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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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Friday, 24 April 15
CHINA IRON ORE MINE CLOSURES TO SLOW ON GOVERNMENT SUPPORT - FITCH
Fitch Ratings expects fewer Chinese iron ore mine closures in 2015 as the government takes steps to support the industry, which has been struggling ...
Friday, 24 April 15
IS INDIA THE 'NEW CHINA' WHEN IT COMES TO THE DRY BULK MARKET? - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has been feeling the “heat” of China’s slowdown and together with the industry’s own failings, with ove ...
Friday, 24 April 15
GLOBAL STEEL PRODUCTION OUTSIDE OF CHINA CONTINUES TO FARE VERY POORLY - JEFFREY LANDSBERG
COALspot.com: Data released this week showed that global crude steel production totaled approximately 138.05 million tons in March.
Wha ...
Friday, 24 April 15
WEEKLY U.S. COAL PRODUCTION ESTIMATE FALLS 5.7% FROM LAST WEEK
COALspot.com – United States the second largest coal producer in the world has produced approximately totaled an estimated 17.0 million short ...
Wednesday, 22 April 15
PANAMAX : ATLANTIC HOLDING ON TO THE GAINS OF THE PREVIOUS WEEK; PACIFIC BUSINESS SLID QUIETLY
COALspot.com: The Dry Bulk market managed to close off the week on a positive note last Friday, while as opposed to what we have been used to, it w ...
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- Bank of Tokyo Mitsubishi UFJ Ltd
- Merrill Lynch Commodities Europe
- Tata Chemicals Ltd - India
- Singapore Mercantile Exchange
- TeaM Sual Corporation - Philippines
- Ambuja Cements Ltd - India
- Australian Coal Association
- Eastern Coal Council - USA
- Bukit Baiduri Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- CNBM International Corporation - China
- Global Green Power PLC Corporation, Philippines
- Indian Oil Corporation Limited
- ICICI Bank Limited - India
- Kobexindo Tractors - Indoneisa
- Minerals Council of Australia
- Meenaskhi Energy Private Limited - India
- Baramulti Group, Indonesia
- Africa Commodities Group - South Africa
- LBH Netherlands Bv - Netherlands
- Aboitiz Power Corporation - Philippines
- Romanian Commodities Exchange
- Price Waterhouse Coopers - Russia
- Kideco Jaya Agung - Indonesia
- Georgia Ports Authority, United States
- Indogreen Group - Indonesia
- Central Java Power - Indonesia
- PTC India Limited - India
- IHS Mccloskey Coal Group - USA
- Wood Mackenzie - Singapore
- PowerSource Philippines DevCo
- Riau Bara Harum - Indonesia
- Uttam Galva Steels Limited - India
- Binh Thuan Hamico - Vietnam
- Thai Mozambique Logistica
- Gujarat Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Manunggal Multi Energi - Indonesia
- Bangladesh Power Developement Board
- Heidelberg Cement - Germany
- Lanco Infratech Ltd - India
- Cement Manufacturers Association - India
- Directorate General of MIneral and Coal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Holcim Trading Pte Ltd - Singapore
- Coalindo Energy - Indonesia
- Antam Resourcindo - Indonesia
- Jindal Steel & Power Ltd - India
- Attock Cement Pakistan Limited
- Semirara Mining and Power Corporation, Philippines
- London Commodity Brokers - England
- Bhushan Steel Limited - India
- Global Coal Blending Company Limited - Australia
- VISA Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ceylon Electricity Board - Sri Lanka
- Ind-Barath Power Infra Limited - India
- Timah Investasi Mineral - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Malabar Cements Ltd - India
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- ASAPP Information Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Electricity Generating Authority of Thailand
- Mercator Lines Limited - India
- Kalimantan Lumbung Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- Australian Commodity Traders Exchange
- Borneo Indobara - Indonesia
- MS Steel International - UAE
- PNOC Exploration Corporation - Philippines
- Posco Energy - South Korea
- Savvy Resources Ltd - HongKong
- Siam City Cement PLC, Thailand
- Mjunction Services Limited - India
- Cigading International Bulk Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Madhucon Powers Ltd - India
- Alfred C Toepfer International GmbH - Germany
- AsiaOL BioFuels Corp., Philippines
- Independent Power Producers Association of India
- Samtan Co., Ltd - South Korea
- Formosa Plastics Group - Taiwan
- Chettinad Cement Corporation Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Global Business Power Corporation, Philippines
- McConnell Dowell - Australia
- Globalindo Alam Lestari - Indonesia
- Vizag Seaport Private Limited - India
- Thiess Contractors Indonesia
- Sree Jayajothi Cements Limited - India
- Star Paper Mills Limited - India
- Orica Australia Pty. Ltd.
- Ministry of Transport, Egypt
- SMG Consultants - Indonesia
- Directorate Of Revenue Intelligence - India
- Sical Logistics Limited - India
- Kapuas Tunggal Persada - Indonesia
- Central Electricity Authority - India
- Sarangani Energy Corporation, Philippines
- Meralco Power Generation, Philippines
- Vedanta Resources Plc - India
- Edison Trading Spa - Italy
- Sinarmas Energy and Mining - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Planning Commission, India
- Chamber of Mines of South Africa
- GVK Power & Infra Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- Oldendorff Carriers - Singapore
- Larsen & Toubro Limited - India
- Kumho Petrochemical, South Korea
- Essar Steel Hazira Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Commonwealth Bank - Australia
- GMR Energy Limited - India
- European Bulk Services B.V. - Netherlands
- Simpson Spence & Young - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- Economic Council, Georgia
- New Zealand Coal & Carbon
- Indian Energy Exchange, India
- Gujarat Sidhee Cement - India
- Siam City Cement - Thailand
- Bhatia International Limited - India
- Bhoruka Overseas - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Aditya Birla Group - India
- Asmin Koalindo Tuhup - Indonesia
- Intertek Mineral Services - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Deloitte Consulting - India
- Agrawal Coal Company - India
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Marubeni Corporation - India
- PetroVietnam Power Coal Import and Supply Company
- Petron Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- The State Trading Corporation of India Ltd
- Straits Asia Resources Limited - Singapore
- Renaissance Capital - South Africa
- Therma Luzon, Inc, Philippines
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- Xindia Steels Limited - India
- Barasentosa Lestari - Indonesia
- Sindya Power Generating Company Private Ltd
- Trasteel International SA, Italy
- Bukit Makmur.PT - Indonesia
- Anglo American - United Kingdom
- Dalmia Cement Bharat India
- CIMB Investment Bank - Malaysia
- Vijayanagar Sugar Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Karaikal Port Pvt Ltd - India
- Mintek Dendrill Indonesia
- Mercuria Energy - Indonesia
- Wilmar Investment Holdings
- Bayan Resources Tbk. - Indonesia
- Metalloyd Limited - United Kingdom
- GN Power Mariveles Coal Plant, Philippines
- Power Finance Corporation Ltd., India
- Maheswari Brothers Coal Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- OPG Power Generation Pvt Ltd - India
- Bharathi Cement Corporation - India
- The Treasury - Australian Government
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- Pendopo Energi Batubara - Indonesia
- Parliament of New Zealand
- Coal and Oil Company - UAE
- Jaiprakash Power Ventures ltd
- Semirara Mining Corp, Philippines
- IEA Clean Coal Centre - UK
- India Bulls Power Limited - India
- Altura Mining Limited, Indonesia
- GAC Shipping (India) Pvt Ltd
- Gujarat Mineral Development Corp Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Kaltim Prima Coal - Indonesia
- Ministry of Finance - Indonesia
- Energy Development Corp, Philippines
- Tamil Nadu electricity Board
- Standard Chartered Bank - UAE
- Indo Tambangraya Megah - Indonesia
- Goldman Sachs - Singapore
- Carbofer General Trading SA - India
- Kepco SPC Power Corporation, Philippines
- Grasim Industreis Ltd - India
- The University of Queensland
- Salva Resources Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Coastal Gujarat Power Limited - India
- Banpu Public Company Limited - Thailand
- Medco Energi Mining Internasional
- White Energy Company Limited
- Videocon Industries ltd - India
- Orica Mining Services - Indonesia
- Indika Energy - Indonesia
- Ministry of Mines - Canada
- SMC Global Power, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
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