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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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- Chamber of Mines of South Africa
- SMC Global Power, Philippines
- Lanco Infratech Ltd - India
- SN Aboitiz Power Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Petron Corporation, Philippines
- Oldendorff Carriers - Singapore
- Bayan Resources Tbk. - Indonesia
- Bangladesh Power Developement Board
- Kaltim Prima Coal - Indonesia
- Indonesian Coal Mining Association
- Standard Chartered Bank - UAE
- Borneo Indobara - Indonesia
- Bhushan Steel Limited - India
- Power Finance Corporation Ltd., India
- Global Business Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Orica Mining Services - Indonesia
- Star Paper Mills Limited - India
- Agrawal Coal Company - India
- Toyota Tsusho Corporation, Japan
- OPG Power Generation Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Latin American Coal - Colombia
- Kepco SPC Power Corporation, Philippines
- Thiess Contractors Indonesia
- PTC India Limited - India
- Sinarmas Energy and Mining - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Independent Power Producers Association of India
- Therma Luzon, Inc, Philippines
- IEA Clean Coal Centre - UK
- ASAPP Information Group - India
- Kideco Jaya Agung - Indonesia
- Electricity Generating Authority of Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Marubeni Corporation - India
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Global Green Power PLC Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Carbofer General Trading SA - India
- Intertek Mineral Services - Indonesia
- Eastern Energy - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Siam City Cement - Thailand
- SMG Consultants - Indonesia
- Aditya Birla Group - India
- Eastern Coal Council - USA
- Larsen & Toubro Limited - India
- Manunggal Multi Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coalindo Energy - Indonesia
- Australian Commodity Traders Exchange
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- White Energy Company Limited
- Bahari Cakrawala Sebuku - Indonesia
- AsiaOL BioFuels Corp., Philippines
- McConnell Dowell - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Altura Mining Limited, Indonesia
- Ministry of Transport, Egypt
- Kapuas Tunggal Persada - Indonesia
- Mercuria Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Sarangani Energy Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Port Waratah Coal Services - Australia
- Formosa Plastics Group - Taiwan
- ICICI Bank Limited - India
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- MS Steel International - UAE
- Renaissance Capital - South Africa
- Directorate General of MIneral and Coal - Indonesia
- Sojitz Corporation - Japan
- European Bulk Services B.V. - Netherlands
- Jorong Barutama Greston.PT - Indonesia
- Merrill Lynch Commodities Europe
- Mjunction Services Limited - India
- Barasentosa Lestari - Indonesia
- PowerSource Philippines DevCo
- Semirara Mining and Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Bukit Makmur.PT - Indonesia
- Tata Chemicals Ltd - India
- Parliament of New Zealand
- Energy Link Ltd, New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Rashtriya Ispat Nigam Limited - India
- Gujarat Sidhee Cement - India
- Metalloyd Limited - United Kingdom
- Dalmia Cement Bharat India
- Mercator Lines Limited - India
- Bharathi Cement Corporation - India
- Globalindo Alam Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Asmin Koalindo Tuhup - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Romanian Commodities Exchange
- LBH Netherlands Bv - Netherlands
- Straits Asia Resources Limited - Singapore
- Edison Trading Spa - Italy
- Makarim & Taira - Indonesia
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- Cement Manufacturers Association - India
- Aboitiz Power Corporation - Philippines
- Uttam Galva Steels Limited - India
- Goldman Sachs - Singapore
- Indika Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Coal and Oil Company - UAE
- The University of Queensland
- Australian Coal Association
- Bhoruka Overseas - Indonesia
- Georgia Ports Authority, United States
- Bulk Trading Sa - Switzerland
- GVK Power & Infra Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- Economic Council, Georgia
- Bhatia International Limited - India
- Indogreen Group - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Parry Sugars Refinery, India
- Maheswari Brothers Coal Limited - India
- Africa Commodities Group - South Africa
- Leighton Contractors Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- International Coal Ventures Pvt Ltd - India
- Anglo American - United Kingdom
- GMR Energy Limited - India
- Minerals Council of Australia
- Rio Tinto Coal - Australia
- Karaikal Port Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Billiton Holdings Pty Ltd - Australia
- Medco Energi Mining Internasional
- Pipit Mutiara Jaya. PT, Indonesia
- Sree Jayajothi Cements Limited - India
- Grasim Industreis Ltd - India
- Orica Australia Pty. Ltd.
- Savvy Resources Ltd - HongKong
- Kumho Petrochemical, South Korea
- Gujarat Electricity Regulatory Commission - India
- Pendopo Energi Batubara - Indonesia
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Banpu Public Company Limited - Thailand
- VISA Power Limited - India
- India Bulls Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Gujarat Mineral Development Corp Ltd - India
- San Jose City I Power Corp, Philippines
- Iligan Light & Power Inc, Philippines
- New Zealand Coal & Carbon
- Planning Commission, India
- Trasteel International SA, Italy
- Malabar Cements Ltd - India
- Tamil Nadu electricity Board
- Meralco Power Generation, Philippines
- Semirara Mining Corp, Philippines
- Wilmar Investment Holdings
- Thai Mozambique Logistica
- Meenaskhi Energy Private Limited - India
- Riau Bara Harum - Indonesia
- Attock Cement Pakistan Limited
- Kobexindo Tractors - Indoneisa
- Salva Resources Pvt Ltd - India
- Interocean Group of Companies - India
- PetroVietnam Power Coal Import and Supply Company
- Singapore Mercantile Exchange
- Vizag Seaport Private Limited - India
- Energy Development Corp, Philippines
- Jindal Steel & Power Ltd - India
- Madhucon Powers Ltd - India
- Deloitte Consulting - India
- Siam City Cement PLC, Thailand
- TeaM Sual Corporation - Philippines
- Wood Mackenzie - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Sical Logistics Limited - India
- Krishnapatnam Port Company Ltd. - India
- Chettinad Cement Corporation Ltd - India
- Xindia Steels Limited - India
- Heidelberg Cement - Germany
- Posco Energy - South Korea
- Bukit Baiduri Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Videocon Industries ltd - India
- Ambuja Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Vedanta Resources Plc - India
- Ind-Barath Power Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Miang Besar Coal Terminal - Indonesia
- The Treasury - Australian Government
- Central Electricity Authority - India
- Baramulti Group, Indonesia
- Binh Thuan Hamico - Vietnam
- Antam Resourcindo - Indonesia
- Ministry of Finance - Indonesia
- Central Java Power - Indonesia
- Sakthi Sugars Limited - India
- Samtan Co., Ltd - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- Maharashtra Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- South Luzon Thermal Energy Corporation
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