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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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Friday, 08 August 14
U.S PRODUCED 35.80 MMST OF COAL IN JULY; UP 7.89 MONTH OVER MONTH
COALspot.com – United States the world's second largest coal producer, produced approximately 19.50 million short tons (mmst) of coal in ...
Friday, 08 August 14
PORT OF NEWCASTLE SHIPPED 19.52% MORE COAL IN JULY FROM LAST MONTH
COALspot.com: The Port of Newcastle, Australia’s major trading ports and the world’s largest coal export port, has shipped 14,036,947 t ...
Thursday, 07 August 14
SHORT-TERM COAL OUTLOOK IMPROVES - SAM QUEST
With demand for and supply of coal to grow in the near future, prices are expected to rebound in the short term; the long-term prospects, however, ...
Thursday, 07 August 14
BULKING UP IN AFRICA: CHINA INFLATES SEABORNE MINERALS EXPORT TRADE - RICHARD SCOTT
Africa’s profile as an exporter of dry bulk commodities is rising. Responding to growing import demand from China, India and other buyers in ...
Wednesday, 06 August 14
CAPES: BUSINESS INTEREST REMAINS SOFT; CURRENTLY NO SIGNS OF IMPROVEMENT - INTERMODAL
COALspot.com: Despite the considerable pressure witnessed in the freight market for most of the size segments, the Dry Bulk Index was able to note ...
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- Carbofer General Trading SA - India
- Indian Energy Exchange, India
- Ministry of Transport, Egypt
- Petrochimia International Co. Ltd.- Taiwan
- McConnell Dowell - Australia
- Coal and Oil Company - UAE
- Kalimantan Lumbung Energi - Indonesia
- Simpson Spence & Young - Indonesia
- London Commodity Brokers - England
- Kobexindo Tractors - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Madhucon Powers Ltd - India
- Aditya Birla Group - India
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
- Therma Luzon, Inc, Philippines
- Jaiprakash Power Ventures ltd
- Bukit Baiduri Energy - Indonesia
- Chamber of Mines of South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Dalmia Cement Bharat India
- Eastern Coal Council - USA
- Metalloyd Limited - United Kingdom
- Australian Coal Association
- Bank of Tokyo Mitsubishi UFJ Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- OPG Power Generation Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Edison Trading Spa - Italy
- Antam Resourcindo - Indonesia
- Xindia Steels Limited - India
- San Jose City I Power Corp, Philippines
- Aboitiz Power Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Timah Investasi Mineral - Indoneisa
- Goldman Sachs - Singapore
- PowerSource Philippines DevCo
- Indogreen Group - Indonesia
- Mercuria Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- South Luzon Thermal Energy Corporation
- Kideco Jaya Agung - Indonesia
- Renaissance Capital - South Africa
- Siam City Cement - Thailand
- IEA Clean Coal Centre - UK
- Rio Tinto Coal - Australia
- Gujarat Sidhee Cement - India
- Jorong Barutama Greston.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- MS Steel International - UAE
- Central Electricity Authority - India
- Commonwealth Bank - Australia
- Directorate General of MIneral and Coal - Indonesia
- India Bulls Power Limited - India
- Ind-Barath Power Infra Limited - India
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Energy Development Corp, Philippines
- GMR Energy Limited - India
- CIMB Investment Bank - Malaysia
- Ambuja Cements Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- Coalindo Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Krishnapatnam Port Company Ltd. - India
- European Bulk Services B.V. - Netherlands
- Straits Asia Resources Limited - Singapore
- CNBM International Corporation - China
- Global Business Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Orica Australia Pty. Ltd.
- Leighton Contractors Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Binh Thuan Hamico - Vietnam
- Attock Cement Pakistan Limited
- SMG Consultants - Indonesia
- Sree Jayajothi Cements Limited - India
- Independent Power Producers Association of India
- Kapuas Tunggal Persada - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Sakthi Sugars Limited - India
- Wilmar Investment Holdings
- Oldendorff Carriers - Singapore
- Directorate Of Revenue Intelligence - India
- Power Finance Corporation Ltd., India
- Salva Resources Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Parliament of New Zealand
- Ceylon Electricity Board - Sri Lanka
- New Zealand Coal & Carbon
- Pendopo Energi Batubara - Indonesia
- Kartika Selabumi Mining - Indonesia
- Ministry of Finance - Indonesia
- Economic Council, Georgia
- Star Paper Mills Limited - India
- Meralco Power Generation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Siam City Cement PLC, Thailand
- Parry Sugars Refinery, India
- Energy Link Ltd, New Zealand
- Bukit Makmur.PT - Indonesia
- TeaM Sual Corporation - Philippines
- Bhushan Steel Limited - India
- Port Waratah Coal Services - Australia
- Heidelberg Cement - Germany
- Marubeni Corporation - India
- Trasteel International SA, Italy
- Globalindo Alam Lestari - Indonesia
- Bangladesh Power Developement Board
- Malabar Cements Ltd - India
- Thai Mozambique Logistica
- Africa Commodities Group - South Africa
- Sarangani Energy Corporation, Philippines
- Anglo American - United Kingdom
- Formosa Plastics Group - Taiwan
- VISA Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- ASAPP Information Group - India
- Agrawal Coal Company - India
- Thiess Contractors Indonesia
- Indonesian Coal Mining Association
- Tamil Nadu electricity Board
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- White Energy Company Limited
- Larsen & Toubro Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Toyota Tsusho Corporation, Japan
- Sindya Power Generating Company Private Ltd
- Bulk Trading Sa - Switzerland
- LBH Netherlands Bv - Netherlands
- Electricity Authority, New Zealand
- Kepco SPC Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- GAC Shipping (India) Pvt Ltd
- Price Waterhouse Coopers - Russia
- Altura Mining Limited, Indonesia
- Standard Chartered Bank - UAE
- SMC Global Power, Philippines
- Interocean Group of Companies - India
- Videocon Industries ltd - India
- Baramulti Group, Indonesia
- Jindal Steel & Power Ltd - India
- GVK Power & Infra Limited - India
- Iligan Light & Power Inc, Philippines
- Central Java Power - Indonesia
- Uttam Galva Steels Limited - India
- Ministry of Mines - Canada
- Electricity Generating Authority of Thailand
- The University of Queensland
- Vijayanagar Sugar Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Cement Manufacturers Association - India
- Coastal Gujarat Power Limited - India
- Indo Tambangraya Megah - Indonesia
- Semirara Mining Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Georgia Ports Authority, United States
- Karaikal Port Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Cigading International Bulk Terminal - Indonesia
- Australian Commodity Traders Exchange
- Singapore Mercantile Exchange
- Minerals Council of Australia
- Miang Besar Coal Terminal - Indonesia
- Makarim & Taira - Indonesia
- Lanco Infratech Ltd - India
- Manunggal Multi Energi - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Grasim Industreis Ltd - India
- Bhoruka Overseas - Indonesia
- Posco Energy - South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- PTC India Limited - India
- Petron Corporation, Philippines
- Eastern Energy - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Deloitte Consulting - India
- SN Aboitiz Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Banpu Public Company Limited - Thailand
- Medco Energi Mining Internasional
- Savvy Resources Ltd - HongKong
- Essar Steel Hazira Ltd - India
- Romanian Commodities Exchange
- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- Indika Energy - Indonesia
- Planning Commission, India
- Bayan Resources Tbk. - Indonesia
- Global Coal Blending Company Limited - Australia
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Bharathi Cement Corporation - India
- The Treasury - Australian Government
- Riau Bara Harum - Indonesia
- ICICI Bank Limited - India
- Vedanta Resources Plc - India
- Mercator Lines Limited - India
- Sojitz Corporation - Japan
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