group - India
- Wilmar Investment Holdings
- AsiaOL BioFuels Corp., Philippines
- GMR Energy Limited - India
- Mjunction Services Limited - India
- Chettinad Cement Corporation Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kapuas Tunggal Persada - Indonesia
- Metalloyd Limited - United Kingdom
- Kumho Petrochemical, South Korea
- Indika Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Economic Council, Georgia
- IHS Mccloskey Coal Group - USA
- Sical Logistics Limited - India
- India Bulls Power Limited - India
- Toyota Tsusho Corporation, Japan
- Global Coal Blending Company Limited - Australia
- Binh Thuan Hamico - Vietnam
- Sree Jayajothi Cements Limited - India
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Ceylon Electricity Board - Sri Lanka
- Indian Oil Corporation Limited
- European Bulk Services B.V. - Netherlands
- Aditya Birla Group - India
- Renaissance Capital - South Africa
- White Energy Company Limited
- GAC Shipping (India) Pvt Ltd
- Singapore Mercantile Exchange
- Bhushan Steel Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Essar Steel Hazira Ltd - India
- Agrawal Coal Company - India
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Pendopo Energi Batubara - Indonesia
- TeaM Sual Corporation - Philippines
- Savvy Resources Ltd - HongKong
- Salva Resources Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Port Waratah Coal Services - Australia
- Leighton Contractors Pty Ltd - Australia
- Central Java Power - Indonesia
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- Global Green Power PLC Corporation, Philippines
- CNBM International Corporation - China
- Bulk Trading Sa - Switzerland
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The Treasury - Australian Government
- Directorate General of MIneral and Coal - Indonesia
- Baramulti Group, Indonesia
- Oldendorff Carriers - Singapore
- The University of Queensland
- Wood Mackenzie - Singapore
- Mintek Dendrill Indonesia
- Cement Manufacturers Association - India
- Thai Mozambique Logistica
- Trasteel International SA, Italy
- Simpson Spence & Young - Indonesia
- Makarim & Taira - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- SMG Consultants - Indonesia
- Barasentosa Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Videocon Industries ltd - India
- Billiton Holdings Pty Ltd - Australia
- PTC India Limited - India
- Australian Coal Association
- Planning Commission, India
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Intertek Mineral Services - Indonesia
- Mercuria Energy - Indonesia
- Central Electricity Authority - India
- Larsen & Toubro Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- Global Business Power Corporation, Philippines
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- Kaltim Prima Coal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Meralco Power Generation, Philippines
- Parliament of New Zealand
- Mercator Lines Limited - India
- Deloitte Consulting - India
- Edison Trading Spa - Italy
- LBH Netherlands Bv - Netherlands
- Carbofer General Trading SA - India
- Rashtriya Ispat Nigam Limited - India
- Meenaskhi Energy Private Limited - India
- Malabar Cements Ltd - India
- Grasim Industreis Ltd - India
- McConnell Dowell - Australia
- Lanco Infratech Ltd - India
- Ministry of Transport, Egypt
- Globalindo Alam Lestari - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Coastal Gujarat Power Limited - India
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
- Bhoruka Overseas - Indonesia
- Madhucon Powers Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Latin American Coal - Colombia
- Indian Energy Exchange, India
- Antam Resourcindo - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- Price Waterhouse Coopers - Russia
- Commonwealth Bank - Australia
- Merrill Lynch Commodities Europe
- Altura Mining Limited, Indonesia
- Directorate Of Revenue Intelligence - India
- Petron Corporation, Philippines
- GVK Power & Infra Limited - India
- Coalindo Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- SN Aboitiz Power Inc, Philippines
- Star Paper Mills Limited - India
- Orica Mining Services - Indonesia
- Bharathi Cement Corporation - India
- Anglo American - United Kingdom
- Ind-Barath Power Infra Limited - India
- Eastern Coal Council - USA
- Iligan Light & Power Inc, Philippines
- Eastern Energy - Thailand
- Kobexindo Tractors - Indoneisa
- Bangladesh Power Developement Board
- Vizag Seaport Private Limited - India
- Manunggal Multi Energi - Indonesia
- Uttam Galva Steels Limited - India
- New Zealand Coal & Carbon
- Petrochimia International Co. Ltd.- Taiwan
- Africa Commodities Group - South Africa
- ICICI Bank Limited - India
- Therma Luzon, Inc, Philippines
- Tamil Nadu electricity Board
- Chamber of Mines of South Africa
- Asmin Koalindo Tuhup - Indonesia
- Electricity Generating Authority of Thailand
- Ministry of Finance - Indonesia
- Siam City Cement - Thailand
- Coal and Oil Company - UAE
- Banpu Public Company Limited - Thailand
- Rio Tinto Coal - Australia
- Sojitz Corporation - Japan
- Indo Tambangraya Megah - Indonesia
- Jindal Steel & Power Ltd - India
- Indogreen Group - Indonesia
- Parry Sugars Refinery, India
- Sinarmas Energy and Mining - Indonesia
- Goldman Sachs - Singapore
- Power Finance Corporation Ltd., India
- Semirara Mining Corp, Philippines
- Energy Development Corp, Philippines
- London Commodity Brokers - England
- Attock Cement Pakistan Limited
- Riau Bara Harum - Indonesia
- Kartika Selabumi Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Minerals Council of Australia
- Alfred C Toepfer International GmbH - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Orica Australia Pty. Ltd.
- PNOC Exploration Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Jaiprakash Power Ventures ltd
- Vedanta Resources Plc - India
- Posco Energy - South Korea
- Ambuja Cements Ltd - India
- Formosa Plastics Group - Taiwan
- Bhatia International Limited - India
- Timah Investasi Mineral - Indoneisa
- Siam City Cement PLC, Thailand
- San Jose City I Power Corp, Philippines
- Sindya Power Generating Company Private Ltd
- Neyveli Lignite Corporation Ltd, - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- SMC Global Power, Philippines
- Electricity Authority, New Zealand
- GN Power Mariveles Coal Plant, Philippines
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