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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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Friday, 25 March 16
DRY BULK SHIPPING FLEET WILL GROW BY 1.3% DURING 2016 - BIMCO | HELLENIC SHIPPING NEWS
The dry bulk market will keep on suffering, at least until the start of 2017 and possibly well after that, should the current balance of supply and ...
Friday, 25 March 16
U.S COAL PRODUCTION DECLINED 9.1% W/W - EIA
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 11.3 million shor ...
Thursday, 24 March 16
PERSISTENT OVERCAPACITY TO PROLONG CHINA'S COAL SECTOR DOWNTURN - FITCH
China's coal sector is likely to remain under pressure in the short to medium term as structural weaknesses in demand and overcapacity persist, ...
Thursday, 24 March 16
SEABORNE TRADE: CHECKING UP ON THE TRENDS - CLARKSON RESEARCH
Following a decline in 2009, seaborne trade grew on average by 4.9% p.a. in 2010-13, reflecting booming import demand in a number of key importing ...
Thursday, 24 March 16
NEWBUILDINGS' PRICES HAVE STARTED TO COME DOWN - ALLIED | HELLENIC SHIPPING NEWS
Newbuildings’ prices have started to come down, as demand has remained subdued for quite some time now. In its latest weekly report, shipbrok ...
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Showing 2506 to 2510 news of total 6871 |
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- Dalmia Cement Bharat India
- PTC India Limited - India
- Gujarat Electricity Regulatory Commission - India
- Chettinad Cement Corporation Ltd - India
- Oldendorff Carriers - Singapore
- Merrill Lynch Commodities Europe
- Bhoruka Overseas - Indonesia
- Kobexindo Tractors - Indoneisa
- Central Electricity Authority - India
- Bulk Trading Sa - Switzerland
- Sakthi Sugars Limited - India
- SMG Consultants - Indonesia
- Indian Energy Exchange, India
- PetroVietnam Power Coal Import and Supply Company
- Timah Investasi Mineral - Indoneisa
- Antam Resourcindo - Indonesia
- Economic Council, Georgia
- Sojitz Corporation - Japan
- Goldman Sachs - Singapore
- Kapuas Tunggal Persada - Indonesia
- Formosa Plastics Group - Taiwan
- Aditya Birla Group - India
- Maharashtra Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- Siam City Cement PLC, Thailand
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- PowerSource Philippines DevCo
- GMR Energy Limited - India
- Bhatia International Limited - India
- Deloitte Consulting - India
- Jorong Barutama Greston.PT - Indonesia
- Meralco Power Generation, Philippines
- CNBM International Corporation - China
- Vizag Seaport Private Limited - India
- Indonesian Coal Mining Association
- Banpu Public Company Limited - Thailand
- Barasentosa Lestari - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Petrochimia International Co. Ltd.- Taiwan
- Standard Chartered Bank - UAE
- Attock Cement Pakistan Limited
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- Gujarat Sidhee Cement - India
- Indika Energy - Indonesia
- Orica Australia Pty. Ltd.
- Thiess Contractors Indonesia
- Ministry of Finance - Indonesia
- LBH Netherlands Bv - Netherlands
- Uttam Galva Steels Limited - India
- Interocean Group of Companies - India
- International Coal Ventures Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Bukit Makmur.PT - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Australian Coal Association
- The University of Queensland
- Renaissance Capital - South Africa
- Lanco Infratech Ltd - India
- Toyota Tsusho Corporation, Japan
- Commonwealth Bank - Australia
- Mercator Lines Limited - India
- GAC Shipping (India) Pvt Ltd
- Makarim & Taira - Indonesia
- Malabar Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- Trasteel International SA, Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- ASAPP Information Group - India
- White Energy Company Limited
- Bangladesh Power Developement Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kohat Cement Company Ltd. - Pakistan
- The State Trading Corporation of India Ltd
- Bayan Resources Tbk. - Indonesia
- Kepco SPC Power Corporation, Philippines
- Petron Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Planning Commission, India
- Simpson Spence & Young - Indonesia
- Manunggal Multi Energi - Indonesia
- Mercuria Energy - Indonesia
- New Zealand Coal & Carbon
- Medco Energi Mining Internasional
- Global Green Power PLC Corporation, Philippines
- Minerals Council of Australia
- Therma Luzon, Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Anglo American - United Kingdom
- Semirara Mining Corp, Philippines
- Indogreen Group - Indonesia
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- Africa Commodities Group - South Africa
- Central Java Power - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Iligan Light & Power Inc, Philippines
- VISA Power Limited - India
- Binh Thuan Hamico - Vietnam
- PNOC Exploration Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Straits Asia Resources Limited - Singapore
- McConnell Dowell - Australia
- Bukit Baiduri Energy - Indonesia
- Metalloyd Limited - United Kingdom
- Orica Mining Services - Indonesia
- Mintek Dendrill Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Coalindo Energy - Indonesia
- Eastern Coal Council - USA
- Vijayanagar Sugar Pvt Ltd - India
- The Treasury - Australian Government
- Electricity Authority, New Zealand
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Mines - Canada
- Sarangani Energy Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- San Jose City I Power Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Georgia Ports Authority, United States
- GVK Power & Infra Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- European Bulk Services B.V. - Netherlands
- India Bulls Power Limited - India
- Mjunction Services Limited - India
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- OPG Power Generation Pvt Ltd - India
- Romanian Commodities Exchange
- Coastal Gujarat Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pendopo Energi Batubara - Indonesia
- SN Aboitiz Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Vedanta Resources Plc - India
- Global Coal Blending Company Limited - Australia
- Videocon Industries ltd - India
- South Luzon Thermal Energy Corporation
- Indo Tambangraya Megah - Indonesia
- Altura Mining Limited, Indonesia
- Xindia Steels Limited - India
- Ministry of Transport, Egypt
- Wood Mackenzie - Singapore
- Leighton Contractors Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- Electricity Generating Authority of Thailand
- Grasim Industreis Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Posco Energy - South Korea
- Coal and Oil Company - UAE
- Tamil Nadu electricity Board
- GN Power Mariveles Coal Plant, Philippines
- Riau Bara Harum - Indonesia
- Heidelberg Cement - Germany
- Salva Resources Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Semirara Mining and Power Corporation, Philippines
- Bhushan Steel Limited - India
- Carbofer General Trading SA - India
- Tata Chemicals Ltd - India
- Cement Manufacturers Association - India
- IEA Clean Coal Centre - UK
- Savvy Resources Ltd - HongKong
- Latin American Coal - Colombia
- Borneo Indobara - Indonesia
- Star Paper Mills Limited - India
- Kideco Jaya Agung - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Parliament of New Zealand
- Karaikal Port Pvt Ltd - India
- Siam City Cement - Thailand
- Independent Power Producers Association of India
- Kumho Petrochemical, South Korea
- Singapore Mercantile Exchange
- Larsen & Toubro Limited - India
- Power Finance Corporation Ltd., India
- AsiaOL BioFuels Corp., Philippines
- MS Steel International - UAE
- Port Waratah Coal Services - Australia
- Essar Steel Hazira Ltd - India
- Kaltim Prima Coal - Indonesia
- Chamber of Mines of South Africa
- Bharathi Cement Corporation - India
- Parry Sugars Refinery, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Intertek Mineral Services - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- TeaM Sual Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- Rio Tinto Coal - Australia
- Jaiprakash Power Ventures ltd
- Alfred C Toepfer International GmbH - Germany
- Kartika Selabumi Mining - Indonesia
- Thai Mozambique Logistica
- Bank of Tokyo Mitsubishi UFJ Ltd
- London Commodity Brokers - England
- Miang Besar Coal Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Agrawal Coal Company - India
- Holcim Trading Pte Ltd - Singapore
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Australian Commodity Traders Exchange
- Indian Oil Corporation Limited
- Marubeni Corporation - India
- Sical Logistics Limited - India
- Baramulti Group, Indonesia
- SMC Global Power, Philippines
- Global Business Power Corporation, Philippines
- Eastern Energy - Thailand
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