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Monday, 24 November 14
CHOPPY WATERS IN DRY BULK - SGX
 COALspot.com: Dry bulk freight rates have experienced a sharp rise in volatility in recent weeks as bulk commodity supply has ramped up, said SGX in its latest note.
SGX, Singapore Exchange represents the premier access point for managing Asian capital and investment exposure, and is Asia’s most international exchange with more than 40% of companies listed on SGX originating outside of Singapore.
SGX further said, the 30-day annualised volatility of the Baltic Dry Index has surpassed 50%, versus a Q3 average of 37%. This spike in volatility has been primarily driven by Capesize rates, with the Baltic Capesize Index 30-day annualised volatility averaging a staggering 138% so far this month.
According to SGX, year-to-date, the benchmark iron ore price has fallen 48% while thermal coal prices have also steadily declined through the course of the year. Freight rates meanwhile have been extremely volatile, but on average holding well at higher levels. As a result, freight rates have become a much more significant component of delivered iron ore and coal prices.
"In January 2014 for example, the C5 route (Western Australia to China) averaged less than 7% of the benchmark delivered iron ore price into China. At present, the same route makes up more than 13% of the delivered iron ore price. Falling bulk commodity prices have led freight to become a relatively more important consideration along the commodity value chain, and with volatility spiking, effective freight risk management tools have become all the more important," said SGX.
The dry bulk freight market is often subject to severe seasonality, with typically stronger demand through Q4. Iron ore, coal and steel account for about 60% of total dry bulk tonne-miles, according to Clarksons. Seasonality within the seaborne iron ore and thermal coal markets therefore has a significant impact on the dry bulk freight market, as noted by SGX.
SGX further said, Iron ore usually sees strong seaborne trade volumes during Q4 as producers look to maximise exports ahead of seasonal weather-related supply disruptions that often occur in Q1, while the Chinese steel industry typically restocks steelmaking raw materials ahead of the cold winter months/Chinese New Year. Over the past three years, Brazilian and Australian iron ore shipments have on average risen in Q4 (versus Q3) by 9% and 6%, respectively. Thermal coal also usually experiences higher seaborne volumes towards year-end in anticipation of winter as power supply companies look to build inventory. In the past three years, Indonesian and Australian thermal coal exports have on average risen by 17% and 5% respectively in Q4.
With relatively inelastic supply in the dry bulk freight market, these seasonal demand fluctuations can lead to heightened price volatility, and in past years freight rates have often risen in Q4. Indeed, recent prices rises in Capesize and Panamax rates are indicative of such seasonality. That said, uncertainty remains over whether we will see typical seasonal impacts sustained over the coming months. Reasons for such uncertainty and potentially unseasonal trends may include: (i) tight credit availability and ample iron ore port inventory in China, which may limit the degree of seasonal restocking; (ii) Chinese coal imports are declining, and government regulations appear supportive of this trend; and (iii) meteorologists are suggesting a high probability of an El Nino event this year, which may mean drier than usual weather in Australia and Indonesia, and potentially therefore lower than normal weather-related supply disruptions, concluded SGX.
According to SGX, it is managing both commodity & freight on one platform; capital efficiencies through margin optimisation
SGX uniquely provides effective risk management tools to manage both the underlying bulk commodity and freight rate exposures together on the same platform. Furthermore, with all products on one platform SGX is able to offer highly competitive intra-commodity margin offsets. With a range of margin credits across different freight products as well as intra-commodity margin offsets between freight and iron ore, SGX provides a unique value proposition for the clearing of freight and bulk commodity derivatives.
For more details about SGX please click here to visit its official website.
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Saturday, 06 December 14
MUNDRA PORT MAKES HISTORY BY HANDLING THE LARGEST BULK CARRIER TO CALL ON WEST COAST OF INDIA
COALspot.com: Adani Ports & SEZ Ltd, India’s largest port developer and part of Adani Group, yesterday said its Mundra Port successf ...
Friday, 05 December 14
CHINESE SPECIAL STEEL MAKERS' RISK PROFILES MORE RESILIENT - FITCH
Fitch Ratings says the risk profiles of Chinese makers of special steel, especially high-end products, are more like those of manufacturers and mor ...
Friday, 05 December 14
U.S. YEAR-TO-DATE COAL PRODUCTION REACHED AROUND 905 MMST - EIA
COALspot.com – United States the world's one of the largest coal producers, produced approximately 19 million short tons (mmst) of coal i ...
Thursday, 04 December 14
CAPE MARKET IS DEVELOPING FROM BAD TO WORSE
Handy
The Atlantic market has been pretty stable and balanced this week, Fearnleys AS says in its latest weekly report.
The broker furt ...
Thursday, 04 December 14
DRY BULK MARKET; ANOTHER DISAPPOINTING WEEK
COALspot.com: For those who have been hoping to see alignment of freight direction across the Dry Bulk market, this must have been another disappoi ...
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- Bhushan Steel Limited - India
- Tamil Nadu electricity Board
- The State Trading Corporation of India Ltd
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Directorate Of Revenue Intelligence - India
- Rashtriya Ispat Nigam Limited - India
- Minerals Council of Australia
- India Bulls Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Bharathi Cement Corporation - India
- VISA Power Limited - India
- Eastern Energy - Thailand
- Electricity Generating Authority of Thailand
- Asmin Koalindo Tuhup - Indonesia
- Jaiprakash Power Ventures ltd
- International Coal Ventures Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Attock Cement Pakistan Limited
- Trasteel International SA, Italy
- Kumho Petrochemical, South Korea
- Altura Mining Limited, Indonesia
- Global Coal Blending Company Limited - Australia
- Riau Bara Harum - Indonesia
- Coastal Gujarat Power Limited - India
- Thiess Contractors Indonesia
- Gujarat Sidhee Cement - India
- Energy Link Ltd, New Zealand
- Siam City Cement PLC, Thailand
- Iligan Light & Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Orica Australia Pty. Ltd.
- Agrawal Coal Company - India
- ICICI Bank Limited - India
- Billiton Holdings Pty Ltd - Australia
- Semirara Mining Corp, Philippines
- Essar Steel Hazira Ltd - India
- Kepco SPC Power Corporation, Philippines
- Romanian Commodities Exchange
- Bhatia International Limited - India
- CNBM International Corporation - China
- Bank of Tokyo Mitsubishi UFJ Ltd
- Latin American Coal - Colombia
- Mjunction Services Limited - India
- Australian Commodity Traders Exchange
- Georgia Ports Authority, United States
- Star Paper Mills Limited - India
- Port Waratah Coal Services - Australia
- Economic Council, Georgia
- Manunggal Multi Energi - Indonesia
- Binh Thuan Hamico - Vietnam
- Indonesian Coal Mining Association
- IHS Mccloskey Coal Group - USA
- Kapuas Tunggal Persada - Indonesia
- Rio Tinto Coal - Australia
- Krishnapatnam Port Company Ltd. - India
- Bayan Resources Tbk. - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Carbofer General Trading SA - India
- TNB Fuel Sdn Bhd - Malaysia
- Grasim Industreis Ltd - India
- Oldendorff Carriers - Singapore
- Kobexindo Tractors - Indoneisa
- Interocean Group of Companies - India
- The Treasury - Australian Government
- Thai Mozambique Logistica
- Sindya Power Generating Company Private Ltd
- SMG Consultants - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Parry Sugars Refinery, India
- Independent Power Producers Association of India
- SMC Global Power, Philippines
- Maheswari Brothers Coal Limited - India
- Dalmia Cement Bharat India
- Samtan Co., Ltd - South Korea
- Straits Asia Resources Limited - Singapore
- Formosa Plastics Group - Taiwan
- Heidelberg Cement - Germany
- Bulk Trading Sa - Switzerland
- Indika Energy - Indonesia
- New Zealand Coal & Carbon
- Vizag Seaport Private Limited - India
- Ministry of Mines - Canada
- Renaissance Capital - South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sakthi Sugars Limited - India
- Globalindo Alam Lestari - Indonesia
- Chamber of Mines of South Africa
- Global Business Power Corporation, Philippines
- Mercuria Energy - Indonesia
- Electricity Authority, New Zealand
- Metalloyd Limited - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- San Jose City I Power Corp, Philippines
- Price Waterhouse Coopers - Russia
- Ministry of Finance - Indonesia
- Malabar Cements Ltd - India
- Petron Corporation, Philippines
- Energy Development Corp, Philippines
- Makarim & Taira - Indonesia
- Sojitz Corporation - Japan
- PNOC Exploration Corporation - Philippines
- Edison Trading Spa - Italy
- Goldman Sachs - Singapore
- Gujarat Electricity Regulatory Commission - India
- Planning Commission, India
- Timah Investasi Mineral - Indoneisa
- Borneo Indobara - Indonesia
- Standard Chartered Bank - UAE
- Siam City Cement - Thailand
- Intertek Mineral Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- Bangladesh Power Developement Board
- Ind-Barath Power Infra Limited - India
- Meenaskhi Energy Private Limited - India
- GMR Energy Limited - India
- Central Electricity Authority - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Antam Resourcindo - Indonesia
- ASAPP Information Group - India
- Baramulti Group, Indonesia
- Larsen & Toubro Limited - India
- Orica Mining Services - Indonesia
- The University of Queensland
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Leighton Contractors Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- Tata Chemicals Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Bukit Makmur.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Ambuja Cements Ltd - India
- GAC Shipping (India) Pvt Ltd
- Kartika Selabumi Mining - Indonesia
- Cement Manufacturers Association - India
- Anglo American - United Kingdom
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- Toyota Tsusho Corporation, Japan
- LBH Netherlands Bv - Netherlands
- Wood Mackenzie - Singapore
- Jorong Barutama Greston.PT - Indonesia
- GVK Power & Infra Limited - India
- Medco Energi Mining Internasional
- Ministry of Transport, Egypt
- Coal and Oil Company - UAE
- Africa Commodities Group - South Africa
- Mercator Lines Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Bhoruka Overseas - Indonesia
- Coalindo Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Ceylon Electricity Board - Sri Lanka
- Sree Jayajothi Cements Limited - India
- Lanco Infratech Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kideco Jaya Agung - Indonesia
- Karaikal Port Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- PTC India Limited - India
- Sarangani Energy Corporation, Philippines
- White Energy Company Limited
- Central Java Power - Indonesia
- Singapore Mercantile Exchange
- Aboitiz Power Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Madhucon Powers Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Aditya Birla Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Indogreen Group - Indonesia
- SN Aboitiz Power Inc, Philippines
- Deloitte Consulting - India
- Salva Resources Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Kaltim Prima Coal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Wilmar Investment Holdings
- McConnell Dowell - Australia
- PetroVietnam Power Coal Import and Supply Company
- Marubeni Corporation - India
- Cigading International Bulk Terminal - Indonesia
- Uttam Galva Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Meralco Power Generation, Philippines
- Xindia Steels Limited - India
- Savvy Resources Ltd - HongKong
- Indian Oil Corporation Limited
- Neyveli Lignite Corporation Ltd, - India
- Sinarmas Energy and Mining - Indonesia
- Mintek Dendrill Indonesia
- Vedanta Resources Plc - India
- PowerSource Philippines DevCo
- IEA Clean Coal Centre - UK
- Australian Coal Association
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Eastern Coal Council - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parliament of New Zealand
- Banpu Public Company Limited - Thailand
- Videocon Industries ltd - India
- Indian Energy Exchange, India
- London Commodity Brokers - England
- Karbindo Abesyapradhi - Indoneisa
- Power Finance Corporation Ltd., India
- TeaM Sual Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- MS Steel International - UAE
- Petrochimia International Co. Ltd.- Taiwan
- Global Green Power PLC Corporation, Philippines
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