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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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Wednesday, 13 August 14
WEEKLY MARKET INSIGHT - KONSTANTINOS KONTOMICHIS SNP BROKER
Being at the peak of the holiday season, August is, as usual, the quietest month in terms of snp transactions, yet it is also a time very critical ...
Wednesday, 13 August 14
WHAT DOES PROJECT CARGO REALLY MEAN TO INSURERS?
KNOWLEDGE TO ELEVATE
Richard Kamppari-Baker, claims manager of FP Marine Risks, explains the challenges of project cargo risk assessment from ...
Wednesday, 13 August 14
INDONESIAN COAL PRICE REFERENCE FALL AGAIN CLOSE TO 57 MONTHS LOWS
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia revised down the coal bench mark price in August. HBA for the month of A ...
Monday, 11 August 14
LARGEST CHINESE TRADE SURPLUS EVER RECORDED IN JULY - BIMCO
China recorded a trade surplus of USD 47.3 billion in July 2014. The record high surplus came on the back of very strong export growth while import ...
Monday, 11 August 14
INDONESIAN THERMAL COAL SWAPS SEEING SOME POSITIVE TREND
COALspot.com: Indonesian coal swaps for average September 2014 increased US$ 0.20 (+0.36%) day on day and US$ 1.30 (+2.41%) per mt week on week. Th ...
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- PNOC Exploration Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- CNBM International Corporation - China
- Globalindo Alam Lestari - Indonesia
- Tamil Nadu electricity Board
- Petron Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Ministry of Finance - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Australian Commodity Traders Exchange
- Romanian Commodities Exchange
- Mercuria Energy - Indonesia
- Jaiprakash Power Ventures ltd
- The University of Queensland
- AsiaOL BioFuels Corp., Philippines
- European Bulk Services B.V. - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GAC Shipping (India) Pvt Ltd
- Leighton Contractors Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- Australian Coal Association
- Siam City Cement - Thailand
- Port Waratah Coal Services - Australia
- Coal and Oil Company - UAE
- Coalindo Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Ambuja Cements Ltd - India
- Madhucon Powers Ltd - India
- Meenaskhi Energy Private Limited - India
- Thiess Contractors Indonesia
- MS Steel International - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- Anglo American - United Kingdom
- The State Trading Corporation of India Ltd
- Sojitz Corporation - Japan
- Semirara Mining and Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Central Java Power - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Oldendorff Carriers - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- Electricity Authority, New Zealand
- Gujarat Electricity Regulatory Commission - India
- Iligan Light & Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- McConnell Dowell - Australia
- Timah Investasi Mineral - Indoneisa
- Orica Australia Pty. Ltd.
- Kepco SPC Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Aditya Birla Group - India
- Mercator Lines Limited - India
- PTC India Limited - India
- Banpu Public Company Limited - Thailand
- Gujarat Sidhee Cement - India
- Rashtriya Ispat Nigam Limited - India
- Goldman Sachs - Singapore
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- International Coal Ventures Pvt Ltd - India
- Grasim Industreis Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Edison Trading Spa - Italy
- Baramulti Group, Indonesia
- Sree Jayajothi Cements Limited - India
- Essar Steel Hazira Ltd - India
- Indogreen Group - Indonesia
- IEA Clean Coal Centre - UK
- Videocon Industries ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Posco Energy - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Xindia Steels Limited - India
- Attock Cement Pakistan Limited
- Bhoruka Overseas - Indonesia
- Heidelberg Cement - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Intertek Mineral Services - Indonesia
- Orica Mining Services - Indonesia
- Star Paper Mills Limited - India
- Ceylon Electricity Board - Sri Lanka
- Bangladesh Power Developement Board
- Vizag Seaport Private Limited - India
- Indonesian Coal Mining Association
- Ind-Barath Power Infra Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Carbofer General Trading SA - India
- Interocean Group of Companies - India
- Sakthi Sugars Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Independent Power Producers Association of India
- Mjunction Services Limited - India
- London Commodity Brokers - England
- Sical Logistics Limited - India
- Kideco Jaya Agung - Indonesia
- Lanco Infratech Ltd - India
- Electricity Generating Authority of Thailand
- Aboitiz Power Corporation - Philippines
- Uttam Galva Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- Ministry of Mines - Canada
- Alfred C Toepfer International GmbH - Germany
- Kohat Cement Company Ltd. - Pakistan
- Indika Energy - Indonesia
- Georgia Ports Authority, United States
- Parry Sugars Refinery, India
- Eastern Coal Council - USA
- Barasentosa Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- Sindya Power Generating Company Private Ltd
- Parliament of New Zealand
- Marubeni Corporation - India
- Trasteel International SA, Italy
- Miang Besar Coal Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- CIMB Investment Bank - Malaysia
- Straits Asia Resources Limited - Singapore
- Merrill Lynch Commodities Europe
- ASAPP Information Group - India
- Eastern Energy - Thailand
- New Zealand Coal & Carbon
- PowerSource Philippines DevCo
- Malabar Cements Ltd - India
- Central Electricity Authority - India
- Cement Manufacturers Association - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- Minerals Council of Australia
- GVK Power & Infra Limited - India
- Riau Bara Harum - Indonesia
- GMR Energy Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Bayan Resources Tbk. - Indonesia
- Larsen & Toubro Limited - India
- Holcim Trading Pte Ltd - Singapore
- Global Business Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Sarangani Energy Corporation, Philippines
- Wilmar Investment Holdings
- TNB Fuel Sdn Bhd - Malaysia
- Bharathi Cement Corporation - India
- Economic Council, Georgia
- Mintek Dendrill Indonesia
- Latin American Coal - Colombia
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- India Bulls Power Limited - India
- The Treasury - Australian Government
- SMG Consultants - Indonesia
- Chamber of Mines of South Africa
- Ministry of Transport, Egypt
- Neyveli Lignite Corporation Ltd, - India
- Kaltim Prima Coal - Indonesia
- Medco Energi Mining Internasional
- Commonwealth Bank - Australia
- Directorate Of Revenue Intelligence - India
- Billiton Holdings Pty Ltd - Australia
- Binh Thuan Hamico - Vietnam
- IHS Mccloskey Coal Group - USA
- Pendopo Energi Batubara - Indonesia
- Agrawal Coal Company - India
- Kumho Petrochemical, South Korea
- Kapuas Tunggal Persada - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Standard Chartered Bank - UAE
- Simpson Spence & Young - Indonesia
- Bukit Makmur.PT - Indonesia
- Metalloyd Limited - United Kingdom
- Altura Mining Limited, Indonesia
- Indian Oil Corporation Limited
- Kobexindo Tractors - Indoneisa
- Formosa Plastics Group - Taiwan
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- South Luzon Thermal Energy Corporation
- SMC Global Power, Philippines
- Maheswari Brothers Coal Limited - India
- Sinarmas Energy and Mining - Indonesia
- White Energy Company Limited
- VISA Power Limited - India
- Indian Energy Exchange, India
- Deloitte Consulting - India
- Kartika Selabumi Mining - Indonesia
- Thai Mozambique Logistica
- Power Finance Corporation Ltd., India
- Planning Commission, India
- Directorate General of MIneral and Coal - Indonesia
- Africa Commodities Group - South Africa
- Jindal Steel & Power Ltd - India
- TeaM Sual Corporation - Philippines
- Bhushan Steel Limited - India
- Dalmia Cement Bharat India
- Singapore Mercantile Exchange
- Vedanta Resources Plc - India
- Tata Chemicals Ltd - India
- Energy Development Corp, Philippines
- Global Coal Blending Company Limited - Australia
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- SN Aboitiz Power Inc, Philippines
- ICICI Bank Limited - India
- Borneo Indobara - Indonesia
- Wood Mackenzie - Singapore
- Meralco Power Generation, Philippines
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