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Friday, 10 April 15
DRY BULK MARKET'S DOWNFALL ALSO OFFER INVESTMENT BARGAINS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
 Dry bulk market rates have fallen to historical lows over the past few weeks, with no clear path of recovery, at least in the near term. As such, most ship owners are finding themselves caught “between a rock and hard place”. But is it really this the case? Some shipbrokers believe that the current market environment has also one important side effect, the fall of asset prices, which means that dry bulk ships are getting cheaper by the day. As such, cash-rich ship owners could easily take advantage of knock down prices, especially as more and more distressed sales could emerge in the coming weeks.
According to the latest report from shipbroker Allied Shipbroking, “while dry bulk owners start to feel that they have managed to get out of one bad patch, everyone starts to point at yet another up ahead. It seems to be a perfect storm unfolding and one that many will claim was more than expected. Yet amidst poor sentiment in the freight market is were real opportunity is born. The market will eventually recovery and those who manage to take the right pickings during the bottom are often herald as the pioneers and holders of true foresight of what lays ahead. However it is never as clear as that. Taking on any investment decision, as things stand now, seems to be bor-derline crazy. Earnings are hovering at around OPEX levels, often with owners search-ing into their own pockets in order to cover the cost of voyages they have fixed”, said Mr. George Lazaridis, Head of Market Research & Asset Valuations.
He added that “amidst all this pessimism is where you will also find sufficient discounts in the prices of secondhand assets which will provide the ample promise for reward that would com-pensate the current risk. One such size segment that shows to have a good ratio of risk against potential reward is that of the Hadysize vessels and particularly modern vessels on the larger end of the size spectrum (ie.35-38,000dwt). Prices for these assets have never been lower and compared to placing a new contracting on one of the “hungry for orders” shipyards, the discount is more than enough. At a price of US$ 13.5m for a 5 year old unit you get a discount of close to 40% which is equal to close to 8% deprecia-tion in value per year. But one may ask, why is this any different to the larger Supras and Panamaxes which offer similar if not better discounts on modern units?”.
“Handysize vessels seem to hold one more ace up the sleeve. Last month we witnessed yet another drop in size of the fleet in terms of number of vessels. The fleet now stands now stands at 2,437 which is only 3 more vessels then what there was on the 1st of January 2015. This becomes all the more noteworthy when you consider that this has happened during a period in the year were new building deliveries are more intense (everyone wants to benefit from having their vessel written as built in the new year), while also worth noting is the limited orderbook compared to the strong number of vessels in the fleet which are currently over 25 years of age”, said Lazaridis.
Earlier in the week, ship owner Pacific Basin, which is focused in the smaller ship classes, said that “in the Handysize and Handymax segments, where “market spot rates averaged US$5,070 and US$6,110 per day net respectively in the first quarter of 2015, representing a 45% reduction in average rates compared to the same period last year. Newbuilding deliveries deferred from 2014 into January and February coincided with the lunar new year holidays seasonal demand slowdown in China and seasonal export disruptions in key trade areas. Together, these pulled the Baltic Dry Index (BDI) to its lowest since indices began in 1985. However, spot market rates for Handysize and Handymax vessels have gradually improved since lunar new year, albeit from a very low base”, concluded Pacific Basin”.
Lazaridis concluded his analysis by noting that “all this put together allows for better prospects and in essence lower risk while providing comparatively similar asset play returns (in percentage terms) with that of the larger sizes. To close off, it is always worth noting that there is a bright side to every market slump as there is also a dark side to every market boom. Both need caution and proper estimating of the kind of risk/reward one engages with”.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Wednesday, 20 May 15
TANKER MARKET INSIGHT - JOHN N. COTZIAS
Since Early October 2014 the tanker market has been experiencing a very positive momentum and has continued its strong performance so far in 2015. ...
Wednesday, 20 May 15
FOB RICHARDS BAY COAL SWAPS GAINED M-O-M, W-O-W
COALspot.com: API4 FOB Richards Bay Coal swap for delivery Q3' 2015 increased month over month and week over week.
The Q3 swap has increas ...
Wednesday, 20 May 15
BUKIT ASAM'S AVERAGE EXPORT PRICE WAS UNDER PRESSURE DURING Q1
COALspot.com: Indonesia’s state owned coal producer saw their profits fall in the first quarter of the year compared to the same period last ...
Wednesday, 20 May 15
IRON ORE PRICES TO REMAIN WEAK ON LOW DEMAND, HIGH OUTPUT - FITCH
Iron ore prices will stay low for several years due to increasing supply, weak demand growth in China and the slower-than-expected closure of high- ...
Tuesday, 19 May 15
KOMIPO IS SEEKING TOTAL 2.34 MMT OF HCV AND LCV COAL FOR 2015 - 2017
COALspot.com: South Korean state-owned utility Korea Midland Power (KOMIPO) issued an new tender to buy total 2.34 million Metric Tons (MT) of HCV ...
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- Kobexindo Tractors - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Toyota Tsusho Corporation, Japan
- Leighton Contractors Pty Ltd - Australia
- Riau Bara Harum - Indonesia
- ICICI Bank Limited - India
- Thiess Contractors Indonesia
- Central Electricity Authority - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Asia Pacific Energy Resources Ventures Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Australian Coal Association
- Meralco Power Generation, Philippines
- Goldman Sachs - Singapore
- Meenaskhi Energy Private Limited - India
- Siam City Cement - Thailand
- Bangladesh Power Developement Board
- Globalindo Alam Lestari - Indonesia
- Sical Logistics Limited - India
- Cigading International Bulk Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Port Waratah Coal Services - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Baramulti Group, Indonesia
- Holcim Trading Pte Ltd - Singapore
- Orica Australia Pty. Ltd.
- Jindal Steel & Power Ltd - India
- Larsen & Toubro Limited - India
- Chamber of Mines of South Africa
- Bhoruka Overseas - Indonesia
- Eastern Coal Council - USA
- Carbofer General Trading SA - India
- Jaiprakash Power Ventures ltd
- Simpson Spence & Young - Indonesia
- The Treasury - Australian Government
- Aboitiz Power Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Rashtriya Ispat Nigam Limited - India
- OPG Power Generation Pvt Ltd - India
- Grasim Industreis Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Bank of Tokyo Mitsubishi UFJ Ltd
- Xindia Steels Limited - India
- Lanco Infratech Ltd - India
- Power Finance Corporation Ltd., India
- India Bulls Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Asmin Koalindo Tuhup - Indonesia
- Thai Mozambique Logistica
- Economic Council, Georgia
- GVK Power & Infra Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Attock Cement Pakistan Limited
- Medco Energi Mining Internasional
- Singapore Mercantile Exchange
- Africa Commodities Group - South Africa
- Kartika Selabumi Mining - Indonesia
- Alfred C Toepfer International GmbH - Germany
- ASAPP Information Group - India
- Aditya Birla Group - India
- Energy Link Ltd, New Zealand
- Krishnapatnam Port Company Ltd. - India
- VISA Power Limited - India
- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Kideco Jaya Agung - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Planning Commission, India
- Merrill Lynch Commodities Europe
- Miang Besar Coal Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Bhatia International Limited - India
- PTC India Limited - India
- Indogreen Group - Indonesia
- Antam Resourcindo - Indonesia
- Marubeni Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Posco Energy - South Korea
- London Commodity Brokers - England
- Independent Power Producers Association of India
- Siam City Cement PLC, Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Indika Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- PowerSource Philippines DevCo
- Eastern Energy - Thailand
- Ceylon Electricity Board - Sri Lanka
- Kepco SPC Power Corporation, Philippines
- MS Steel International - UAE
- Parliament of New Zealand
- SMC Global Power, Philippines
- Minerals Council of Australia
- Makarim & Taira - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Renaissance Capital - South Africa
- New Zealand Coal & Carbon
- Mercuria Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Borneo Indobara - Indonesia
- GAC Shipping (India) Pvt Ltd
- IEA Clean Coal Centre - UK
- PNOC Exploration Corporation - Philippines
- The University of Queensland
- Indian Oil Corporation Limited
- Tamil Nadu electricity Board
- Petrochimia International Co. Ltd.- Taiwan
- Commonwealth Bank - Australia
- White Energy Company Limited
- Vedanta Resources Plc - India
- Global Business Power Corporation, Philippines
- Standard Chartered Bank - UAE
- The State Trading Corporation of India Ltd
- Directorate Of Revenue Intelligence - India
- Karaikal Port Pvt Ltd - India
- Mintek Dendrill Indonesia
- Coal and Oil Company - UAE
- Therma Luzon, Inc, Philippines
- Madhucon Powers Ltd - India
- Videocon Industries ltd - India
- Ministry of Transport, Egypt
- Latin American Coal - Colombia
- Deloitte Consulting - India
- Bahari Cakrawala Sebuku - Indonesia
- TeaM Sual Corporation - Philippines
- Rio Tinto Coal - Australia
- Cement Manufacturers Association - India
- McConnell Dowell - Australia
- SN Aboitiz Power Inc, Philippines
- Interocean Group of Companies - India
- Malabar Cements Ltd - India
- Agrawal Coal Company - India
- Oldendorff Carriers - Singapore
- SMG Consultants - Indonesia
- Ind-Barath Power Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Maharashtra Electricity Regulatory Commission - India
- Indo Tambangraya Megah - Indonesia
- Global Coal Blending Company Limited - Australia
- Kalimantan Lumbung Energi - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Barasentosa Lestari - Indonesia
- Bhushan Steel Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Heidelberg Cement - Germany
- Bayan Resources Tbk. - Indonesia
- CNBM International Corporation - China
- Kumho Petrochemical, South Korea
- Ministry of Mines - Canada
- Mercator Lines Limited - India
- Sinarmas Energy and Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Coalindo Energy - Indonesia
- Sojitz Corporation - Japan
- Star Paper Mills Limited - India
- Samtan Co., Ltd - South Korea
- Bulk Trading Sa - Switzerland
- Australian Commodity Traders Exchange
- Uttam Galva Steels Limited - India
- Romanian Commodities Exchange
- European Bulk Services B.V. - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Edison Trading Spa - Italy
- GN Power Mariveles Coal Plant, Philippines
- Intertek Mineral Services - Indonesia
- Savvy Resources Ltd - HongKong
- Electricity Authority, New Zealand
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- Binh Thuan Hamico - Vietnam
- Petron Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Central Java Power - Indonesia
- Indonesian Coal Mining Association
- San Jose City I Power Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Wood Mackenzie - Singapore
- Anglo American - United Kingdom
- Pendopo Energi Batubara - Indonesia
- Dalmia Cement Bharat India
- Indian Energy Exchange, India
- Jorong Barutama Greston.PT - Indonesia
- Salva Resources Pvt Ltd - India
- Tata Chemicals Ltd - India
- Chettinad Cement Corporation Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Orica Mining Services - Indonesia
- Sarangani Energy Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- LBH Netherlands Bv - Netherlands
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- Vizag Seaport Private Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Banpu Public Company Limited - Thailand
- Kapuas Tunggal Persada - Indonesia
- Gujarat Sidhee Cement - India
- CIMB Investment Bank - Malaysia
- Sindya Power Generating Company Private Ltd
- Bharathi Cement Corporation - India
- Parry Sugars Refinery, India
- Gujarat Mineral Development Corp Ltd - India
- Maheswari Brothers Coal Limited - India
- GMR Energy Limited - India
- Sakthi Sugars Limited - India
- Price Waterhouse Coopers - Russia
- Mjunction Services Limited - India
- Coastal Gujarat Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Ministry of Finance - Indonesia
- Manunggal Multi Energi - Indonesia
- Wilmar Investment Holdings
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- Semirara Mining Corp, Philippines
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