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Tuesday, 13 October 15
DRY BULK SHIPPING FLEET NET EXPANSION WAS 1.3% DURING THIRD QUARTER, BUT ORDERBOOK REDUCED TO 17% OF THE TRADING FLEET
 If the dry bulk market is to rebound on a sustainable level, it needs to limit the tonnage expansion, at least until demand picks up again, as China’s slowdown is curbing freight rates. As such, the high level of demolition activity over the first half of the year, helped rates pick up during the third quarter. According to dry bulk ship owner Pacific Basin, Handysize and Handymax market spot rates averaged US$6,000 and US$8,340 per day net respectively in the third quarter of 2015. While only marginally up compared to the same period last year, these average market rates represent a 23% and 30% improvement on the previous quarter.
According to Pacific Basin’s analysis, “the quarter on quarter improvement was largely driven by healthier conditions in the Atlantic on strong South American agricultural exports. Atlantic spot market rates reached early 2014 levels and have since declined as the South American season subsides. By contrast, the Pacific freight market has been relatively flat, demonstrating only a moderate improvement through July which has since been reversed. Weak demand growth in the Pacific is largely due to the continued slowdown in Chinese coal and iron ore imports which together represent a large proportion of overall dry bulk trade”.
Detailing the demand side of things, the ship owner noted that “year-to-date coal imports are 30% down year on year while iron ore imports have been largely flat. Year-to-date Chinese imports of a basket of seven minor bulks are down 2% year on year due mainly to a weaker start to 2015. Minor bulk trade volumes since March were higher than in the same months in 2014 and have lent some support to demand for Handysize and Handymax ships. In particular, Chinese imports of bauxite increased year on year, and imports of soybeans and cereal grains are substantially up. Chinese steel exports have also increased”.
It continued by noting that “on the vessel supply side, the pace of newbuilding deliveries in 2015 has closely tracked 2014 when we saw the lowest rate of new ship additions in 15 years. The high level of scrapping in the first half of 2015 gave way to reduced scrapping in the third quarter due to the improved freight market. As a result, the overall dry bulk fleet expanded by 1.3% net during the quarter, having previously seen no net growth since the end of January. The overall dry bulk orderbook has reduced to about 17% of the trading fleet, but delays, cancellations, conversions and shipyard defaults – primarily in China – are leading to fewer actual deliveries than scheduled at the start of the year. The ship supply surplus built up in 2010-2012 and slowdown in Chinese raw materials imports – especially coal – continue to drive overall weakness, and we continue to manage the business for a weak market in the medium term”.
Pacific Basin also said that “secondhand values have been substantially flat in recent months. Benchmark five year old 32,000 dwt Handysize bulk carriers are currently valued by Clarksons Platou at US$13.0 million which is unchanged since May. Handysize newbuildings are valued at US$20.5 million and the significant gap between newbuilding and secondhand prices continues to discourage new ship ordering and favours buying secondhand ships”.
It concluded by noting that “this weakness will continue to affect shipping businesses and could result in more companies experiencing financial distress along the lines of Daiichi Chuo Kisen Kaisha’s recent filing for bankruptcy protection”.
In a separate report, BIMCO said that “when traditional demand growth is not increasing, we need to look harder for future growth. Here the glut of high-iron-content ore in the international markets and the following low prices may finally bring around a sizeable substitution in consumption by Chinese steel mills, away from the domestically produced low-iron-content ore, in favour of imports”. Calculations done by BIMCO show that monthly imports into China could be 20mt higher per month (+26%). A total of an extra 240 million tons on an annual basis could bring deployment for around 155 Capesizes, assuming an unchanged distribution between Australian and Brazilian imports (75%/25%). Last year, Australia grew its share significantly as 90% of Chinese incremental demand came from Australia. As Brazilian miner Vale is expecting to grow its output over the next year, this would improve the prospects. Working against would be more Brazilian ore transported on 400,000-DWT Valemax class ships operated by the miner itself or related parties”, BIMCO noted in its report.
As such, it concludes that “for the coming months: September-November, BIMCO expects the supply of new ships to stay subdued and slow paced towards the end of the year. The deteriorating demand-side conditions are expected to be somewhat reversed as we move into the stronger months of the year. The vital commodities, coal and iron ore, are both expected to be in higher demand in coming months, enhancing owners’ and operators’ opportunities to find employment for their ships. Altogether this should support the freight rates although no large-scale improvement to the fundamental balance is likely to develop”.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Sunday, 18 October 15
THE BDI AND OTHER INDICES CLOSED OFF ON NEGATIVE NOTE THIS FRIDAY
COALspot.com: The BDI closed off on negative note this Friday compared to previous Friday's closing.
The BDI closed this Friday (16 Octobe ...
Friday, 16 October 15
MAJOR REVISION OF NYPE TIME CHAPTER PARTY - BIMCO
Major revision of NYPE time charter party promises to be both balanced and comprehensive
BIMCO has today jointly issued the first revision of ...
Friday, 16 October 15
FOB INDONESIA COAL SWAP FOR Q4'15 DELIVERY FLAT WEEK OVER WEEK; DOWN 5.5 PER CENT M-M
COALspot.com: Indonesian coal swap for delivery Q4 2015 declined month on month and flat week over week.
The Q4 swap declined $ 2.23 (-5.51%) ...
Friday, 16 October 15
COAL PRODUCTION IN THE UNITED STATES DECREASED THIS WEEK; DOWN 11.3 PER CENT Y-Y, DOWN 3.5 PERCENT W-W
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 17.1 million shor ...
Friday, 16 October 15
INDONESIA REJOINING OPEC DESPITE BEING A NET IMPORTER OF PETROLEUM - EIA
The Organization of the Petroleum Exporting Countries (OPEC) notified Indonesia that it plans to accept the country's request to reactivate its ...
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- Billiton Holdings Pty Ltd - Australia
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Bharathi Cement Corporation - India
- SMG Consultants - Indonesia
- Singapore Mercantile Exchange
- Heidelberg Cement - Germany
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Merrill Lynch Commodities Europe
- Grasim Industreis Ltd - India
- Bulk Trading Sa - Switzerland
- GVK Power & Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Karbindo Abesyapradhi - Indoneisa
- Wilmar Investment Holdings
- LBH Netherlands Bv - Netherlands
- Ministry of Transport, Egypt
- Altura Mining Limited, Indonesia
- Timah Investasi Mineral - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Dalmia Cement Bharat India
- Sakthi Sugars Limited - India
- Manunggal Multi Energi - Indonesia
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- Parry Sugars Refinery, India
- Bhatia International Limited - India
- Banpu Public Company Limited - Thailand
- Electricity Generating Authority of Thailand
- Intertek Mineral Services - Indonesia
- Coalindo Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meenaskhi Energy Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Australian Coal Association
- Coal and Oil Company - UAE
- Rashtriya Ispat Nigam Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Tata Chemicals Ltd - India
- Rio Tinto Coal - Australia
- Indo Tambangraya Megah - Indonesia
- Renaissance Capital - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Larsen & Toubro Limited - India
- Maheswari Brothers Coal Limited - India
- Samtan Co., Ltd - South Korea
- Kohat Cement Company Ltd. - Pakistan
- Indian Energy Exchange, India
- Gujarat Mineral Development Corp Ltd - India
- Semirara Mining Corp, Philippines
- India Bulls Power Limited - India
- ICICI Bank Limited - India
- MS Steel International - UAE
- Indian Oil Corporation Limited
- Indonesian Coal Mining Association
- CNBM International Corporation - China
- Krishnapatnam Port Company Ltd. - India
- Edison Trading Spa - Italy
- GMR Energy Limited - India
- Kumho Petrochemical, South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- Petron Corporation, Philippines
- Formosa Plastics Group - Taiwan
- International Coal Ventures Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Bhushan Steel Limited - India
- Trasteel International SA, Italy
- Global Green Power PLC Corporation, Philippines
- Anglo American - United Kingdom
- Mercator Lines Limited - India
- Toyota Tsusho Corporation, Japan
- Lanco Infratech Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Star Paper Mills Limited - India
- Tamil Nadu electricity Board
- Ind-Barath Power Infra Limited - India
- Madhucon Powers Ltd - India
- Global Business Power Corporation, Philippines
- Romanian Commodities Exchange
- Power Finance Corporation Ltd., India
- Oldendorff Carriers - Singapore
- Antam Resourcindo - Indonesia
- White Energy Company Limited
- Chettinad Cement Corporation Ltd - India
- Riau Bara Harum - Indonesia
- Ministry of Mines - Canada
- Directorate Of Revenue Intelligence - India
- Malabar Cements Ltd - India
- ASAPP Information Group - India
- Sinarmas Energy and Mining - Indonesia
- The University of Queensland
- Aditya Birla Group - India
- Global Coal Blending Company Limited - Australia
- Jaiprakash Power Ventures ltd
- Videocon Industries ltd - India
- VISA Power Limited - India
- Latin American Coal - Colombia
- Borneo Indobara - Indonesia
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Ministry of Finance - Indonesia
- Therma Luzon, Inc, Philippines
- Marubeni Corporation - India
- Kideco Jaya Agung - Indonesia
- Deloitte Consulting - India
- Minerals Council of Australia
- Bhoruka Overseas - Indonesia
- Orica Australia Pty. Ltd.
- Cigading International Bulk Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- PetroVietnam Power Coal Import and Supply Company
- South Luzon Thermal Energy Corporation
- Carbofer General Trading SA - India
- Neyveli Lignite Corporation Ltd, - India
- Eastern Coal Council - USA
- McConnell Dowell - Australia
- Port Waratah Coal Services - Australia
- Sojitz Corporation - Japan
- Interocean Group of Companies - India
- Meralco Power Generation, Philippines
- Siam City Cement - Thailand
- Globalindo Alam Lestari - Indonesia
- Eastern Energy - Thailand
- Sarangani Energy Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- SMC Global Power, Philippines
- Economic Council, Georgia
- Vijayanagar Sugar Pvt Ltd - India
- Georgia Ports Authority, United States
- Barasentosa Lestari - Indonesia
- Agrawal Coal Company - India
- CIMB Investment Bank - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Pendopo Energi Batubara - Indonesia
- Uttam Galva Steels Limited - India
- London Commodity Brokers - England
- The Treasury - Australian Government
- Jindal Steel & Power Ltd - India
- Thai Mozambique Logistica
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate General of MIneral and Coal - Indonesia
- Australian Commodity Traders Exchange
- Sindya Power Generating Company Private Ltd
- Sree Jayajothi Cements Limited - India
- New Zealand Coal & Carbon
- Thiess Contractors Indonesia
- Sical Logistics Limited - India
- Kepco SPC Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Semirara Mining and Power Corporation, Philippines
- PowerSource Philippines DevCo
- Jorong Barutama Greston.PT - Indonesia
- Metalloyd Limited - United Kingdom
- Energy Development Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Bangladesh Power Developement Board
- Mercuria Energy - Indonesia
- Africa Commodities Group - South Africa
- Leighton Contractors Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Baramulti Group, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Makarim & Taira - Indonesia
- Siam City Cement PLC, Thailand
- Mintek Dendrill Indonesia
- TeaM Sual Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- Standard Chartered Bank - UAE
- European Bulk Services B.V. - Netherlands
- Cement Manufacturers Association - India
- Indika Energy - Indonesia
- Planning Commission, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Sidhee Cement - India
- The State Trading Corporation of India Ltd
- Vizag Seaport Private Limited - India
- Simpson Spence & Young - Indonesia
- Savvy Resources Ltd - HongKong
- Medco Energi Mining Internasional
- Kobexindo Tractors - Indoneisa
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- Chamber of Mines of South Africa
- Orica Mining Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Vedanta Resources Plc - India
- Parliament of New Zealand
- Posco Energy - South Korea
- Coastal Gujarat Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Commonwealth Bank - Australia
- Bukit Baiduri Energy - Indonesia
- Ambuja Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Electricity Authority, New Zealand
- Central Java Power - Indonesia
- Indogreen Group - Indonesia
- Attock Cement Pakistan Limited
- Essar Steel Hazira Ltd - India
- Central Electricity Authority - India
- Straits Asia Resources Limited - Singapore
- Kaltim Prima Coal - Indonesia
- Wood Mackenzie - Singapore
- Xindia Steels Limited - India
- Independent Power Producers Association of India
- Kalimantan Lumbung Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
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