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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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Thursday, 30 April 15
IRON ORE EXPORTS: A DANGEROUS RACE? - CLARKSONS
The surge in iron ore exports in recent years has resulted in a significant decrease in iron ore spot prices, which dipped to a ten year low of bel ...
Thursday, 30 April 15
IRON ORE PLAYS EXPECTED TO SHAPE UP MAY DRY BULK SCHEDULE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Market plays in the iron ore commodities’ markets, are expected to carve out the future demand for the shipping industry as well, said Allied ...
Wednesday, 29 April 15
MARKET INSIGHT - INTERMODAL
The figures of China’s slowing down imports of coking coal for the first quarter of the year are coming to confirm what everybody was expecti ...
Wednesday, 29 April 15
SHIPBUILDERS START OFFERING DISCOUNTS FOR DRY BULK NEWBUILDINGS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
It took a while, but now it appears that some shipbuilders are beginning to adjust their price lists to the new grim reality of the dry bulk market ...
Tuesday, 28 April 15
FOB INDONESIA COAL SWAP DECLINED M-O-M; INCREASED W-O-W
COALspot.com: Indonesian coal swap for delivery Q2 2015 gained week over week but declined month on month.
The Q2 swap was declined US$ 0.15 ( ...
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Parry Sugars Refinery, India
- Chamber of Mines of South Africa
- Directorate General of MIneral and Coal - Indonesia
- PTC India Limited - India
- Simpson Spence & Young - Indonesia
- The University of Queensland
- CIMB Investment Bank - Malaysia
- GMR Energy Limited - India
- Tamil Nadu electricity Board
- Indonesian Coal Mining Association
- Samtan Co., Ltd - South Korea
- Thiess Contractors Indonesia
- Interocean Group of Companies - India
- Grasim Industreis Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement PLC, Thailand
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- White Energy Company Limited
- Georgia Ports Authority, United States
- Meenaskhi Energy Private Limited - India
- Edison Trading Spa - Italy
- Jaiprakash Power Ventures ltd
- Australian Coal Association
- Karaikal Port Pvt Ltd - India
- Makarim & Taira - Indonesia
- Orica Australia Pty. Ltd.
- Neyveli Lignite Corporation Ltd, - India
- Salva Resources Pvt Ltd - India
- MS Steel International - UAE
- New Zealand Coal & Carbon
- Metalloyd Limited - United Kingdom
- Independent Power Producers Association of India
- Uttam Galva Steels Limited - India
- Bulk Trading Sa - Switzerland
- European Bulk Services B.V. - Netherlands
- OPG Power Generation Pvt Ltd - India
- Ministry of Transport, Egypt
- Trasteel International SA, Italy
- IEA Clean Coal Centre - UK
- Aditya Birla Group - India
- GAC Shipping (India) Pvt Ltd
- Standard Chartered Bank - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Australian Commodity Traders Exchange
- Holcim Trading Pte Ltd - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- CNBM International Corporation - China
- Semirara Mining Corp, Philippines
- Ceylon Electricity Board - Sri Lanka
- Bangladesh Power Developement Board
- Parliament of New Zealand
- Africa Commodities Group - South Africa
- Leighton Contractors Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Heidelberg Cement - Germany
- Vijayanagar Sugar Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Jindal Steel & Power Ltd - India
- International Coal Ventures Pvt Ltd - India
- Star Paper Mills Limited - India
- Essar Steel Hazira Ltd - India
- Eastern Coal Council - USA
- Bukit Makmur.PT - Indonesia
- Commonwealth Bank - Australia
- Rio Tinto Coal - Australia
- Directorate Of Revenue Intelligence - India
- San Jose City I Power Corp, Philippines
- Singapore Mercantile Exchange
- Riau Bara Harum - Indonesia
- Coalindo Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- SMG Consultants - Indonesia
- Banpu Public Company Limited - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Borneo Indobara - Indonesia
- Anglo American - United Kingdom
- Thai Mozambique Logistica
- ASAPP Information Group - India
- PowerSource Philippines DevCo
- Central Electricity Authority - India
- AsiaOL BioFuels Corp., Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- Planning Commission, India
- Vedanta Resources Plc - India
- Minerals Council of Australia
- The Treasury - Australian Government
- Gujarat Sidhee Cement - India
- Vizag Seaport Private Limited - India
- Therma Luzon, Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Altura Mining Limited, Indonesia
- Indian Oil Corporation Limited
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- Sinarmas Energy and Mining - Indonesia
- London Commodity Brokers - England
- Electricity Generating Authority of Thailand
- Carbofer General Trading SA - India
- Attock Cement Pakistan Limited
- Oldendorff Carriers - Singapore
- Wilmar Investment Holdings
- Indian Energy Exchange, India
- Aboitiz Power Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Xindia Steels Limited - India
- Latin American Coal - Colombia
- Pendopo Energi Batubara - Indonesia
- India Bulls Power Limited - India
- PNOC Exploration Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Indogreen Group - Indonesia
- The State Trading Corporation of India Ltd
- Orica Mining Services - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Madhucon Powers Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Bhatia International Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- Mintek Dendrill Indonesia
- Electricity Authority, New Zealand
- SMC Global Power, Philippines
- TeaM Sual Corporation - Philippines
- Ambuja Cements Ltd - India
- Agrawal Coal Company - India
- Global Green Power PLC Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhushan Steel Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Malabar Cements Ltd - India
- Ministry of Finance - Indonesia
- Baramulti Group, Indonesia
- Marubeni Corporation - India
- Miang Besar Coal Terminal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Sree Jayajothi Cements Limited - India
- Tata Chemicals Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Indika Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- Deloitte Consulting - India
- Krishnapatnam Port Company Ltd. - India
- Savvy Resources Ltd - HongKong
- Kartika Selabumi Mining - Indonesia
- Medco Energi Mining Internasional
- Ministry of Mines - Canada
- Barasentosa Lestari - Indonesia
- South Luzon Thermal Energy Corporation
- GVK Power & Infra Limited - India
- VISA Power Limited - India
- Meralco Power Generation, Philippines
- Eastern Energy - Thailand
- Sindya Power Generating Company Private Ltd
- Jorong Barutama Greston.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- ICICI Bank Limited - India
- Renaissance Capital - South Africa
- Posco Energy - South Korea
- Antam Resourcindo - Indonesia
- Lanco Infratech Ltd - India
- Videocon Industries ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Mjunction Services Limited - India
- Mercator Lines Limited - India
- Goldman Sachs - Singapore
- Iligan Light & Power Inc, Philippines
- Siam City Cement - Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Port Waratah Coal Services - Australia
- Ind-Barath Power Infra Limited - India
- Merrill Lynch Commodities Europe
- Sojitz Corporation - Japan
- Billiton Holdings Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Dalmia Cement Bharat India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sakthi Sugars Limited - India
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- Global Coal Blending Company Limited - Australia
- Bhoruka Overseas - Indonesia
- Sical Logistics Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Coastal Gujarat Power Limited - India
- Wood Mackenzie - Singapore
- Intertek Mineral Services - Indonesia
- Straits Asia Resources Limited - Singapore
- Kideco Jaya Agung - Indonesia
- Romanian Commodities Exchange
- Energy Development Corp, Philippines
- Economic Council, Georgia
- Maheswari Brothers Coal Limited - India
- Cement Manufacturers Association - India
- Energy Link Ltd, New Zealand
- Sarangani Energy Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- McConnell Dowell - Australia
- Kobexindo Tractors - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Petron Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Global Business Power Corporation, Philippines
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