We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 17 June 14
DRY BULK FREIGHT RATES TO RISE DURING THE SECOND HALF OF 2014, AS CHINA IS EXPECTED TO START IMPORTING MORE IRON ORE FROM BRAZIL - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
 In its latest analysis of the dry bulk market, BIMCO said that it doesn’t expect freight rates to react significantly to increased demand before China starts taking more iron ore from Brazil, most likely during the second half of the year,. As a result, BIMCO said that “our forecast for June/July: BIMCO believes that the level of Capesize TC average rates will stay around USD 12,000- 22,000 per day. Panamax TC average rates will feel the supply pressure and stay around USD 4,000-9,000 per day. For the Supramax segment, BIMCO forecasts freight rates in the USD 7,000-12,000 per day interval, whereas Handysize freight rates are expected around USD 6,000-8,500 per day.
According to the market outlook, “a trend has been developing over some years now and going forward, more of the same is expected. This trend is a continued Asia-biased dry bulk market, where China is completely dominant, dwarfing the slow but steady Indian import growth, while the rest of the world only grows imports slowly. Moreover, the trend in commodities became increasingly focused on coal and iron ore trades that are taking an even larger share of the pie going forward. This trend favours the larger bulkers. As the big mines in Australia and Brazil have scaled up iron ore output significantly in 2014 and will do so in the coming two years, the price of the commodity has been under pressure.
Such a development should benefit international trading at the expense of China’s higher-cost, domestically-produced iron ore of poorer quality. Is that what is happening? Yes and no. China has increased its iron ore imports significantly (up by 21% in the first four months of 2014 from a year on) as good merchants buy at the right price, but domestic production keeps up (so far) despite the obvious cost pressure. They are doing so at a very steady level seen during the past 5 years. Conclusion: Don’t expect China to become 100% reliant on imports while enjoying the lower market price. The current iron ore price is around USD 90 per ton, down from 130-140 per ton in H2-2013″, BIMCO noted.
According to BIMCO’s Chief Shipping Analyst, Mr. Peter Sand, the first half of 2013 “was a low and flat freight rate environment, so in that sense so much more has happened in 2014. Normally, volatility is good for operators, but when the past two months have been flat, there is only some comfort in knowing that the year-to-date BDI average is up by 51% (end-May). Below the surface, Capesize earnings are up by 158% to USD 14,504 per day, Panamaxes up by 22% (to USD 9,208 per day), Supramaxes up by 28% (to USD 10,906 per day) and Handysizes up by 26% (to USD 9,181 per day), he noted.
Supply wise, BIMCO’s report said that “the dry bulk fleet has grown by another 121 ships in the past two months (0.9% in DWT). The expansion has been easy in the Capesize segment, with only 10 new deliveries, as compared to roughly 30 new ships flowing into each of the other three sub-segments. For the full year, our estimates have been slightly upwardly adjusted, now to reach 52 million DWT of newbuilt deliveries, meaning that the fleet will grow by 5.3% (up from 49 million DWT).
Order-book activity has been slowing down since January. The order book now holds 1,989 ships (163.4 million DWT) for future delivery and is still heavy on the Panamax side. One hundred and nine ships had left the fleet by the end of May 2014, equal to 6.6 million DWT. During the first five months of 2013 no less than 12.2 million DWT left the fleet. BIMCO remains firm on the forecast of 14 million DWT to be sold for demolition for the full year, significantly down from last years’ 22.2 million DWT. Demolished tonnage is only marginally younger on average this year. With expectations of improved markets just around the corner, BIMCO forecasts lower levels of demolition for the coming years as well”, the report noted.
It added that “the Handysize fleet started to grow again in April, following nine successive months of contraction. The total Handysize fleet remains shy of the record 89.17 million DWT fleet size in 1985, currently at 87.8 million DWT. BIMCO forecasts the Handysize fleet to grow slowly and thus remain South of the record size in 2014 and potentially in 2015 too.
In opposition to this is the Panamax segment, which with little hesitation, sets a new fleet size record every day. Currently growing at 8.7% on a year-on-year basis, standing at 191 million DWT at the end of May, the 200 million DWT fleet size threshold is likely to be reached before year-end”, BIMCO said.
Demand
Demand-wise South American grain exports finally got under way. According to BIMCO, “the lower export figures from April being only on a par with 2012 illustrates the delayed take-off in shipments. Brazil has been the major exporter during Q2, while Argentina delivered more steadily throughout Q2 and Q3. Ship broking company SSY expects a combined 35.8 million tons (mt) of soya exports in Q2, with 30.8 mt in Q3.
The strength of the current upturn depends on Asia’s appetite, as all growth stems from that region. The Atlantic basin has been awash with ships during most of 2014, putting downward pressure on freight rates for Panamax and Supramax ships in particular. Freight rates for a trans-Atlantic round-voyage, which were hitting a three-year high by mid-December 2013 (USD 20,500 per day), subsequently experienced four straight months of losses to hit USD 2,500 per day for Panamaxes. Since mid-April, Panamaxes have tripled earnings on the back of demand, finally meeting expectations. Supramax ships are still in the doldrums, failing to follow suit with big brother so far.
The optimism built up in H2-2013 has all but evaporated. BIMCO still expects stronger earnings as we enter into H2-2014, but the world fleet is capable of catering to a much higher level of demand than it does today. This is what makes the road forward full of air pockets, with owners and operators trying to hit the optimum speed in a quest to utilise their ships better”, BIMCO concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 30 June 14
WEEKLY CFR SOUTH CHINA COAL SWAPS DECLINE CONTINUES; Q1'15 LOST US$ 4.55 PMT IN A WEEK
COALspot.com: API 8 CFR South China Coal swap for delivery in Q3 fell US$ 5.25 month on month on Friday, dipping under $69 a tone. The CFR South Ch ...
Monday, 30 June 14
INDO - INDIA FREIGHT RATES CONTINUE TO WEAK
COALspot.com: The latest dry Index shows that average all-in spot freight declined, the Panamax and Supramax slipping by 9.11 percent and 4% respec ...
Friday, 27 June 14
DRY BULK MARKET STILL LOOKING FOR UPSIDE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has kept up its lacklustre performance during the past week, as evidenced by the course of the Baltic Dry Index (BDI). The BDI ...
Thursday, 26 June 14
PANAMAX : A PACIFIC ROUND PAYS AROUND US$ 3K DAILY - FEARNLEYS AS
Handy
In the Atlantic there has been little activity which again has caused rates to slip across all trades. TA´s are now down to US$ 5,500 ...
Thursday, 26 June 14
KOMIPO INVITES BIDS FOR TOTAL 750K MT OF BITUMINOUS COAL FOR 3CY
COALspot.com: South Korean state-owned utility Korea Midland Power (KOMIPO) has issued a new tender for supply of total 250,000 MT of bituminous co ...
|
|
|
Showing 3636 to 3640 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- PetroVietnam Power Coal Import and Supply Company
- India Bulls Power Limited - India
- IEA Clean Coal Centre - UK
- Thiess Contractors Indonesia
- Medco Energi Mining Internasional
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Wood Mackenzie - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Australian Coal Association
- Goldman Sachs - Singapore
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Cement Manufacturers Association - India
- LBH Netherlands Bv - Netherlands
- Electricity Authority, New Zealand
- Karaikal Port Pvt Ltd - India
- Interocean Group of Companies - India
- Latin American Coal - Colombia
- Barasentosa Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bangladesh Power Developement Board
- Toyota Tsusho Corporation, Japan
- Parliament of New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Meralco Power Generation, Philippines
- Essar Steel Hazira Ltd - India
- OPG Power Generation Pvt Ltd - India
- Sakthi Sugars Limited - India
- Singapore Mercantile Exchange
- Miang Besar Coal Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Agrawal Coal Company - India
- Manunggal Multi Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Aditya Birla Group - India
- San Jose City I Power Corp, Philippines
- Economic Council, Georgia
- Jaiprakash Power Ventures ltd
- CIMB Investment Bank - Malaysia
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- PowerSource Philippines DevCo
- Power Finance Corporation Ltd., India
- Lanco Infratech Ltd - India
- Mercuria Energy - Indonesia
- Indian Energy Exchange, India
- GMR Energy Limited - India
- Edison Trading Spa - Italy
- Xindia Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Kumho Petrochemical, South Korea
- Commonwealth Bank - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- SMG Consultants - Indonesia
- Jindal Steel & Power Ltd - India
- International Coal Ventures Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Gujarat Sidhee Cement - India
- European Bulk Services B.V. - Netherlands
- White Energy Company Limited
- Makarim & Taira - Indonesia
- Sical Logistics Limited - India
- Planning Commission, India
- Minerals Council of Australia
- Bahari Cakrawala Sebuku - Indonesia
- Africa Commodities Group - South Africa
- The Treasury - Australian Government
- Iligan Light & Power Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- PNOC Exploration Corporation - Philippines
- SMC Global Power, Philippines
- Merrill Lynch Commodities Europe
- Siam City Cement PLC, Thailand
- Kobexindo Tractors - Indoneisa
- The University of Queensland
- Holcim Trading Pte Ltd - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Tata Chemicals Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Formosa Plastics Group - Taiwan
- Madhucon Powers Ltd - India
- Oldendorff Carriers - Singapore
- Mjunction Services Limited - India
- Central Java Power - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- Sindya Power Generating Company Private Ltd
- Karbindo Abesyapradhi - Indoneisa
- Ceylon Electricity Board - Sri Lanka
- Kaltim Prima Coal - Indonesia
- Baramulti Group, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- VISA Power Limited - India
- Therma Luzon, Inc, Philippines
- Videocon Industries ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Simpson Spence & Young - Indonesia
- London Commodity Brokers - England
- ICICI Bank Limited - India
- Global Coal Blending Company Limited - Australia
- Orica Australia Pty. Ltd.
- Kideco Jaya Agung - Indonesia
- Indogreen Group - Indonesia
- GAC Shipping (India) Pvt Ltd
- Indika Energy - Indonesia
- New Zealand Coal & Carbon
- Star Paper Mills Limited - India
- Mintek Dendrill Indonesia
- Indonesian Coal Mining Association
- Coastal Gujarat Power Limited - India
- Maheswari Brothers Coal Limited - India
- Global Business Power Corporation, Philippines
- MS Steel International - UAE
- Eastern Coal Council - USA
- Bhatia International Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Anglo American - United Kingdom
- Samtan Co., Ltd - South Korea
- Binh Thuan Hamico - Vietnam
- Sinarmas Energy and Mining - Indonesia
- Chettinad Cement Corporation Ltd - India
- Timah Investasi Mineral - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- Romanian Commodities Exchange
- Port Waratah Coal Services - Australia
- Central Electricity Authority - India
- Marubeni Corporation - India
- Savvy Resources Ltd - HongKong
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
- Bharathi Cement Corporation - India
- Independent Power Producers Association of India
- Bukit Baiduri Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Bhushan Steel Limited - India
- Kapuas Tunggal Persada - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Carbofer General Trading SA - India
- Metalloyd Limited - United Kingdom
- Coal and Oil Company - UAE
- Siam City Cement - Thailand
- Ambuja Cements Ltd - India
- Riau Bara Harum - Indonesia
- Indian Oil Corporation Limited
- Pendopo Energi Batubara - Indonesia
- PTC India Limited - India
- Heidelberg Cement - Germany
- Kartika Selabumi Mining - Indonesia
- McConnell Dowell - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Green Power PLC Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Aboitiz Power Corporation - Philippines
- Sarangani Energy Corporation, Philippines
- Coalindo Energy - Indonesia
- Larsen & Toubro Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Finance - Indonesia
- Dalmia Cement Bharat India
- TeaM Sual Corporation - Philippines
- Attock Cement Pakistan Limited
- Directorate General of MIneral and Coal - Indonesia
- Eastern Energy - Thailand
- Indo Tambangraya Megah - Indonesia
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- Vizag Seaport Private Limited - India
- Energy Development Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- Renaissance Capital - South Africa
- Banpu Public Company Limited - Thailand
- Ind-Barath Power Infra Limited - India
- Bhoruka Overseas - Indonesia
- Standard Chartered Bank - UAE
- Mercator Lines Limited - India
- The State Trading Corporation of India Ltd
- Trasteel International SA, Italy
- Semirara Mining and Power Corporation, Philippines
- GVK Power & Infra Limited - India
- Chamber of Mines of South Africa
- Thai Mozambique Logistica
- Ministry of Mines - Canada
- Price Waterhouse Coopers - Russia
- Vedanta Resources Plc - India
- Malabar Cements Ltd - India
- Straits Asia Resources Limited - Singapore
- Bulk Trading Sa - Switzerland
- Orica Mining Services - Indonesia
- Petron Corporation, Philippines
- Altura Mining Limited, Indonesia
- AsiaOL BioFuels Corp., Philippines
- Sojitz Corporation - Japan
- Intertek Mineral Services - Indonesia
- Australian Commodity Traders Exchange
- Electricity Generating Authority of Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bayan Resources Tbk. - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Georgia Ports Authority, United States
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Deloitte Consulting - India
- Posco Energy - South Korea
- Rashtriya Ispat Nigam Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Borneo Indobara - Indonesia
- Sree Jayajothi Cements Limited - India
- Gujarat Mineral Development Corp Ltd - India
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- Uttam Galva Steels Limited - India
- South Luzon Thermal Energy Corporation
- ASAPP Information Group - India
|
| |
| |
|
