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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, 30 August 14
RECOVERY IN SIGHT FOR THE DRY BULK SHIPPING MARKET - DREWRY SHIPPING CONSULTANTS
Despite weak freight rates so far this year, Dry Bulk shipping earnings are forecast to recover as demand for both major and minor bulk commodities ...
Friday, 29 August 14
U.S. WEEKLY COAL PRODUCTION DROPS 1.3 PERCENT, EIA SAYS
COALspot.com – United States the world's second largest coal producer, produced approximately 19.40 million short tons (mmst) of coal in ...
Friday, 29 August 14
ADARO'S PROFITS SINK FURTHER AMID FALL IN COAL PRICES - JP
Adaro Energy, one of the country’s largest coal miners, has reported a 31 percent drop in net profit in the first half of this year as global ...
Friday, 29 August 14
CHINESE LIGNITE IMPORTS: QUANTITY OVER QUALITY? - CLARKSONS
In the first half of 2014, Chinese seaborne coal imports declined 0.4% y-o-y to 148mt, largely reflecting a 3.3% fall in imports of steam coal. Mea ...
Thursday, 28 August 14
PANAMAX: OWNERS CAN GET AROUND USD 16000 FOR A FRONTHAUL; PERIOD MARKET - VERY QUIET - FEARNLEYS
Handy
The activity and sentiment is improving in the Atlantic with the general TA rate is up about US$ 800 w-o-w. We see more South American carg ...
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- International Coal Ventures Pvt Ltd - India
- Attock Cement Pakistan Limited
- Petrochimia International Co. Ltd.- Taiwan
- SMC Global Power, Philippines
- Kideco Jaya Agung - Indonesia
- Price Waterhouse Coopers - Russia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vedanta Resources Plc - India
- Bulk Trading Sa - Switzerland
- Bayan Resources Tbk. - Indonesia
- Mercator Lines Limited - India
- Semirara Mining Corp, Philippines
- Tamil Nadu electricity Board
- Iligan Light & Power Inc, Philippines
- The University of Queensland
- Romanian Commodities Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- Trasteel International SA, Italy
- Wood Mackenzie - Singapore
- Global Green Power PLC Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Aboitiz Power Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Samtan Co., Ltd - South Korea
- AsiaOL BioFuels Corp., Philippines
- Global Coal Blending Company Limited - Australia
- Africa Commodities Group - South Africa
- Mjunction Services Limited - India
- Indo Tambangraya Megah - Indonesia
- Ind-Barath Power Infra Limited - India
- Bukit Makmur.PT - Indonesia
- Mintek Dendrill Indonesia
- Deloitte Consulting - India
- Gujarat Electricity Regulatory Commission - India
- Bangladesh Power Developement Board
- Parliament of New Zealand
- MS Steel International - UAE
- Holcim Trading Pte Ltd - Singapore
- Energy Development Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Dalmia Cement Bharat India
- Intertek Mineral Services - Indonesia
- SMG Consultants - Indonesia
- European Bulk Services B.V. - Netherlands
- Goldman Sachs - Singapore
- Borneo Indobara - Indonesia
- Thai Mozambique Logistica
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Oil Corporation Limited
- Carbofer General Trading SA - India
- Merrill Lynch Commodities Europe
- Australian Coal Association
- Kumho Petrochemical, South Korea
- Coal and Oil Company - UAE
- San Jose City I Power Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Meralco Power Generation, Philippines
- VISA Power Limited - India
- CNBM International Corporation - China
- Antam Resourcindo - Indonesia
- Cement Manufacturers Association - India
- Port Waratah Coal Services - Australia
- Manunggal Multi Energi - Indonesia
- Vizag Seaport Private Limited - India
- Madhucon Powers Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- The State Trading Corporation of India Ltd
- Rashtriya Ispat Nigam Limited - India
- Central Java Power - Indonesia
- Simpson Spence & Young - Indonesia
- Pendopo Energi Batubara - Indonesia
- PTC India Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Power Finance Corporation Ltd., India
- Globalindo Alam Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- The Treasury - Australian Government
- Baramulti Group, Indonesia
- New Zealand Coal & Carbon
- Leighton Contractors Pty Ltd - Australia
- Central Electricity Authority - India
- Chamber of Mines of South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Kalimantan Lumbung Energi - Indonesia
- LBH Netherlands Bv - Netherlands
- Indogreen Group - Indonesia
- Siam City Cement - Thailand
- PNOC Exploration Corporation - Philippines
- Anglo American - United Kingdom
- Bukit Asam (Persero) Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Eastern Energy - Thailand
- Sakthi Sugars Limited - India
- Mercuria Energy - Indonesia
- Eastern Coal Council - USA
- Formosa Plastics Group - Taiwan
- Tata Chemicals Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Sindya Power Generating Company Private Ltd
- OPG Power Generation Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- ICICI Bank Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bharathi Cement Corporation - India
- Sical Logistics Limited - India
- Grasim Industreis Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Sarangani Energy Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Wilmar Investment Holdings
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- TeaM Sual Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coalindo Energy - Indonesia
- Makarim & Taira - Indonesia
- Independent Power Producers Association of India
- Coastal Gujarat Power Limited - India
- SN Aboitiz Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Ministry of Finance - Indonesia
- Minerals Council of Australia
- Indian Energy Exchange, India
- Cigading International Bulk Terminal - Indonesia
- Altura Mining Limited, Indonesia
- Medco Energi Mining Internasional
- Kartika Selabumi Mining - Indonesia
- Lanco Infratech Ltd - India
- ASAPP Information Group - India
- Indika Energy - Indonesia
- Latin American Coal - Colombia
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- Karaikal Port Pvt Ltd - India
- India Bulls Power Limited - India
- Sree Jayajothi Cements Limited - India
- White Energy Company Limited
- GAC Shipping (India) Pvt Ltd
- Meenaskhi Energy Private Limited - India
- Orica Australia Pty. Ltd.
- Maheswari Brothers Coal Limited - India
- Singapore Mercantile Exchange
- Ambuja Cements Ltd - India
- Economic Council, Georgia
- PowerSource Philippines DevCo
- Videocon Industries ltd - India
- Chettinad Cement Corporation Ltd - India
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- Savvy Resources Ltd - HongKong
- Bukit Baiduri Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Standard Chartered Bank - UAE
- IHS Mccloskey Coal Group - USA
- Metalloyd Limited - United Kingdom
- Bhoruka Overseas - Indonesia
- Global Business Power Corporation, Philippines
- Planning Commission, India
- Toyota Tsusho Corporation, Japan
- Jaiprakash Power Ventures ltd
- Indonesian Coal Mining Association
- Xindia Steels Limited - India
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- Parry Sugars Refinery, India
- Marubeni Corporation - India
- Miang Besar Coal Terminal - Indonesia
- Petron Corporation, Philippines
- London Commodity Brokers - England
- Bank of Tokyo Mitsubishi UFJ Ltd
- Georgia Ports Authority, United States
- Billiton Holdings Pty Ltd - Australia
- Ceylon Electricity Board - Sri Lanka
- Asmin Koalindo Tuhup - Indonesia
- Posco Energy - South Korea
- Salva Resources Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Agrawal Coal Company - India
- Heidelberg Cement - Germany
- GVK Power & Infra Limited - India
- Orica Mining Services - Indonesia
- Jindal Steel & Power Ltd - India
- Sojitz Corporation - Japan
- Banpu Public Company Limited - Thailand
- South Luzon Thermal Energy Corporation
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- Uttam Galva Steels Limited - India
- Bhatia International Limited - India
- GMR Energy Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- Thiess Contractors Indonesia
- Kepco SPC Power Corporation, Philippines
- Ministry of Mines - Canada
- Edison Trading Spa - Italy
- Kapuas Tunggal Persada - Indonesia
- Commonwealth Bank - Australia
- Essar Steel Hazira Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Sidhee Cement - India
- TNB Fuel Sdn Bhd - Malaysia
- Bhushan Steel Limited - India
- Rio Tinto Coal - Australia
- Interocean Group of Companies - India
- Sinarmas Energy and Mining - Indonesia
- Star Paper Mills Limited - India
- CIMB Investment Bank - Malaysia
- Aditya Birla Group - India
- Riau Bara Harum - Indonesia
- Oldendorff Carriers - Singapore
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