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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$6,110 per day net respectively in the first quarter of 2015, representing a 45% reduction in average rates compared to the same period last year. Newbuilding deliveries deferred from 2014 into January and February coincided with the lunar new year holidays seasonal demand slowdown in China and seasonal export disruptions in key trade areas. Together, these pulled the Baltic Dry Index (BDI) to its lowest since indices began in 1985. However, spot market rates for Handysize and Handymax vessels have gradually improved since lunar new year, albeit from a very low base”, concluded Pacific Basin”.
Lazaridis concluded his analysis by noting that “all this put together allows for better prospects and in essence lower risk while providing comparatively similar asset play returns (in percentage terms) with that of the larger sizes. To close off, it is always worth noting that there is a bright side to every market slump as there is also a dark side to every market boom. Both need caution and proper estimating of the kind of risk/reward one engages with”.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 20 April 15
Q4' 2015 API 8 CFR SOUTH CHINA COAL SWAP CLOSED US$ 50.28 PMT
COALspot.com: API 8 CFR South China Coal swap for Q2’ 2015 delivery declined US$ 4.03 (-7.28%) per MT month over month and US$ 0.05 (-0 ...
Sunday, 19 April 15
THE OCEAN FREIGHT MARKET SHOWED STEADY THIS WEEK
COALspot.com: The freight market was fairly steady this week. The BDI was up 2.93% to 597 points week over week. The cape index was also increased ...
Friday, 17 April 15
IHS ENERGY EUROPEAN COAL OUTLOOK CONFERENCE
Attend the IHS Energy European Coal Outlook Conference 19-20 May in Nice, France and learn about timely concerns in today’s coal industry.
...
Friday, 17 April 15
COAL PRODUCTION IN THE U.S. UP THIS PAST WEEK - EIA
COALspot.com – United States the second largest coal producer in the world has produced approximately totaled an estimated 18.0 million short ...
Thursday, 16 April 15
NEW COMMODITY SUPERHIGHWAY WILL EMERGE IN CHINA, ALTERING ENERGY TRADE FLOWS - WOOD MACKENZIE
Wood Mackenzie says that China’s Go West strategy – encouraging coastal to inland flow of capital and people - will result in the forma ...
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- Energy Development Corp, Philippines
- Marubeni Corporation - India
- Riau Bara Harum - Indonesia
- Anglo American - United Kingdom
- Electricity Generating Authority of Thailand
- Siam City Cement - Thailand
- Iligan Light & Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Wood Mackenzie - Singapore
- PNOC Exploration Corporation - Philippines
- Agrawal Coal Company - India
- Mercuria Energy - Indonesia
- Grasim Industreis Ltd - India
- Thiess Contractors Indonesia
- Indian Oil Corporation Limited
- European Bulk Services B.V. - Netherlands
- Global Coal Blending Company Limited - Australia
- SMC Global Power, Philippines
- Ind-Barath Power Infra Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Kaltim Prima Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- GAC Shipping (India) Pvt Ltd
- Australian Commodity Traders Exchange
- Bhatia International Limited - India
- Savvy Resources Ltd - HongKong
- Makarim & Taira - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Australian Coal Association
- Orica Mining Services - Indonesia
- Sindya Power Generating Company Private Ltd
- Barasentosa Lestari - Indonesia
- Meralco Power Generation, Philippines
- Kobexindo Tractors - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Commonwealth Bank - Australia
- Vedanta Resources Plc - India
- Sinarmas Energy and Mining - Indonesia
- The Treasury - Australian Government
- Kepco SPC Power Corporation, Philippines
- London Commodity Brokers - England
- Attock Cement Pakistan Limited
- CIMB Investment Bank - Malaysia
- Thai Mozambique Logistica
- Rio Tinto Coal - Australia
- Therma Luzon, Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Antam Resourcindo - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Directorate Of Revenue Intelligence - India
- Global Green Power PLC Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Star Paper Mills Limited - India
- MS Steel International - UAE
- India Bulls Power Limited - India
- South Luzon Thermal Energy Corporation
- PowerSource Philippines DevCo
- Bulk Trading Sa - Switzerland
- Bharathi Cement Corporation - India
- Interocean Group of Companies - India
- Bangladesh Power Developement Board
- Krishnapatnam Port Company Ltd. - India
- Bhushan Steel Limited - India
- Gujarat Sidhee Cement - India
- Maheswari Brothers Coal Limited - India
- PTC India Limited - India
- IEA Clean Coal Centre - UK
- AsiaOL BioFuels Corp., Philippines
- Larsen & Toubro Limited - India
- Deloitte Consulting - India
- SN Aboitiz Power Inc, Philippines
- Medco Energi Mining Internasional
- Port Waratah Coal Services - Australia
- TeaM Sual Corporation - Philippines
- Coal and Oil Company - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Timah Investasi Mineral - Indoneisa
- Goldman Sachs - Singapore
- Kapuas Tunggal Persada - Indonesia
- Petron Corporation, Philippines
- Uttam Galva Steels Limited - India
- New Zealand Coal & Carbon
- Karbindo Abesyapradhi - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- Aboitiz Power Corporation - Philippines
- ICICI Bank Limited - India
- Sakthi Sugars Limited - India
- ASAPP Information Group - India
- Electricity Authority, New Zealand
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- Cement Manufacturers Association - India
- Salva Resources Pvt Ltd - India
- The University of Queensland
- Mintek Dendrill Indonesia
- Power Finance Corporation Ltd., India
- Independent Power Producers Association of India
- Jindal Steel & Power Ltd - India
- Simpson Spence & Young - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Tata Chemicals Ltd - India
- Africa Commodities Group - South Africa
- Holcim Trading Pte Ltd - Singapore
- Sical Logistics Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Energy Link Ltd, New Zealand
- Latin American Coal - Colombia
- Parry Sugars Refinery, India
- Vijayanagar Sugar Pvt Ltd - India
- Indika Energy - Indonesia
- VISA Power Limited - India
- McConnell Dowell - Australia
- GN Power Mariveles Coal Plant, Philippines
- Rashtriya Ispat Nigam Limited - India
- Romanian Commodities Exchange
- Dalmia Cement Bharat India
- Planning Commission, India
- Bukit Asam (Persero) Tbk - Indonesia
- Singapore Mercantile Exchange
- Pendopo Energi Batubara - Indonesia
- Metalloyd Limited - United Kingdom
- White Energy Company Limited
- Meenaskhi Energy Private Limited - India
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- OPG Power Generation Pvt Ltd - India
- Videocon Industries ltd - India
- Banpu Public Company Limited - Thailand
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Madhucon Powers Ltd - India
- The State Trading Corporation of India Ltd
- Ministry of Finance - Indonesia
- Lanco Infratech Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Xindia Steels Limited - India
- Georgia Ports Authority, United States
- Jaiprakash Power Ventures ltd
- Indogreen Group - Indonesia
- Price Waterhouse Coopers - Russia
- Edison Trading Spa - Italy
- Kalimantan Lumbung Energi - Indonesia
- Kumho Petrochemical, South Korea
- GVK Power & Infra Limited - India
- Essar Steel Hazira Ltd - India
- Orica Australia Pty. Ltd.
- Globalindo Alam Lestari - Indonesia
- Karaikal Port Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Bhoruka Overseas - Indonesia
- Eastern Coal Council - USA
- IHS Mccloskey Coal Group - USA
- Indonesian Coal Mining Association
- Coalindo Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Maharashtra Electricity Regulatory Commission - India
- Trasteel International SA, Italy
- TNB Fuel Sdn Bhd - Malaysia
- Standard Chartered Bank - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Oldendorff Carriers - Singapore
- Global Business Power Corporation, Philippines
- Eastern Energy - Thailand
- International Coal Ventures Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- Ambuja Cements Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Altura Mining Limited, Indonesia
- Merrill Lynch Commodities Europe
- Wilmar Investment Holdings
- LBH Netherlands Bv - Netherlands
- Bukit Baiduri Energy - Indonesia
- Aditya Birla Group - India
- Economic Council, Georgia
- Central Electricity Authority - India
- Formosa Plastics Group - Taiwan
- Ministry of Mines - Canada
- Heidelberg Cement - Germany
- GMR Energy Limited - India
- Mercator Lines Limited - India
- Bayan Resources Tbk. - Indonesia
- Coastal Gujarat Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Chamber of Mines of South Africa
- SMG Consultants - Indonesia
- Sojitz Corporation - Japan
- Parliament of New Zealand
- Minerals Council of Australia
- Billiton Holdings Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- Ministry of Transport, Egypt
- Straits Asia Resources Limited - Singapore
- Central Java Power - Indonesia
- Manunggal Multi Energi - Indonesia
- Chettinad Cement Corporation Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Vizag Seaport Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- Indian Energy Exchange, India
- Baramulti Group, Indonesia
- Borneo Indobara - Indonesia
- Carbofer General Trading SA - India
- Gujarat Electricity Regulatory Commission - India
- Sarangani Energy Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- Toyota Tsusho Corporation, Japan
- Tamil Nadu electricity Board
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