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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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Monday, 28 September 15
Q1'16 CFR SOUTH CHINA COAL SWAP ROSE 2.73 PER CENT M-M
COALspot.com: API 8 CFR South China Coal swap for 4Q’ 2015 delivery moved upward US$ 1.45 (3.04 %) per ton month over month.
A commodity ...
Sunday, 27 September 15
THE PANAMAX INDEX FELL 1.19 PCT WEEK OVER WEEK
COALspot.com: The BDI closed Friday (25/09/2015) at 943 points, down by 17 points compared to previous Friday closing (18/09/2015). The BDI wa ...
Friday, 25 September 15
COAL PRODUCTION IN THE U.S. FOR THE WEEK ENDING SEPTEMBER 19 ROSE 2.5% PER CENT W-W
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 17.8 million shor ...
Wednesday, 23 September 15
CAPESIZE: SPOT RATES HAVE INCREASED MORE THAN 70 PER CENT DURING LAST WEEK
Dry Bulk owners, always look at September as the time that the market “signals” what lies ahead for the remainder of the year. The Chin ...
Wednesday, 23 September 15
INDONESIA: NEW REGULATION APPLIES FINAL INCOME TAX TO MINERAL AND COAL SALES - FLORENCE GRACIA SANTOSO
To increase state revenue from the mining sector, the Government of Indonesia has imposed a new final income tax on any sale of mineral and coal, a ...
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- PTC India Limited - India
- Kumho Petrochemical, South Korea
- Medco Energi Mining Internasional
- ASAPP Information Group - India
- Port Waratah Coal Services - Australia
- Bayan Resources Tbk. - Indonesia
- Xindia Steels Limited - India
- Parry Sugars Refinery, India
- SMG Consultants - Indonesia
- Kideco Jaya Agung - Indonesia
- Ministry of Finance - Indonesia
- Bharathi Cement Corporation - India
- SN Aboitiz Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Edison Trading Spa - Italy
- Tata Chemicals Ltd - India
- Chettinad Cement Corporation Ltd - India
- Ministry of Mines - Canada
- Economic Council, Georgia
- Meralco Power Generation, Philippines
- Africa Commodities Group - South Africa
- Therma Luzon, Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Sakthi Sugars Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Jorong Barutama Greston.PT - Indonesia
- Orica Australia Pty. Ltd.
- Ind-Barath Power Infra Limited - India
- Larsen & Toubro Limited - India
- Jaiprakash Power Ventures ltd
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Salva Resources Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Mercator Lines Limited - India
- Bukit Makmur.PT - Indonesia
- Carbofer General Trading SA - India
- Pipit Mutiara Jaya. PT, Indonesia
- IEA Clean Coal Centre - UK
- GAC Shipping (India) Pvt Ltd
- Karaikal Port Pvt Ltd - India
- Commonwealth Bank - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Samtan Co., Ltd - South Korea
- Metalloyd Limited - United Kingdom
- Toyota Tsusho Corporation, Japan
- Coal and Oil Company - UAE
- Rashtriya Ispat Nigam Limited - India
- Siam City Cement PLC, Thailand
- Rio Tinto Coal - Australia
- London Commodity Brokers - England
- TNB Fuel Sdn Bhd - Malaysia
- VISA Power Limited - India
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- Essar Steel Hazira Ltd - India
- Merrill Lynch Commodities Europe
- Barasentosa Lestari - Indonesia
- Heidelberg Cement - Germany
- Jindal Steel & Power Ltd - India
- Aboitiz Power Corporation - Philippines
- Uttam Galva Steels Limited - India
- Agrawal Coal Company - India
- Siam City Cement - Thailand
- Formosa Plastics Group - Taiwan
- GVK Power & Infra Limited - India
- Indika Energy - Indonesia
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Oldendorff Carriers - Singapore
- ICICI Bank Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Neyveli Lignite Corporation Ltd, - India
- CNBM International Corporation - China
- Alfred C Toepfer International GmbH - Germany
- Eastern Coal Council - USA
- Global Business Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- AsiaOL BioFuels Corp., Philippines
- India Bulls Power Limited - India
- Thiess Contractors Indonesia
- Energy Development Corp, Philippines
- Petron Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Standard Chartered Bank - UAE
- OPG Power Generation Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- Asmin Koalindo Tuhup - Indonesia
- IHS Mccloskey Coal Group - USA
- Kartika Selabumi Mining - Indonesia
- The University of Queensland
- Mjunction Services Limited - India
- Tamil Nadu electricity Board
- Binh Thuan Hamico - Vietnam
- Marubeni Corporation - India
- Holcim Trading Pte Ltd - Singapore
- SMC Global Power, Philippines
- PowerSource Philippines DevCo
- Latin American Coal - Colombia
- Sree Jayajothi Cements Limited - India
- Georgia Ports Authority, United States
- Kohat Cement Company Ltd. - Pakistan
- GMR Energy Limited - India
- Independent Power Producers Association of India
- Deloitte Consulting - India
- TeaM Sual Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Mintek Dendrill Indonesia
- McConnell Dowell - Australia
- Malabar Cements Ltd - India
- Central Java Power - Indonesia
- Romanian Commodities Exchange
- Intertek Mineral Services - Indonesia
- Australian Coal Association
- Planning Commission, India
- Vizag Seaport Private Limited - India
- Globalindo Alam Lestari - Indonesia
- Pendopo Energi Batubara - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Global Coal Blending Company Limited - Australia
- International Coal Ventures Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Dalmia Cement Bharat India
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Kaltim Prima Coal - Indonesia
- Eastern Energy - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Riau Bara Harum - Indonesia
- Ministry of Transport, Egypt
- Attock Cement Pakistan Limited
- Borneo Indobara - Indonesia
- Renaissance Capital - South Africa
- LBH Netherlands Bv - Netherlands
- Parliament of New Zealand
- Central Electricity Authority - India
- Timah Investasi Mineral - Indoneisa
- Lanco Infratech Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- Gujarat Sidhee Cement - India
- Kepco SPC Power Corporation, Philippines
- Sojitz Corporation - Japan
- Indogreen Group - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Antam Resourcindo - Indonesia
- Posco Energy - South Korea
- Meenaskhi Energy Private Limited - India
- Aditya Birla Group - India
- Savvy Resources Ltd - HongKong
- Bhoruka Overseas - Indonesia
- Sical Logistics Limited - India
- Vedanta Resources Plc - India
- Mercuria Energy - Indonesia
- Baramulti Group, Indonesia
- Orica Mining Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Bhushan Steel Limited - India
- Kobexindo Tractors - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wood Mackenzie - Singapore
- Sinarmas Energy and Mining - Indonesia
- Energy Link Ltd, New Zealand
- Grasim Industreis Ltd - India
- Singapore Mercantile Exchange
- CIMB Investment Bank - Malaysia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bulk Trading Sa - Switzerland
- Indian Energy Exchange, India
- PNOC Exploration Corporation - Philippines
- Power Finance Corporation Ltd., India
- Karbindo Abesyapradhi - Indoneisa
- Minerals Council of Australia
- European Bulk Services B.V. - Netherlands
- Price Waterhouse Coopers - Russia
- Wilmar Investment Holdings
- Sindya Power Generating Company Private Ltd
- Leighton Contractors Pty Ltd - Australia
- Indian Oil Corporation Limited
- Gujarat Electricity Regulatory Commission - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Maharashtra Electricity Regulatory Commission - India
- Interocean Group of Companies - India
- Semirara Mining Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Thai Mozambique Logistica
- Indonesian Coal Mining Association
- Bangladesh Power Developement Board
- Videocon Industries ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- Altura Mining Limited, Indonesia
- Star Paper Mills Limited - India
- New Zealand Coal & Carbon
- Indo Tambangraya Megah - Indonesia
- Electricity Authority, New Zealand
- Sarangani Energy Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Anglo American - United Kingdom
- Bhatia International Limited - India
- Maheswari Brothers Coal Limited - India
- Chamber of Mines of South Africa
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