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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, 25 September 14
LACK OF COAL BUSINESS PUSHING DOWN PANAMAX EARNINGS IN PACIFIC
Handy
In the Atlantic we see rates steady climbing upwards. More coal cargoes out of USG and USEC are helping the TA market which is up some USD ...
Wednesday, 24 September 14
ADARO AGREED TO REDUCE ITS CONCESSION AREA TO 31,379.8 HECTARES
COALspot.com: PT Adaro Energy Tbk (Adaro Energy) today announced that, PT Adaro Indonesia (AI), its wholly owned subsidiary, entered into a M ...
Wednesday, 24 September 14
CAPESIZE: ACTIVITY IN BOTH BASINS WAS UNIMPRESSIVE
COALspot.com: The end of the week prior seems to have marked the tone for the days that followed, with the Dry Bulk market giving up a significant ...
Tuesday, 23 September 14
MEDCO TO INCREASE ITS COAL PRODUCTION NEXT YEAR
COALspot.com: PT Medco Energi Internasional is looking to increase its coal production next year, supported by the launch of operations at its Duta ...
Monday, 22 September 14
COAL SECTOR CHAOS - GENESIS TO REVELATION - DIPESH DIPU
COALspot.com: “Let there be light”, intends the government of India but the fuel side of the story paints a blackout. The recent Suprem ...
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- Videocon Industries ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Carbofer General Trading SA - India
- Tata Chemicals Ltd - India
- Simpson Spence & Young - Indonesia
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- Globalindo Alam Lestari - Indonesia
- VISA Power Limited - India
- Essar Steel Hazira Ltd - India
- Kumho Petrochemical, South Korea
- Neyveli Lignite Corporation Ltd, - India
- The University of Queensland
- CIMB Investment Bank - Malaysia
- Coal and Oil Company - UAE
- New Zealand Coal & Carbon
- Energy Development Corp, Philippines
- Salva Resources Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- PowerSource Philippines DevCo
- Africa Commodities Group - South Africa
- Baramulti Group, Indonesia
- Sojitz Corporation - Japan
- Sakthi Sugars Limited - India
- Port Waratah Coal Services - Australia
- SN Aboitiz Power Inc, Philippines
- Central Java Power - Indonesia
- Banpu Public Company Limited - Thailand
- Indian Oil Corporation Limited
- Jorong Barutama Greston.PT - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Coastal Gujarat Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- Mintek Dendrill Indonesia
- Ministry of Finance - Indonesia
- Agrawal Coal Company - India
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement PLC, Thailand
- LBH Netherlands Bv - Netherlands
- Indonesian Coal Mining Association
- Latin American Coal - Colombia
- Jaiprakash Power Ventures ltd
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Attock Cement Pakistan Limited
- Meralco Power Generation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rashtriya Ispat Nigam Limited - India
- Minerals Council of Australia
- Kohat Cement Company Ltd. - Pakistan
- Semirara Mining Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- GVK Power & Infra Limited - India
- Iligan Light & Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Bangladesh Power Developement Board
- London Commodity Brokers - England
- GMR Energy Limited - India
- Savvy Resources Ltd - HongKong
- Pipit Mutiara Jaya. PT, Indonesia
- Larsen & Toubro Limited - India
- Bukit Makmur.PT - Indonesia
- Eastern Coal Council - USA
- Riau Bara Harum - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Electricity Generating Authority of Thailand
- Makarim & Taira - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bhoruka Overseas - Indonesia
- Anglo American - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Thai Mozambique Logistica
- Intertek Mineral Services - Indonesia
- Meenaskhi Energy Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Karbindo Abesyapradhi - Indoneisa
- Economic Council, Georgia
- Gujarat Sidhee Cement - India
- Aboitiz Power Corporation - Philippines
- Malabar Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Pendopo Energi Batubara - Indonesia
- Bukit Baiduri Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Parliament of New Zealand
- Jindal Steel & Power Ltd - India
- Thiess Contractors Indonesia
- Georgia Ports Authority, United States
- Miang Besar Coal Terminal - Indonesia
- Lanco Infratech Ltd - India
- Mercuria Energy - Indonesia
- Aditya Birla Group - India
- SMG Consultants - Indonesia
- Central Electricity Authority - India
- Directorate General of MIneral and Coal - Indonesia
- ICICI Bank Limited - India
- Formosa Plastics Group - Taiwan
- Antam Resourcindo - Indonesia
- Chamber of Mines of South Africa
- Directorate Of Revenue Intelligence - India
- Toyota Tsusho Corporation, Japan
- Metalloyd Limited - United Kingdom
- Sree Jayajothi Cements Limited - India
- ASAPP Information Group - India
- Romanian Commodities Exchange
- Ambuja Cements Ltd - India
- Orica Australia Pty. Ltd.
- Kapuas Tunggal Persada - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Coalindo Energy - Indonesia
- Marubeni Corporation - India
- Manunggal Multi Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
- Mercator Lines Limited - India
- Grasim Industreis Ltd - India
- Merrill Lynch Commodities Europe
- Heidelberg Cement - Germany
- Kobexindo Tractors - Indoneisa
- Edison Trading Spa - Italy
- Sical Logistics Limited - India
- Planning Commission, India
- PTC India Limited - India
- Indika Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Electricity Authority, New Zealand
- Chettinad Cement Corporation Ltd - India
- Timah Investasi Mineral - Indoneisa
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- Bhatia International Limited - India
- Xindia Steels Limited - India
- Madhucon Powers Ltd - India
- SMC Global Power, Philippines
- Parry Sugars Refinery, India
- Ministry of Transport, Egypt
- South Luzon Thermal Energy Corporation
- Wilmar Investment Holdings
- PNOC Exploration Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- McConnell Dowell - Australia
- Ind-Barath Power Infra Limited - India
- Barasentosa Lestari - Indonesia
- International Coal Ventures Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- White Energy Company Limited
- Rio Tinto Coal - Australia
- Star Paper Mills Limited - India
- IEA Clean Coal Centre - UK
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Wood Mackenzie - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Kideco Jaya Agung - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Maharashtra Electricity Regulatory Commission - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Medco Energi Mining Internasional
- MS Steel International - UAE
- Goldman Sachs - Singapore
- Karaikal Port Pvt Ltd - India
- Singapore Mercantile Exchange
- European Bulk Services B.V. - Netherlands
- Global Green Power PLC Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Altura Mining Limited, Indonesia
- Bhushan Steel Limited - India
- The Treasury - Australian Government
- Global Business Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Tamil Nadu electricity Board
- Bulk Trading Sa - Switzerland
- Cement Manufacturers Association - India
- Global Coal Blending Company Limited - Australia
- Independent Power Producers Association of India
- CNBM International Corporation - China
- Trasteel International SA, Italy
- Samtan Co., Ltd - South Korea
- Sarangani Energy Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- Indian Energy Exchange, India
- Krishnapatnam Port Company Ltd. - India
- Energy Link Ltd, New Zealand
- Orica Mining Services - Indonesia
- Ministry of Mines - Canada
- Kalimantan Lumbung Energi - Indonesia
- Eastern Energy - Thailand
- Billiton Holdings Pty Ltd - Australia
- Deloitte Consulting - India
- TeaM Sual Corporation - Philippines
- Bharathi Cement Corporation - India
- Mjunction Services Limited - India
- Australian Commodity Traders Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Binh Thuan Hamico - Vietnam
- Posco Energy - South Korea
- Oldendorff Carriers - Singapore
- Kepco SPC Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- Renaissance Capital - South Africa
- Leighton Contractors Pty Ltd - Australia
- Commonwealth Bank - Australia
- Cigading International Bulk Terminal - Indonesia
- India Bulls Power Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- San Jose City I Power Corp, Philippines
- Uttam Galva Steels Limited - India
- Vedanta Resources Plc - India
- Australian Coal Association
- Bayan Resources Tbk. - Indonesia
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