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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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Thursday, 20 November 14
HANDY: INDO ROUNDS ARE BEING FIXED IN REGION OF US$ 10K - FEARNLEYS
Handy
In the Atlantic we have experienced firmer rates this week much lead by the grain activity out of USG. Vsls open in the USG can achieve in ...
Thursday, 20 November 14
DEMAND FOR DRY BULK CARRIERS INCREASES ON THE BACK OF HEIGHTENED FREIGHT RATE MARKET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Ship owners are looking to take advantage of favorable market conditions through the acquisition of more dry bulk carriers. According to shipbroker ...
Wednesday, 19 November 14
INDONESIA FUEL-PRICE RISE A CLEAR, POSITIVE REFORM SIGNAL - FITCH
COALspot.com: Indonesia's hike of more than 30% in administered fuel prices, announced on 17 November, provides a clear, positive signal of the ...
Wednesday, 19 November 14
CAPES WERE UNDER PRESSURE; LOST 20% WITHIN A WEEK
COALspot.com: " The negative environment in which the week prior ended, marked this past week as well, which closed off on Friday noting the f ...
Wednesday, 19 November 14
SHIPPING MARKET INSIGHT - BY KATERINA RESTIS
The current Ebola outbreak in West Africa has been declared as a worldwide health emergency by the World Health Organization and has had a great im ...
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- Merrill Lynch Commodities Europe
- Medco Energi Mining Internasional
- Grasim Industreis Ltd - India
- Larsen & Toubro Limited - India
- Kartika Selabumi Mining - Indonesia
- Vedanta Resources Plc - India
- Manunggal Multi Energi - Indonesia
- Riau Bara Harum - Indonesia
- Dalmia Cement Bharat India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Binh Thuan Hamico - Vietnam
- Samtan Co., Ltd - South Korea
- Economic Council, Georgia
- Bulk Trading Sa - Switzerland
- Kumho Petrochemical, South Korea
- Mintek Dendrill Indonesia
- Aditya Birla Group - India
- Africa Commodities Group - South Africa
- Independent Power Producers Association of India
- Karaikal Port Pvt Ltd - India
- PowerSource Philippines DevCo
- Kalimantan Lumbung Energi - Indonesia
- Central Java Power - Indonesia
- Deloitte Consulting - India
- San Jose City I Power Corp, Philippines
- Ceylon Electricity Board - Sri Lanka
- Singapore Mercantile Exchange
- Global Coal Blending Company Limited - Australia
- Indo Tambangraya Megah - Indonesia
- Eastern Energy - Thailand
- Ministry of Transport, Egypt
- Essar Steel Hazira Ltd - India
- Commonwealth Bank - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rio Tinto Coal - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Baiduri Energy - Indonesia
- Orica Mining Services - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Semirara Mining and Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- GAC Shipping (India) Pvt Ltd
- Borneo Indobara - Indonesia
- Coastal Gujarat Power Limited - India
- Meenaskhi Energy Private Limited - India
- Alfred C Toepfer International GmbH - Germany
- Agrawal Coal Company - India
- Altura Mining Limited, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Chamber of Mines of South Africa
- ASAPP Information Group - India
- Sarangani Energy Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Port Waratah Coal Services - Australia
- Indian Oil Corporation Limited
- Barasentosa Lestari - Indonesia
- Australian Coal Association
- Leighton Contractors Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Indogreen Group - Indonesia
- Metalloyd Limited - United Kingdom
- Malabar Cements Ltd - India
- Goldman Sachs - Singapore
- LBH Netherlands Bv - Netherlands
- Lanco Infratech Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- CIMB Investment Bank - Malaysia
- Siam City Cement PLC, Thailand
- Gujarat Mineral Development Corp Ltd - India
- Minerals Council of Australia
- Formosa Plastics Group - Taiwan
- Siam City Cement - Thailand
- PNOC Exploration Corporation - Philippines
- Antam Resourcindo - Indonesia
- Indian Energy Exchange, India
- Wood Mackenzie - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Cement Manufacturers Association - India
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- Sree Jayajothi Cements Limited - India
- Electricity Generating Authority of Thailand
- Jaiprakash Power Ventures ltd
- Straits Asia Resources Limited - Singapore
- Intertek Mineral Services - Indonesia
- Bharathi Cement Corporation - India
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- CNBM International Corporation - China
- Jindal Steel & Power Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kideco Jaya Agung - Indonesia
- Thai Mozambique Logistica
- Tata Chemicals Ltd - India
- Sojitz Corporation - Japan
- Videocon Industries ltd - India
- PTC India Limited - India
- Thiess Contractors Indonesia
- Renaissance Capital - South Africa
- Gujarat Sidhee Cement - India
- Interocean Group of Companies - India
- Bahari Cakrawala Sebuku - Indonesia
- Iligan Light & Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- London Commodity Brokers - England
- Edison Trading Spa - Italy
- SMG Consultants - Indonesia
- Kaltim Prima Coal - Indonesia
- Wilmar Investment Holdings
- Bangladesh Power Developement Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- India Bulls Power Limited - India
- Banpu Public Company Limited - Thailand
- Makarim & Taira - Indonesia
- Global Green Power PLC Corporation, Philippines
- Ministry of Mines - Canada
- Parliament of New Zealand
- Sakthi Sugars Limited - India
- GN Power Mariveles Coal Plant, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Chettinad Cement Corporation Ltd - India
- New Zealand Coal & Carbon
- Miang Besar Coal Terminal - Indonesia
- Planning Commission, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Standard Chartered Bank - UAE
- Orica Australia Pty. Ltd.
- Attock Cement Pakistan Limited
- Sinarmas Energy and Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- Anglo American - United Kingdom
- Meralco Power Generation, Philippines
- Billiton Holdings Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Indika Energy - Indonesia
- Coalindo Energy - Indonesia
- Bhushan Steel Limited - India
- SN Aboitiz Power Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- OPG Power Generation Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- GVK Power & Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Marubeni Corporation - India
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Global Business Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- The Treasury - Australian Government
- Latin American Coal - Colombia
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Toyota Tsusho Corporation, Japan
- Maheswari Brothers Coal Limited - India
- Ambuja Cements Ltd - India
- SMC Global Power, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Romanian Commodities Exchange
- Xindia Steels Limited - India
- Trasteel International SA, Italy
- Salva Resources Pvt Ltd - India
- White Energy Company Limited
- Sical Logistics Limited - India
- Eastern Coal Council - USA
- Parry Sugars Refinery, India
- Globalindo Alam Lestari - Indonesia
- Bhatia International Limited - India
- Indonesian Coal Mining Association
- Power Finance Corporation Ltd., India
- VISA Power Limited - India
- Petron Corporation, Philippines
- Georgia Ports Authority, United States
- Energy Development Corp, Philippines
- Bhoruka Overseas - Indonesia
- Bukit Makmur.PT - Indonesia
- The University of Queensland
- The State Trading Corporation of India Ltd
- Directorate General of MIneral and Coal - Indonesia
- Mercuria Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Savvy Resources Ltd - HongKong
- Star Paper Mills Limited - India
- Madhucon Powers Ltd - India
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- Australian Commodity Traders Exchange
- MS Steel International - UAE
- Posco Energy - South Korea
- Karbindo Abesyapradhi - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- Holcim Trading Pte Ltd - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kapuas Tunggal Persada - Indonesia
- Oldendorff Carriers - Singapore
- Aboitiz Power Corporation - Philippines
- Ministry of Finance - Indonesia
- Mjunction Services Limited - India
- Carbofer General Trading SA - India
- McConnell Dowell - Australia
- Heidelberg Cement - Germany
- Tamil Nadu electricity Board
- Central Electricity Authority - India
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- GMR Energy Limited - India
- Energy Link Ltd, New Zealand
- Simpson Spence & Young - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Pendopo Energi Batubara - Indonesia
- Uttam Galva Steels Limited - India
- Krishnapatnam Port Company Ltd. - India
- Sindya Power Generating Company Private Ltd
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