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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, 11 March 16
US WEEKLY COAL PRODUCTION DOWN BY 0.5 MMST
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 12.6 million shor ...
Friday, 11 March 16
FORTESCUE'S MOU WITH VALE COULD STRENGTHEN ITS BUSINESS PROFILE - FITCH
COALspot.com: Fitch Ratings says that Australia-based Fortescue Metals Group Limited's (BB+/Negative) memorandum of understanding (MOU) with Br ...
Thursday, 10 March 16
CHINA'S NEW POLICY PLAN COULD BE POSITIVE FOR SHIPPING, BUT TARGETS SEEM RATHER AMBITIOUS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
China set out its new policy plan during the course of the past weekend, but it seems to have set some very ambitious goals, which could be difficu ...
Thursday, 10 March 16
U.S. COAL EXPORTS DECLINED 23% IN 2015, AS COAL IMPORTS REMAINED STEADY
COALspot.com: The United States remains a net exporter of coal, exporting 74.0 million short tons (MMst) and importing 11 MMst in 2015.
Accord ...
Thursday, 10 March 16
IT FEELS SAFE TO SAY THAT THE MARKET IS SLOWLY AND PAINFULLY REGAINING ITS BALANCE
With the BDI marking its third consecutive positive weekly closing, it feels safe to say that the market is regaining its balance; slowly and painf ...
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Showing 2526 to 2530 news of total 6871 |
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- Gujarat Mineral Development Corp Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Larsen & Toubro Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Binh Thuan Hamico - Vietnam
- Globalindo Alam Lestari - Indonesia
- Kepco SPC Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- White Energy Company Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Intertek Mineral Services - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Carbofer General Trading SA - India
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Metalloyd Limited - United Kingdom
- Bhoruka Overseas - Indonesia
- Aboitiz Power Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Commonwealth Bank - Australia
- Coal and Oil Company - UAE
- Pendopo Energi Batubara - Indonesia
- Georgia Ports Authority, United States
- Petron Corporation, Philippines
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Power Finance Corporation Ltd., India
- VISA Power Limited - India
- Central Electricity Authority - India
- Standard Chartered Bank - UAE
- Mercuria Energy - Indonesia
- Orica Australia Pty. Ltd.
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Ceylon Electricity Board - Sri Lanka
- India Bulls Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Sakthi Sugars Limited - India
- Port Waratah Coal Services - Australia
- PNOC Exploration Corporation - Philippines
- CNBM International Corporation - China
- Mintek Dendrill Indonesia
- Oldendorff Carriers - Singapore
- Planning Commission, India
- Directorate General of MIneral and Coal - Indonesia
- Ambuja Cements Ltd - India
- Ministry of Finance - Indonesia
- The University of Queensland
- Malabar Cements Ltd - India
- Samtan Co., Ltd - South Korea
- Formosa Plastics Group - Taiwan
- San Jose City I Power Corp, Philippines
- LBH Netherlands Bv - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Economic Council, Georgia
- Bulk Trading Sa - Switzerland
- Alfred C Toepfer International GmbH - Germany
- Sarangani Energy Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Orica Mining Services - Indonesia
- Star Paper Mills Limited - India
- Eastern Coal Council - USA
- GMR Energy Limited - India
- Barasentosa Lestari - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Global Green Power PLC Corporation, Philippines
- Mjunction Services Limited - India
- Price Waterhouse Coopers - Russia
- Banpu Public Company Limited - Thailand
- Kalimantan Lumbung Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Sidhee Cement - India
- SMC Global Power, Philippines
- Kapuas Tunggal Persada - Indonesia
- Aditya Birla Group - India
- SMG Consultants - Indonesia
- Wilmar Investment Holdings
- Australian Coal Association
- Renaissance Capital - South Africa
- Madhucon Powers Ltd - India
- Bharathi Cement Corporation - India
- Wood Mackenzie - Singapore
- MS Steel International - UAE
- GVK Power & Infra Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement - Thailand
- The Treasury - Australian Government
- IHS Mccloskey Coal Group - USA
- Directorate Of Revenue Intelligence - India
- Deloitte Consulting - India
- Edison Trading Spa - Italy
- Minerals Council of Australia
- GAC Shipping (India) Pvt Ltd
- Chettinad Cement Corporation Ltd - India
- Savvy Resources Ltd - HongKong
- Heidelberg Cement - Germany
- Timah Investasi Mineral - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- Vijayanagar Sugar Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Energy Development Corp, Philippines
- Medco Energi Mining Internasional
- Semirara Mining Corp, Philippines
- London Commodity Brokers - England
- Eastern Energy - Thailand
- Altura Mining Limited, Indonesia
- Bayan Resources Tbk. - Indonesia
- Rio Tinto Coal - Australia
- Independent Power Producers Association of India
- Neyveli Lignite Corporation Ltd, - India
- Antam Resourcindo - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- AsiaOL BioFuels Corp., Philippines
- Sinarmas Energy and Mining - Indonesia
- Essar Steel Hazira Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Africa Commodities Group - South Africa
- Billiton Holdings Pty Ltd - Australia
- Toyota Tsusho Corporation, Japan
- Uttam Galva Steels Limited - India
- Sical Logistics Limited - India
- Anglo American - United Kingdom
- Xindia Steels Limited - India
- Jindal Steel & Power Ltd - India
- Bangladesh Power Developement Board
- Agrawal Coal Company - India
- Krishnapatnam Port Company Ltd. - India
- Central Java Power - Indonesia
- Ministry of Transport, Egypt
- Manunggal Multi Energi - Indonesia
- Simpson Spence & Young - Indonesia
- Baramulti Group, Indonesia
- Thai Mozambique Logistica
- IEA Clean Coal Centre - UK
- Bhushan Steel Limited - India
- Cigading International Bulk Terminal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bhatia International Limited - India
- International Coal Ventures Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Energy Exchange, India
- Latin American Coal - Colombia
- TeaM Sual Corporation - Philippines
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- Therma Luzon, Inc, Philippines
- Attock Cement Pakistan Limited
- Kobexindo Tractors - Indoneisa
- Mercator Lines Limited - India
- Merrill Lynch Commodities Europe
- Borneo Indobara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Global Business Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Vizag Seaport Private Limited - India
- Indika Energy - Indonesia
- New Zealand Coal & Carbon
- Parliament of New Zealand
- Salva Resources Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Tamil Nadu electricity Board
- Chamber of Mines of South Africa
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Meenaskhi Energy Private Limited - India
- Bukit Makmur.PT - Indonesia
- Coastal Gujarat Power Limited - India
- Electricity Authority, New Zealand
- Maheswari Brothers Coal Limited - India
- Cement Manufacturers Association - India
- PowerSource Philippines DevCo
- ICICI Bank Limited - India
- Posco Energy - South Korea
- Dalmia Cement Bharat India
- Sojitz Corporation - Japan
- Sindya Power Generating Company Private Ltd
- McConnell Dowell - Australia
- Kideco Jaya Agung - Indonesia
- Romanian Commodities Exchange
- Kaltim Prima Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Parry Sugars Refinery, India
- Thiess Contractors Indonesia
- Marubeni Corporation - India
- Tata Chemicals Ltd - India
- Goldman Sachs - Singapore
- CIMB Investment Bank - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Interocean Group of Companies - India
- Australian Commodity Traders Exchange
- Indogreen Group - Indonesia
- Indian Oil Corporation Limited
- Meralco Power Generation, Philippines
- Vedanta Resources Plc - India
- Makarim & Taira - Indonesia
- Grasim Industreis Ltd - India
- PTC India Limited - India
- Coalindo Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Maharashtra Electricity Regulatory Commission - India
- Lanco Infratech Ltd - India
- Sree Jayajothi Cements Limited - India
- Jaiprakash Power Ventures ltd
- SN Aboitiz Power Inc, Philippines
- Videocon Industries ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Trasteel International SA, Italy
- South Luzon Thermal Energy Corporation
- Indonesian Coal Mining Association
- Bukit Baiduri Energy - Indonesia
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