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Friday, 01 April 16
ASSESSING THE DRY BULK MARKET AT ROCK BOTTOM - CLARKSONS
 While the opening months of the year are typically a weak period for the dry bulk market, the downturn so far this year has been severe. Earnings hit record lows, while asset prices fell sharply. In a bid to reduce their exposure to the depression, bulker owners have demolished and idled increasing volumes of capacity, while contracting activity has stalled. The market appears to have hit the bottom of the cycle.
Depressed Earnings
Over the past decade, bulkcarrier earnings in the January-February period have averaged 15% lower than the levels for the rest of the year, reflecting a seasonal slowdown in dry bulk trade. However, the weakness so far this year has been particularly stark. Average earnings dropped 41% y-o-y in January 2016, before hitting a record low of $3,666/day in February. Similarly, the Baltic Dry Index fell 48% y-o-y to a record low of 290 points in mid-February 2016, while the 1 year benchmark Capesize timecharter rate also slumped to a historical low of $6,025/day at the end of the month. In short, this has been the worst start to the year on record for bulker owners.
Slumping Prices
The depressed dry bulk market conditions and bleak outlook have also seen asset prices reach multi-year lows. The Clarksons Bulkcarrier Secondhand Price Index fell 39% y-o-y to 71 points in January 2016: the lowest level since 1987. By the end of January 2016, a 5 year old Capesize could be purchased for $23m, which was also the lowest level in 29 years. This represented 50% of the guideline Capesize newbuild price ($46m), compared to 67% in January 2015, further highlighting the depression in the market.
Getting Destructive
Collapsing bulker earnings and declining asset prices have exerted severe financial pressure on owners. As such, many have removed large volumes of tonnage from their active fleets. In the first 11 weeks of 2016, 134 bulkcarrier units of a combined 11.1m dwt were scrapped, which when annualised exceeds 52m dwt. Demolition is currently projected to surpass the 2012 record (33.4m dwt) in full year 2016. The total confirmed number of idled or laid-up bulkers has also increased firmly in the past six months, totalling 214 units of a combined 11.2m dwt by mid-March and accounting for around 1.4% of bulkcarrier fleet capacity.
Little Interest In Ordering
Meanwhile, bulker contracting has stalled in the year to date. While orders for 30 Valemaxes are expected to be confirmed this year, in total only 4 bulkcarrier orders of a combined 0.3m dwt were reported in the first two months of the year. This compares to 41 units of a combined 2.8m dwt in the same period in 2015.
So, the chronically imbalanced market fundamentals have seen earnings hit record lows and the market appears to be at the bottom of the cycle. Some might assume that the only way is up, but any real recovery in the dry bulk market is likely to require a significant readjustment of supply and demand trends over a sustained period of time. Overall, the dry bulk market seems in desperate need of this kind of shift to see better days.
Source: Clarksons
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Monday, 11 April 16
BDI ROSE TO ITS HIGHEST LEVEL IN FOUR MONTHS
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to rose this week.
The freight market was ...
Friday, 08 April 16
COASTAL ENERGEN CROSSES GENERATION OF 1068 MW AND EXPORT OF 1004 MW FROM ITS 1200 MW IPP
COALspot.com: Coal & Oil (C&O) Group, an India centric Energy & Infrastructure company announced that their Coastal Energen' ...
Friday, 08 April 16
WEEKLY US COAL PRODUCTION ESTIMATES DIP 5.4% TO 11 MMST
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 11 million short ...
Friday, 08 April 16
MINISTER OF ENERGY AND MINERAL RESOURCES OF INDONESIA TO ISSUE REGULATION TO GUARANTEE THE COAL SUPPLY TO ITS 35K POWER PLANT PROJECTS
COALspot.com: In order to guarantee the supply of coal for 35,000 megawatt (mw) coal based power plants ( still in planning stage), the Minister of ...
Thursday, 07 April 16
CHINA STEEL CAPACITY CUTS FACE SOCIAL, FINANCIAL HURDLES - FITCH RATINGS
Fitch Ratings says today that the Chinese government's supply-side reform of the steel sector faces immense social and financial challenges. Th ...
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- CNBM International Corporation - China
- Toyota Tsusho Corporation, Japan
- Banpu Public Company Limited - Thailand
- Independent Power Producers Association of India
- Gujarat Sidhee Cement - India
- Parry Sugars Refinery, India
- Jaiprakash Power Ventures ltd
- Siam City Cement - Thailand
- London Commodity Brokers - England
- Vizag Seaport Private Limited - India
- Wood Mackenzie - Singapore
- Videocon Industries ltd - India
- Coastal Gujarat Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Samtan Co., Ltd - South Korea
- Bukit Makmur.PT - Indonesia
- Coalindo Energy - Indonesia
- Australian Coal Association
- Malabar Cements Ltd - India
- Mintek Dendrill Indonesia
- Uttam Galva Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Dalmia Cement Bharat India
- Madhucon Powers Ltd - India
- Indika Energy - Indonesia
- Indian Oil Corporation Limited
- Sinarmas Energy and Mining - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Carbofer General Trading SA - India
- IEA Clean Coal Centre - UK
- ICICI Bank Limited - India
- Oldendorff Carriers - Singapore
- Australian Commodity Traders Exchange
- Lanco Infratech Ltd - India
- Aditya Birla Group - India
- Singapore Mercantile Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Makarim & Taira - Indonesia
- Africa Commodities Group - South Africa
- GN Power Mariveles Coal Plant, Philippines
- MS Steel International - UAE
- Kepco SPC Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- Central Java Power - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Gujarat Electricity Regulatory Commission - India
- VISA Power Limited - India
- Directorate Of Revenue Intelligence - India
- New Zealand Coal & Carbon
- Directorate General of MIneral and Coal - Indonesia
- Trasteel International SA, Italy
- The University of Queensland
- Meralco Power Generation, Philippines
- Jindal Steel & Power Ltd - India
- Energy Development Corp, Philippines
- Mercator Lines Limited - India
- Attock Cement Pakistan Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sojitz Corporation - Japan
- South Luzon Thermal Energy Corporation
- Bhatia International Limited - India
- Heidelberg Cement - Germany
- PTC India Limited - India
- Baramulti Group, Indonesia
- Tata Chemicals Ltd - India
- IHS Mccloskey Coal Group - USA
- Pipit Mutiara Jaya. PT, Indonesia
- European Bulk Services B.V. - Netherlands
- The Treasury - Australian Government
- Orica Mining Services - Indonesia
- Metalloyd Limited - United Kingdom
- Georgia Ports Authority, United States
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMG Consultants - Indonesia
- Posco Energy - South Korea
- LBH Netherlands Bv - Netherlands
- Thiess Contractors Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Marubeni Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Larsen & Toubro Limited - India
- GMR Energy Limited - India
- Riau Bara Harum - Indonesia
- Commonwealth Bank - Australia
- Therma Luzon, Inc, Philippines
- Semirara Mining Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Star Paper Mills Limited - India
- CIMB Investment Bank - Malaysia
- Goldman Sachs - Singapore
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Electricity Generating Authority of Thailand
- Essar Steel Hazira Ltd - India
- Chettinad Cement Corporation Ltd - India
- Borneo Indobara - Indonesia
- Coal and Oil Company - UAE
- Neyveli Lignite Corporation Ltd, - India
- Standard Chartered Bank - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Global Business Power Corporation, Philippines
- Eastern Coal Council - USA
- Latin American Coal - Colombia
- Wilmar Investment Holdings
- Interocean Group of Companies - India
- Agrawal Coal Company - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Transport, Egypt
- Siam City Cement PLC, Thailand
- Mercuria Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Ind-Barath Power Infra Limited - India
- Planning Commission, India
- Global Coal Blending Company Limited - Australia
- Semirara Mining and Power Corporation, Philippines
- Tamil Nadu electricity Board
- Rio Tinto Coal - Australia
- Parliament of New Zealand
- Sindya Power Generating Company Private Ltd
- Orica Australia Pty. Ltd.
- Ministry of Finance - Indonesia
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- Gujarat Mineral Development Corp Ltd - India
- Sical Logistics Limited - India
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- Bharathi Cement Corporation - India
- Antam Resourcindo - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Intertek Mineral Services - Indonesia
- The State Trading Corporation of India Ltd
- Eastern Energy - Thailand
- Medco Energi Mining Internasional
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Sree Jayajothi Cements Limited - India
- White Energy Company Limited
- Anglo American - United Kingdom
- Price Waterhouse Coopers - Russia
- Vedanta Resources Plc - India
- Kapuas Tunggal Persada - Indonesia
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- Jorong Barutama Greston.PT - Indonesia
- Kartika Selabumi Mining - Indonesia
- Bhushan Steel Limited - India
- Straits Asia Resources Limited - Singapore
- Port Waratah Coal Services - Australia
- Minerals Council of Australia
- Indo Tambangraya Megah - Indonesia
- San Jose City I Power Corp, Philippines
- Indian Energy Exchange, India
- Kohat Cement Company Ltd. - Pakistan
- Bhoruka Overseas - Indonesia
- Karaikal Port Pvt Ltd - India
- SMC Global Power, Philippines
- Cigading International Bulk Terminal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Pendopo Energi Batubara - Indonesia
- Chamber of Mines of South Africa
- Kobexindo Tractors - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Barasentosa Lestari - Indonesia
- Ministry of Mines - Canada
- PowerSource Philippines DevCo
- Edison Trading Spa - Italy
- Formosa Plastics Group - Taiwan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bayan Resources Tbk. - Indonesia
- Bukit Baiduri Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Renaissance Capital - South Africa
- GAC Shipping (India) Pvt Ltd
- Meenaskhi Energy Private Limited - India
- Iligan Light & Power Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- OPG Power Generation Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Ambuja Cements Ltd - India
- Electricity Authority, New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Kumho Petrochemical, South Korea
- Bangladesh Power Developement Board
- McConnell Dowell - Australia
- Indonesian Coal Mining Association
- SN Aboitiz Power Inc, Philippines
- Power Finance Corporation Ltd., India
- Central Electricity Authority - India
- Salva Resources Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Xindia Steels Limited - India
- ASAPP Information Group - India
- Kaltim Prima Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Bulk Trading Sa - Switzerland
- International Coal Ventures Pvt Ltd - India
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Petron Corporation, Philippines
- TeaM Sual Corporation - Philippines
- GVK Power & Infra Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Indogreen Group - Indonesia
- Mjunction Services Limited - India
- Grasim Industreis Ltd - India
- Kideco Jaya Agung - Indonesia
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