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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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Monday, 30 June 14
INDO - INDIA FREIGHT RATES CONTINUE TO WEAK
COALspot.com: The latest dry Index shows that average all-in spot freight declined, the Panamax and Supramax slipping by 9.11 percent and 4% respec ...
Friday, 27 June 14
DRY BULK MARKET STILL LOOKING FOR UPSIDE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has kept up its lacklustre performance during the past week, as evidenced by the course of the Baltic Dry Index (BDI). The BDI ...
Thursday, 26 June 14
PANAMAX : A PACIFIC ROUND PAYS AROUND US$ 3K DAILY - FEARNLEYS AS
Handy
In the Atlantic there has been little activity which again has caused rates to slip across all trades. TA´s are now down to US$ 5,500 ...
Thursday, 26 June 14
KOMIPO INVITES BIDS FOR TOTAL 750K MT OF BITUMINOUS COAL FOR 3CY
COALspot.com: South Korean state-owned utility Korea Midland Power (KOMIPO) has issued a new tender for supply of total 250,000 MT of bituminous co ...
Thursday, 26 June 14
COAL DIVESTMENT CAMPAIGNS COME WITH RISKY UNINTENDED CONSEQUENCES - WCA
Last week I presented to the Expert Group on investments in coal and petroleum companies, the body set up to advise the Norwegian Government on whe ...
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- SMC Global Power, Philippines
- Coastal Gujarat Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Central Java Power - Indonesia
- Singapore Mercantile Exchange
- Australian Commodity Traders Exchange
- Sical Logistics Limited - India
- Larsen & Toubro Limited - India
- Meenaskhi Energy Private Limited - India
- Alfred C Toepfer International GmbH - Germany
- Global Coal Blending Company Limited - Australia
- Indian Oil Corporation Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Mineral Development Corp Ltd - India
- Agrawal Coal Company - India
- Central Electricity Authority - India
- India Bulls Power Limited - India
- Jindal Steel & Power Ltd - India
- Sojitz Corporation - Japan
- MS Steel International - UAE
- Pendopo Energi Batubara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Orica Australia Pty. Ltd.
- GAC Shipping (India) Pvt Ltd
- Kohat Cement Company Ltd. - Pakistan
- Energy Development Corp, Philippines
- Straits Asia Resources Limited - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PTC India Limited - India
- Mercator Lines Limited - India
- Indian Energy Exchange, India
- CIMB Investment Bank - Malaysia
- GN Power Mariveles Coal Plant, Philippines
- Latin American Coal - Colombia
- Neyveli Lignite Corporation Ltd, - India
- Carbofer General Trading SA - India
- Eastern Energy - Thailand
- OPG Power Generation Pvt Ltd - India
- ICICI Bank Limited - India
- GMR Energy Limited - India
- Medco Energi Mining Internasional
- Indo Tambangraya Megah - Indonesia
- Barasentosa Lestari - Indonesia
- Mercuria Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kapuas Tunggal Persada - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Wood Mackenzie - Singapore
- Borneo Indobara - Indonesia
- Indika Energy - Indonesia
- McConnell Dowell - Australia
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Aditya Birla Group - India
- Asmin Koalindo Tuhup - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Aboitiz Power Corporation - Philippines
- Australian Coal Association
- Romanian Commodities Exchange
- Directorate General of MIneral and Coal - Indonesia
- Global Business Power Corporation, Philippines
- Dalmia Cement Bharat India
- Videocon Industries ltd - India
- Ind-Barath Power Infra Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Trasteel International SA, Italy
- Directorate Of Revenue Intelligence - India
- Bayan Resources Tbk. - Indonesia
- Metalloyd Limited - United Kingdom
- Kumho Petrochemical, South Korea
- Grasim Industreis Ltd - India
- Indonesian Coal Mining Association
- Tata Chemicals Ltd - India
- Posco Energy - South Korea
- Baramulti Group, Indonesia
- Ministry of Finance - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Chettinad Cement Corporation Ltd - India
- Gujarat Sidhee Cement - India
- European Bulk Services B.V. - Netherlands
- PNOC Exploration Corporation - Philippines
- Anglo American - United Kingdom
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- Sakthi Sugars Limited - India
- New Zealand Coal & Carbon
- Orica Mining Services - Indonesia
- Eastern Coal Council - USA
- Malabar Cements Ltd - India
- Uttam Galva Steels Limited - India
- Standard Chartered Bank - UAE
- South Luzon Thermal Energy Corporation
- The Treasury - Australian Government
- Salva Resources Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- The University of Queensland
- Tamil Nadu electricity Board
- Sinarmas Energy and Mining - Indonesia
- Therma Luzon, Inc, Philippines
- The State Trading Corporation of India Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Thiess Contractors Indonesia
- Iligan Light & Power Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Riau Bara Harum - Indonesia
- Lanco Infratech Ltd - India
- AsiaOL BioFuels Corp., Philippines
- White Energy Company Limited
- Siam City Cement - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Globalindo Alam Lestari - Indonesia
- IEA Clean Coal Centre - UK
- Planning Commission, India
- Ministry of Mines - Canada
- Mintek Dendrill Indonesia
- Vedanta Resources Plc - India
- Toyota Tsusho Corporation, Japan
- Electricity Authority, New Zealand
- Maheswari Brothers Coal Limited - India
- Bangladesh Power Developement Board
- GVK Power & Infra Limited - India
- Kartika Selabumi Mining - Indonesia
- Goldman Sachs - Singapore
- Merrill Lynch Commodities Europe
- Kideco Jaya Agung - Indonesia
- Meralco Power Generation, Philippines
- Africa Commodities Group - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Interocean Group of Companies - India
- Deloitte Consulting - India
- Chamber of Mines of South Africa
- Thai Mozambique Logistica
- Sindya Power Generating Company Private Ltd
- Ministry of Transport, Egypt
- Cement Manufacturers Association - India
- Siam City Cement PLC, Thailand
- Rio Tinto Coal - Australia
- Antam Resourcindo - Indonesia
- Minerals Council of Australia
- Power Finance Corporation Ltd., India
- Bhushan Steel Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Ambuja Cements Ltd - India
- ASAPP Information Group - India
- Bulk Trading Sa - Switzerland
- Essar Steel Hazira Ltd - India
- International Coal Ventures Pvt Ltd - India
- Marubeni Corporation - India
- Star Paper Mills Limited - India
- Xindia Steels Limited - India
- Petron Corporation, Philippines
- London Commodity Brokers - England
- Bukit Baiduri Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Georgia Ports Authority, United States
- SMG Consultants - Indonesia
- CNBM International Corporation - China
- Bhoruka Overseas - Indonesia
- Price Waterhouse Coopers - Russia
- Coal and Oil Company - UAE
- Edison Trading Spa - Italy
- Karaikal Port Pvt Ltd - India
- Altura Mining Limited, Indonesia
- PowerSource Philippines DevCo
- Rashtriya Ispat Nigam Limited - India
- Kobexindo Tractors - Indoneisa
- Heidelberg Cement - Germany
- Port Waratah Coal Services - Australia
- Independent Power Producers Association of India
- Simpson Spence & Young - Indonesia
- Kaltim Prima Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- LBH Netherlands Bv - Netherlands
- Ceylon Electricity Board - Sri Lanka
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Energy Link Ltd, New Zealand
- Sree Jayajothi Cements Limited - India
- Jaiprakash Power Ventures ltd
- Madhucon Powers Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- Indogreen Group - Indonesia
- SN Aboitiz Power Inc, Philippines
- Economic Council, Georgia
- Cigading International Bulk Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Parry Sugars Refinery, India
- San Jose City I Power Corp, Philippines
- Intertek Mineral Services - Indonesia
- Global Green Power PLC Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Renaissance Capital - South Africa
- Bukit Makmur.PT - Indonesia
- Oldendorff Carriers - Singapore
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- Coalindo Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Parliament of New Zealand
- Bhatia International Limited - India
- Timah Investasi Mineral - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Samtan Co., Ltd - South Korea
- Vizag Seaport Private Limited - India
- Wilmar Investment Holdings
- Attock Cement Pakistan Limited
- Miang Besar Coal Terminal - Indonesia
- VISA Power Limited - India
- Commonwealth Bank - Australia
- Bharathi Cement Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Electricity Generating Authority of Thailand
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