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Friday, 19 September 14
PRICES FOR DRY BULK CARRIERS HAVEN'T CORRECTED ENOUGH, DESPITE LOWER THAN EXPECTED FREIGHT RATES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 A lot has been said and written about the looming dry bulk market recovery over the past few months. However, even if this hasn’t been materialized, at least not yet, prices for dry bulk carriers haven’t abated that much. According to the latest report from shipbroker Intermodal this is due to a number of reasons, namely the overabundance of financing, given the rapid emergence of private equity funds, as well as the sellers’ expectations.
According to Intermodal’s weekly report, “cince the onslaught of 2013 the rising tide of asset prices had been primarily driven by the increasing freight market conditions and the improving sentiment as to the future prospects of the Dry Bulk markets. Having put behind them the “lean” years of 2011 and 2012, owners were starting to feel more confident about the conditions they would face moving forward. Many saw a more balanced market were the ore reasonable delivery schedule of newbuildings (compared to that of 2012) would be met with the equal demand growth that they had been accustomed to during the period post the 2008 crisis”.
Intermodal’s Research Analyst, Mr. George Lazaridis noted that, “this was a fairly reasonable assumption as there seemed to be nothing in sight that could stop the insatiable appetite from the developing economies for further growth and higher consumption of raw materials. This all proved the more reasonable when just at the start of the final quarter of 2013 a major rally in the freight markets started to take place, bringing earnings to levels that were long forgotten”.
Yet, as he noted “this rosy picture painted by many in their mind was already breaking at the seams. The freight market started to plummet back down to the levels seen in early 2013 and whispers started to emerge of an imminent slowdown in growth by the dry bulk’s major driving economy, namely China. Yet this did not seem to have the strong impact many would have anticipated in the secondhand market. Prices continued to climb at an extraordinary rate peaking late April early May, despite the fact that a promise of a strong spring market never materialized. Yet even after this, the correction was only marginal”.
So why is there still such optimism amongst buyers? and more specifically why still for the larger Capesize vessels? These are the questions posed rightfully so by the shipbroker’s analyst. According to Mr. Lazaridis, “many may be still convinced that appetite will still be there going forward for both iron ore and coal by the world’s second largest economy. In all truth there may well be a new stimulus plan just around the corner and things may well get back on track with regards to demand. But it seems there is a more indirect cause at play here.
While the continual increase in asset prices may be seen as a reflection of a more bullish approach by investors, it seems to be more the excess of financing and the high price ideas held by the few available sellers in the market. With regards to the former, one must not forget that finance was not easily available during 2011-2012, especially for secondhand purchases and as a consequence the large influx of cash has made most buyers willing to splash out more in order to fuel their expansion plans. This will inevitably have some consequences going forward as most of this readily available cash comes at a much higher cost then what the traditional bank driven finance would have”, he noted.
Lazaridis concluded that “as to the side of the sellers, there are few out there willing to part with their assets at lower prices than they have been used to seeing over the past couple of months, and holding a more optimistic view themselves, they are only truly willing sellers at the currently prevailing prices. The question that holds is how long will this new price reality hold? And will freight rates eventually show the recovery all these prospective buyers are hoping for?”, he wondered.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Tuesday, 16 September 14
INDONESIAN GOVERNMENT DECLARED HBA SUFFERED ANOTHER SETBACK IN SEPTEMBER
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia revised down the coal bench mark price once again in September. HBA for ...
Tuesday, 16 September 14
INDONESIAN COAL OUTPUT WON'T EXCEED 421M TONS: GOVT - JP
The government is optimistic that it will meet its coal production target for this year, which caps nationwide production at a flat number compared ...
Monday, 15 September 14
CHINA'S COAL PROPOSALS LEAVE SOME HOPE FOR EXPORTERS - DAILY NEWS
When the best thing you can say about new policies is that they aren’t as bad as they could have been, then you know your industry is in deep ...
Monday, 15 September 14
SUB-BIT FOB INDONESIA COAL SWAP, JANUARY 2015 DELIVERY GAINED DAY ON DAY AND WEEK ON WEEK
COALspot.com: Indonesian coal swaps for average October 2014 increased US$ 0.40 (+0.78%) day on day and US$ 0.55 (+1.08%) per mt week on week. The ...
Monday, 15 September 14
CFR SOUTH CHINA COAL SWAP GAINED DAY ON DAY AND WEEK ON WEEK
COALspot.com: API 8 CFR South China Coal swap for delivery in October 2014 decreased US$ 2.30 (-3.36%) month over month, but increased day on day a ...
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- Central Electricity Authority - India
- New Zealand Coal & Carbon
- Sarangani Energy Corporation, Philippines
- Uttam Galva Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
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- Altura Mining Limited, Indonesia
- Karaikal Port Pvt Ltd - India
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- Baramulti Group, Indonesia
- IEA Clean Coal Centre - UK
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- Holcim Trading Pte Ltd - Singapore
- Kohat Cement Company Ltd. - Pakistan
- South Luzon Thermal Energy Corporation
- Bharathi Cement Corporation - India
- Binh Thuan Hamico - Vietnam
- Interocean Group of Companies - India
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- Standard Chartered Bank - UAE
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- Thiess Contractors Indonesia
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- GVK Power & Infra Limited - India
- Eastern Coal Council - USA
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Bukit Baiduri Energy - Indonesia
- Grasim Industreis Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Attock Cement Pakistan Limited
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Mines - Canada
- Orica Mining Services - Indonesia
- CIMB Investment Bank - Malaysia
- Timah Investasi Mineral - Indoneisa
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- Kideco Jaya Agung - Indonesia
- Meralco Power Generation, Philippines
- Malabar Cements Ltd - India
- Bangladesh Power Developement Board
- Simpson Spence & Young - Indonesia
- Jaiprakash Power Ventures ltd
- Electricity Generating Authority of Thailand
- Port Waratah Coal Services - Australia
- Alfred C Toepfer International GmbH - Germany
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- TeaM Sual Corporation - Philippines
- Parry Sugars Refinery, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Riau Bara Harum - Indonesia
- Madhucon Powers Ltd - India
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- European Bulk Services B.V. - Netherlands
- Sical Logistics Limited - India
- Barasentosa Lestari - Indonesia
- Gujarat Sidhee Cement - India
- OPG Power Generation Pvt Ltd - India
- Makarim & Taira - Indonesia
- The University of Queensland
- SMG Consultants - Indonesia
- LBH Netherlands Bv - Netherlands
- Billiton Holdings Pty Ltd - Australia
- Leighton Contractors Pty Ltd - Australia
- Bhushan Steel Limited - India
- Edison Trading Spa - Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Borneo Indobara - Indonesia
- Price Waterhouse Coopers - Russia
- Indo Tambangraya Megah - Indonesia
- Aditya Birla Group - India
- MS Steel International - UAE
- Power Finance Corporation Ltd., India
- Central Java Power - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Coastal Gujarat Power Limited - India
- Ind-Barath Power Infra Limited - India
- Independent Power Producers Association of India
- Marubeni Corporation - India
- PowerSource Philippines DevCo
- Commonwealth Bank - Australia
- Bukit Makmur.PT - Indonesia
- Wilmar Investment Holdings
- Siam City Cement - Thailand
- Manunggal Multi Energi - Indonesia
- Jindal Steel & Power Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- Orica Australia Pty. Ltd.
- IHS Mccloskey Coal Group - USA
- Chamber of Mines of South Africa
- GAC Shipping (India) Pvt Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Chettinad Cement Corporation Ltd - India
- Singapore Mercantile Exchange
- Lanco Infratech Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Bulk Trading Sa - Switzerland
- Maharashtra Electricity Regulatory Commission - India
- Globalindo Alam Lestari - Indonesia
- Agrawal Coal Company - India
- Minerals Council of Australia
- Planning Commission, India
- VISA Power Limited - India
- Cement Manufacturers Association - India
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Indian Oil Corporation Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ICICI Bank Limited - India
- Vedanta Resources Plc - India
- Metalloyd Limited - United Kingdom
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- Global Business Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Rashtriya Ispat Nigam Limited - India
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Heidelberg Cement - Germany
- Jorong Barutama Greston.PT - Indonesia
- India Bulls Power Limited - India
- Semirara Mining Corp, Philippines
- SMC Global Power, Philippines
- Bayan Resources Tbk. - Indonesia
- Banpu Public Company Limited - Thailand
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- Videocon Industries ltd - India
- PNOC Exploration Corporation - Philippines
- Vizag Seaport Private Limited - India
- London Commodity Brokers - England
- Sree Jayajothi Cements Limited - India
- Savvy Resources Ltd - HongKong
- TNB Fuel Sdn Bhd - Malaysia
- Tata Chemicals Ltd - India
- Petron Corporation, Philippines
- Rio Tinto Coal - Australia
- Goldman Sachs - Singapore
- Oldendorff Carriers - Singapore
- Aboitiz Power Corporation - Philippines
- Ambuja Cements Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Essar Steel Hazira Ltd - India
- Antam Resourcindo - Indonesia
- White Energy Company Limited
- Sakthi Sugars Limited - India
- Indian Energy Exchange, India
- Parliament of New Zealand
- Kapuas Tunggal Persada - Indonesia
- Anglo American - United Kingdom
- Larsen & Toubro Limited - India
- Semirara Mining and Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Trasteel International SA, Italy
- Posco Energy - South Korea
- Gujarat Mineral Development Corp Ltd - India
- Coalindo Energy - Indonesia
- Kumho Petrochemical, South Korea
- Economic Council, Georgia
- The State Trading Corporation of India Ltd
- Indonesian Coal Mining Association
- McConnell Dowell - Australia
- Coal and Oil Company - UAE
- Thai Mozambique Logistica
- Offshore Bulk Terminal Pte Ltd, Singapore
- Formosa Plastics Group - Taiwan
- Carbofer General Trading SA - India
- Kobexindo Tractors - Indoneisa
- Sojitz Corporation - Japan
- Iligan Light & Power Inc, Philippines
- ASAPP Information Group - India
- Deloitte Consulting - India
- The Treasury - Australian Government
- Indogreen Group - Indonesia
- Bhatia International Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Meenaskhi Energy Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Tamil Nadu electricity Board
- Sinarmas Energy and Mining - Indonesia
- Therma Luzon, Inc, Philippines
- Electricity Authority, New Zealand
- GMR Energy Limited - India
- Africa Commodities Group - South Africa
- SN Aboitiz Power Inc, Philippines
- Australian Coal Association
- PTC India Limited - India
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- Mintek Dendrill Indonesia
- Eastern Energy - Thailand
- Latin American Coal - Colombia
- Salva Resources Pvt Ltd - India
- Bhoruka Overseas - Indonesia
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Romanian Commodities Exchange
- Kepco SPC Power Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Energy Development Corp, Philippines
- Medco Energi Mining Internasional
- Mercator Lines Limited - India
- Merrill Lynch Commodities Europe
- Mercuria Energy - Indonesia
- Straits Asia Resources Limited - Singapore
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