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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, 04 April 16
INDONESIA CS57 COAL INDEX SLIDES SLIGHTLY WEEK OVER WEEK
COALspot.com: Average 5000 GAR coal index of Indonesian origin fell 0.07 percent week over week to averaging $38.88 per ton on this past Friday, ac ...
Monday, 04 April 16
CAPE INDEX JUMPED 70% WEEK ON WEEK
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to rose this week.
The freight market was ...
Friday, 01 April 16
NINE AM - TIME TO GET AN INDONESIAN LANGUAGE VERSION OF YOUR CHARTERPARTIES - CLYDE & CO
KNOWLEDGE TO ELEVATE
For several years, Indonesian law (Article 31, Law Number 24 of 2009) has required that memoranda of understanding (" ...
Friday, 01 April 16
U.S. COAL PRODUCTION UP SLIGHTLY WEEK OVER WEEK - EIA
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 11.6 million shor ...
Thursday, 31 March 16
CAPE: ANOTHER UNEVENTFUL WEEK WITH FIXTURES CONCLUDED AT LAST DONE LEVELS - FEARNLEYS
Cape
Another uneventful week with fixtures concluded at last done levels, CS levels remain around the USD 3 mark, whilst C3 is still just short o ...
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- Australian Coal Association
- Vedanta Resources Plc - India
- Mercuria Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Planning Commission, India
- Sarangani Energy Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Romanian Commodities Exchange
- Deloitte Consulting - India
- Antam Resourcindo - Indonesia
- Therma Luzon, Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Coal Blending Company Limited - Australia
- Sindya Power Generating Company Private Ltd
- IEA Clean Coal Centre - UK
- TeaM Sual Corporation - Philippines
- PNOC Exploration Corporation - Philippines
- Formosa Plastics Group - Taiwan
- GMR Energy Limited - India
- Lanco Infratech Ltd - India
- Trasteel International SA, Italy
- SN Aboitiz Power Inc, Philippines
- Tata Chemicals Ltd - India
- The Treasury - Australian Government
- Kohat Cement Company Ltd. - Pakistan
- Orica Mining Services - Indonesia
- Ambuja Cements Ltd - India
- ASAPP Information Group - India
- GAC Shipping (India) Pvt Ltd
- Minerals Council of Australia
- Commonwealth Bank - Australia
- Directorate General of MIneral and Coal - Indonesia
- Marubeni Corporation - India
- Sakthi Sugars Limited - India
- Bangladesh Power Developement Board
- Meralco Power Generation, Philippines
- VISA Power Limited - India
- SMG Consultants - Indonesia
- Medco Energi Mining Internasional
- Bhushan Steel Limited - India
- Barasentosa Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Billiton Holdings Pty Ltd - Australia
- Sinarmas Energy and Mining - Indonesia
- Bukit Makmur.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- San Jose City I Power Corp, Philippines
- Malabar Cements Ltd - India
- ICICI Bank Limited - India
- Parry Sugars Refinery, India
- Heidelberg Cement - Germany
- Standard Chartered Bank - UAE
- Ceylon Electricity Board - Sri Lanka
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- Baramulti Group, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Oldendorff Carriers - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- Riau Bara Harum - Indonesia
- Kartika Selabumi Mining - Indonesia
- Manunggal Multi Energi - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Mintek Dendrill Indonesia
- Star Paper Mills Limited - India
- Simpson Spence & Young - Indonesia
- Gujarat Sidhee Cement - India
- Bulk Trading Sa - Switzerland
- Offshore Bulk Terminal Pte Ltd, Singapore
- Merrill Lynch Commodities Europe
- Kepco SPC Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Banpu Public Company Limited - Thailand
- Timah Investasi Mineral - Indoneisa
- Global Business Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Oil Corporation Limited
- Interocean Group of Companies - India
- Meenaskhi Energy Private Limited - India
- Central Electricity Authority - India
- Bukit Asam (Persero) Tbk - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Vizag Seaport Private Limited - India
- Power Finance Corporation Ltd., India
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Central Java Power - Indonesia
- LBH Netherlands Bv - Netherlands
- Anglo American - United Kingdom
- Metalloyd Limited - United Kingdom
- Posco Energy - South Korea
- Intertek Mineral Services - Indonesia
- Uttam Galva Steels Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Global Green Power PLC Corporation, Philippines
- Chamber of Mines of South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Mjunction Services Limited - India
- Pendopo Energi Batubara - Indonesia
- Indian Energy Exchange, India
- Bhatia International Limited - India
- Bharathi Cement Corporation - India
- Independent Power Producers Association of India
- Pipit Mutiara Jaya. PT, Indonesia
- Thiess Contractors Indonesia
- Sical Logistics Limited - India
- Sree Jayajothi Cements Limited - India
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Essar Steel Hazira Ltd - India
- Indo Tambangraya Megah - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Indogreen Group - Indonesia
- Renaissance Capital - South Africa
- Gujarat Mineral Development Corp Ltd - India
- Makarim & Taira - Indonesia
- Ministry of Mines - Canada
- Jindal Steel & Power Ltd - India
- Madhucon Powers Ltd - India
- Salva Resources Pvt Ltd - India
- Borneo Indobara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Gujarat Electricity Regulatory Commission - India
- Parliament of New Zealand
- PowerSource Philippines DevCo
- South Luzon Thermal Energy Corporation
- Electricity Authority, New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Latin American Coal - Colombia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- White Energy Company Limited
- Semirara Mining and Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- GVK Power & Infra Limited - India
- Miang Besar Coal Terminal - Indonesia
- Africa Commodities Group - South Africa
- European Bulk Services B.V. - Netherlands
- Attock Cement Pakistan Limited
- Tamil Nadu electricity Board
- McConnell Dowell - Australia
- Eastern Energy - Thailand
- Edison Trading Spa - Italy
- CNBM International Corporation - China
- Holcim Trading Pte Ltd - Singapore
- Cement Manufacturers Association - India
- Indonesian Coal Mining Association
- Wood Mackenzie - Singapore
- Electricity Generating Authority of Thailand
- Cigading International Bulk Terminal - Indonesia
- Indika Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Singapore Mercantile Exchange
- Orica Australia Pty. Ltd.
- Siam City Cement - Thailand
- Thai Mozambique Logistica
- Xindia Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- Goldman Sachs - Singapore
- Petron Corporation, Philippines
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- Grasim Industreis Ltd - India
- SMC Global Power, Philippines
- New Zealand Coal & Carbon
- Toyota Tsusho Corporation, Japan
- Kumho Petrochemical, South Korea
- Binh Thuan Hamico - Vietnam
- Aditya Birla Group - India
- Kalimantan Lumbung Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- Economic Council, Georgia
- Agrawal Coal Company - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Jaiprakash Power Ventures ltd
- London Commodity Brokers - England
- Chettinad Cement Corporation Ltd - India
- MS Steel International - UAE
- Iligan Light & Power Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Coal and Oil Company - UAE
- Altura Mining Limited, Indonesia
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Eastern Coal Council - USA
- Ministry of Transport, Egypt
- Siam City Cement PLC, Thailand
- Videocon Industries ltd - India
- Aboitiz Power Corporation - Philippines
- Coastal Gujarat Power Limited - India
- Straits Asia Resources Limited - Singapore
- Wilmar Investment Holdings
- Bukit Baiduri Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Port Waratah Coal Services - Australia
- Bhoruka Overseas - Indonesia
- Energy Development Corp, Philippines
- Mercator Lines Limited - India
- The University of Queensland
- Samtan Co., Ltd - South Korea
- Australian Commodity Traders Exchange
- Larsen & Toubro Limited - India
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
- Sojitz Corporation - Japan
- Dalmia Cement Bharat India
- Carbofer General Trading SA - India
- Bayan Resources Tbk. - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kobexindo Tractors - Indoneisa
- Kideco Jaya Agung - Indonesia
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