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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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Wednesday, 09 March 16
U.S. COAL EXPORTS DECLINED 24% (74 MMST) IN 2015; COAL PRODUCTION IS EXPECTED TO DECREASE BY 111 MMST IN 2016 - EIA
U.S. Coal Supply
EIA estimates that U.S. coal production for February 2016 was 54 million short tons (MMst), a 4 MMst (7%) decrease from the prev ...
Wednesday, 09 March 16
RI MAY HAVE TO IMPORT COAL FOR FUTURE POWER PLANTS: STUDY - THE JAKARTA POST
With coal prices continuing to decline, Indonesia will struggle to provide the coal needed to fire up its power stations in the near future, a stud ...
Tuesday, 08 March 16
INDONESIA HIKES COAL BENCHMARK PRICE FOR THE FIRST TIME IN 12 MONTHS
COALspot.com: Low coal demand and excess supplies sent Indonesian benchmark coal price further deep in February 2016, but up slightly in Mar ...
Tuesday, 08 March 16
THE DRY CARGO MARKET ENDURED ONE OF ITS MOST DIFFICULT YEARS IN 2015, EXPERIENCING LOWS NOT SEEN SINCE THE MID 1980S - CLARKSONS
Whilst shipping and offshore markets have seen some good opportunities during 2015, overall there have been unprecedented challenges, so we are ver ...
Monday, 07 March 16
INDONESIAN 5700 GAR COAL INDEX DECLINE $0.05 A TON WEEK OVER WEEK
COALspot.com: Average 5000 GAR coal index of Indonesian origin decline 0.28 percent week over week to averaging $38.66 per ton on this past Friday, ...
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Showing 2531 to 2535 news of total 6871 |
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- Bhatia International Limited - India
- Indogreen Group - Indonesia
- Renaissance Capital - South Africa
- Savvy Resources Ltd - HongKong
- Malabar Cements Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Economic Council, Georgia
- Billiton Holdings Pty Ltd - Australia
- Parliament of New Zealand
- Heidelberg Cement - Germany
- Borneo Indobara - Indonesia
- Indika Energy - Indonesia
- Energy Development Corp, Philippines
- Standard Chartered Bank - UAE
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Indian Energy Exchange, India
- Chettinad Cement Corporation Ltd - India
- Orica Mining Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Cement Manufacturers Association - India
- Bulk Trading Sa - Switzerland
- Marubeni Corporation - India
- Kobexindo Tractors - Indoneisa
- Agrawal Coal Company - India
- PTC India Limited - India
- Tata Chemicals Ltd - India
- Thai Mozambique Logistica
- India Bulls Power Limited - India
- SMC Global Power, Philippines
- Central Electricity Authority - India
- Semirara Mining and Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Electricity Authority, New Zealand
- ASAPP Information Group - India
- Neyveli Lignite Corporation Ltd, - India
- Africa Commodities Group - South Africa
- Maheswari Brothers Coal Limited - India
- Ambuja Cements Ltd - India
- Trasteel International SA, Italy
- SN Aboitiz Power Inc, Philippines
- Siam City Cement - Thailand
- San Jose City I Power Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Siam City Cement PLC, Thailand
- Ministry of Finance - Indonesia
- Attock Cement Pakistan Limited
- South Luzon Thermal Energy Corporation
- Oldendorff Carriers - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indonesian Coal Mining Association
- White Energy Company Limited
- Central Java Power - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Vedanta Resources Plc - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kartika Selabumi Mining - Indonesia
- Baramulti Group, Indonesia
- Lanco Infratech Ltd - India
- Eastern Coal Council - USA
- Coastal Gujarat Power Limited - India
- Romanian Commodities Exchange
- Tamil Nadu electricity Board
- The University of Queensland
- Aboitiz Power Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- LBH Netherlands Bv - Netherlands
- Jorong Barutama Greston.PT - Indonesia
- Makarim & Taira - Indonesia
- VISA Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Sidhee Cement - India
- Commonwealth Bank - Australia
- Port Waratah Coal Services - Australia
- Global Green Power PLC Corporation, Philippines
- Mintek Dendrill Indonesia
- Sarangani Energy Corporation, Philippines
- Mercator Lines Limited - India
- PNOC Exploration Corporation - Philippines
- Essar Steel Hazira Ltd - India
- Bukit Makmur.PT - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Wilmar Investment Holdings
- Georgia Ports Authority, United States
- Riau Bara Harum - Indonesia
- GMR Energy Limited - India
- Gujarat Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- Altura Mining Limited, Indonesia
- Jaiprakash Power Ventures ltd
- Karaikal Port Pvt Ltd - India
- Bangladesh Power Developement Board
- Ceylon Electricity Board - Sri Lanka
- Vizag Seaport Private Limited - India
- Videocon Industries ltd - India
- Parry Sugars Refinery, India
- Madhucon Powers Ltd - India
- Sical Logistics Limited - India
- AsiaOL BioFuels Corp., Philippines
- Directorate General of MIneral and Coal - Indonesia
- TeaM Sual Corporation - Philippines
- Posco Energy - South Korea
- Edison Trading Spa - Italy
- Deloitte Consulting - India
- Alfred C Toepfer International GmbH - Germany
- ICICI Bank Limited - India
- Petron Corporation, Philippines
- Coalindo Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Sindya Power Generating Company Private Ltd
- Bhoruka Overseas - Indonesia
- MS Steel International - UAE
- Power Finance Corporation Ltd., India
- Orica Australia Pty. Ltd.
- London Commodity Brokers - England
- Salva Resources Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Thiess Contractors Indonesia
- Anglo American - United Kingdom
- Chamber of Mines of South Africa
- New Zealand Coal & Carbon
- PowerSource Philippines DevCo
- Bhushan Steel Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- European Bulk Services B.V. - Netherlands
- Simpson Spence & Young - Indonesia
- Global Coal Blending Company Limited - Australia
- Binh Thuan Hamico - Vietnam
- Aditya Birla Group - India
- Star Paper Mills Limited - India
- Mercuria Energy - Indonesia
- Interocean Group of Companies - India
- Sojitz Corporation - Japan
- Kepco SPC Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Price Waterhouse Coopers - Russia
- Uttam Galva Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- IEA Clean Coal Centre - UK
- Coal and Oil Company - UAE
- Mjunction Services Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Australian Coal Association
- Meralco Power Generation, Philippines
- SMG Consultants - Indonesia
- CNBM International Corporation - China
- Leighton Contractors Pty Ltd - Australia
- Therma Luzon, Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Semirara Mining Corp, Philippines
- Wood Mackenzie - Singapore
- Timah Investasi Mineral - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Medco Energi Mining Internasional
- Formosa Plastics Group - Taiwan
- Straits Asia Resources Limited - Singapore
- Grasim Industreis Ltd - India
- Jindal Steel & Power Ltd - India
- Latin American Coal - Colombia
- Pendopo Energi Batubara - Indonesia
- GVK Power & Infra Limited - India
- Australian Commodity Traders Exchange
- Asmin Koalindo Tuhup - Indonesia
- Bharathi Cement Corporation - India
- Kumho Petrochemical, South Korea
- Sinarmas Energy and Mining - Indonesia
- McConnell Dowell - Australia
- Kohat Cement Company Ltd. - Pakistan
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- Eastern Energy - Thailand
- CIMB Investment Bank - Malaysia
- Rio Tinto Coal - Australia
- PetroVietnam Power Coal Import and Supply Company
- Independent Power Producers Association of India
- Planning Commission, India
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Sakthi Sugars Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bayan Resources Tbk. - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Minerals Council of Australia
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- Global Business Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Antam Resourcindo - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Ministry of Mines - Canada
- Meenaskhi Energy Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Banpu Public Company Limited - Thailand
- Barasentosa Lestari - Indonesia
- Ministry of Transport, Egypt
- Kaltim Prima Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Indian Oil Corporation Limited
- Goldman Sachs - Singapore
- Globalindo Alam Lestari - Indonesia
- Dalmia Cement Bharat India
- Merrill Lynch Commodities Europe
- The Treasury - Australian Government
- Iligan Light & Power Inc, Philippines
- The State Trading Corporation of India Ltd
- Sree Jayajothi Cements Limited - India
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