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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, 16 October 14
ARE WE GOING TO SHOOT OURSELVES IN THE FOOT ONCE AGAIN? - PANOS MAKRINOS
As the East part of our globe was coming back from its October holidays last week, everyone expected that the Dry Bulk market would follow suit and ...
Wednesday, 15 October 14
PANAMAX: ACTIVITY IN THE PACIFIC WAS UNIMPRESSIVE
The Dry Bulk market noted another weekly decline last week, while the BDI moved below 1,000 points taking down with it expectations that a post hol ...
Wednesday, 15 October 14
INDONESIAN COAL PRICE REFERENCE FELL TO FRESH MULTI-YEAR LOWS IN OCTOBER
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia revised down the coal bench mark price once again in October 2014.
...
Wednesday, 15 October 14
DRY BULK SHIPPING: RATE IMPROVEMENTS ARRIVED AS FORECAST, BUT UNCERTAINTY MOUNTS FOR 2015 DEMAND - BIMCO
BIMCO released its latest short term assessment of the dry bulk market, estimating that over the October-November period, the level of Capesize TC ...
Wednesday, 15 October 14
SHIPOWNER NOT LIABLE FOR CARGO DAMAGE RESULTING FROM POOR STOWAGE - CLYDE & CO
KNOWLEDGE TO ELEVATE
Russian metal trading company Yuzhny Zavod Metall Profil (YZMP), the holder of a CONGEN 1994 bill of lading, took delivery o ...
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Showing 3426 to 3430 news of total 6871 |
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- Manunggal Multi Energi - Indonesia
- Tata Chemicals Ltd - India
- Chamber of Mines of South Africa
- Salva Resources Pvt Ltd - India
- Carbofer General Trading SA - India
- Power Finance Corporation Ltd., India
- Semirara Mining Corp, Philippines
- Siam City Cement PLC, Thailand
- Eastern Coal Council - USA
- CIMB Investment Bank - Malaysia
- Interocean Group of Companies - India
- The State Trading Corporation of India Ltd
- Port Waratah Coal Services - Australia
- Heidelberg Cement - Germany
- Bulk Trading Sa - Switzerland
- The University of Queensland
- Kideco Jaya Agung - Indonesia
- Goldman Sachs - Singapore
- Global Coal Blending Company Limited - Australia
- Riau Bara Harum - Indonesia
- Bangladesh Power Developement Board
- GN Power Mariveles Coal Plant, Philippines
- Cement Manufacturers Association - India
- Central Java Power - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Wood Mackenzie - Singapore
- Bhushan Steel Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Medco Energi Mining Internasional
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Jaiprakash Power Ventures ltd
- Price Waterhouse Coopers - Russia
- Petron Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Grasim Industreis Ltd - India
- Mjunction Services Limited - India
- Rio Tinto Coal - Australia
- Kepco SPC Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Anglo American - United Kingdom
- TeaM Sual Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Latin American Coal - Colombia
- India Bulls Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Tamil Nadu electricity Board
- Petrochimia International Co. Ltd.- Taiwan
- Pipit Mutiara Jaya. PT, Indonesia
- GAC Shipping (India) Pvt Ltd
- Global Business Power Corporation, Philippines
- Indonesian Coal Mining Association
- Binh Thuan Hamico - Vietnam
- SN Aboitiz Power Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Aditya Birla Group - India
- Ceylon Electricity Board - Sri Lanka
- Bhatia International Limited - India
- Metalloyd Limited - United Kingdom
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Transport, Egypt
- Borneo Indobara - Indonesia
- Ministry of Finance - Indonesia
- Intertek Mineral Services - Indonesia
- Savvy Resources Ltd - HongKong
- Australian Commodity Traders Exchange
- Independent Power Producers Association of India
- Sakthi Sugars Limited - India
- Africa Commodities Group - South Africa
- Baramulti Group, Indonesia
- Energy Development Corp, Philippines
- Samtan Co., Ltd - South Korea
- Bukit Makmur.PT - Indonesia
- Meralco Power Generation, Philippines
- Jindal Steel & Power Ltd - India
- Minerals Council of Australia
- San Jose City I Power Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Kartika Selabumi Mining - Indonesia
- Coal and Oil Company - UAE
- Commonwealth Bank - Australia
- GVK Power & Infra Limited - India
- Marubeni Corporation - India
- South Luzon Thermal Energy Corporation
- Kumho Petrochemical, South Korea
- PNOC Exploration Corporation - Philippines
- Electricity Authority, New Zealand
- Leighton Contractors Pty Ltd - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Electricity Generating Authority of Thailand
- Thai Mozambique Logistica
- Indian Energy Exchange, India
- Therma Luzon, Inc, Philippines
- CNBM International Corporation - China
- Billiton Holdings Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Antam Resourcindo - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coastal Gujarat Power Limited - India
- Renaissance Capital - South Africa
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Xindia Steels Limited - India
- Bharathi Cement Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- SMC Global Power, Philippines
- Ministry of Mines - Canada
- Directorate General of MIneral and Coal - Indonesia
- Sindya Power Generating Company Private Ltd
- International Coal Ventures Pvt Ltd - India
- ASAPP Information Group - India
- ICICI Bank Limited - India
- Bayan Resources Tbk. - Indonesia
- Simpson Spence & Young - Indonesia
- Holcim Trading Pte Ltd - Singapore
- PTC India Limited - India
- Semirara Mining and Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- Sree Jayajothi Cements Limited - India
- New Zealand Coal & Carbon
- Sarangani Energy Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- MS Steel International - UAE
- Planning Commission, India
- Edison Trading Spa - Italy
- Karaikal Port Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Toyota Tsusho Corporation, Japan
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- Posco Energy - South Korea
- Globalindo Alam Lestari - Indonesia
- Star Paper Mills Limited - India
- Formosa Plastics Group - Taiwan
- Videocon Industries ltd - India
- Economic Council, Georgia
- Singapore Mercantile Exchange
- Mercuria Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- Attock Cement Pakistan Limited
- Wilmar Investment Holdings
- Orica Mining Services - Indonesia
- London Commodity Brokers - England
- PowerSource Philippines DevCo
- Miang Besar Coal Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- European Bulk Services B.V. - Netherlands
- Asmin Koalindo Tuhup - Indonesia
- Lanco Infratech Ltd - India
- Oldendorff Carriers - Singapore
- Agrawal Coal Company - India
- LBH Netherlands Bv - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Rashtriya Ispat Nigam Limited - India
- Coalindo Energy - Indonesia
- Siam City Cement - Thailand
- Orica Australia Pty. Ltd.
- IEA Clean Coal Centre - UK
- Cigading International Bulk Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- VISA Power Limited - India
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- Maheswari Brothers Coal Limited - India
- OPG Power Generation Pvt Ltd - India
- Thiess Contractors Indonesia
- The Treasury - Australian Government
- Indogreen Group - Indonesia
- Iligan Light & Power Inc, Philippines
- Mercator Lines Limited - India
- Mintek Dendrill Indonesia
- Gujarat Sidhee Cement - India
- Kobexindo Tractors - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Ambuja Cements Ltd - India
- Makarim & Taira - Indonesia
- Vedanta Resources Plc - India
- Kaltim Prima Coal - Indonesia
- White Energy Company Limited
- Pendopo Energi Batubara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Indian Oil Corporation Limited
- Uttam Galva Steels Limited - India
- Standard Chartered Bank - UAE
- Meenaskhi Energy Private Limited - India
- McConnell Dowell - Australia
- Banpu Public Company Limited - Thailand
- Malabar Cements Ltd - India
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Parliament of New Zealand
- SMG Consultants - Indonesia
- Ind-Barath Power Infra Limited - India
- Sojitz Corporation - Japan
- Energy Link Ltd, New Zealand
- Vizag Seaport Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- Eastern Energy - Thailand
- Indo Tambangraya Megah - Indonesia
- Australian Coal Association
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- GMR Energy Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Sical Logistics Limited - India
- Georgia Ports Authority, United States
- Indika Energy - Indonesia
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