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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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Thursday, 03 March 16
RIO TINTO COMPLETES SALE OF INTEREST IN BENGALLA JOINT VENTURE FOR US$616.7 MILLION
COALspot.com: Rio Tinto has completed the sale of its 40 per cent interest in the Bengalla coal Joint Venture in Australia to New Hope Corporation ...
Wednesday, 02 March 16
RE-EVALUATION OF MINING LICENSES CLEAN AND CLEAR STATUS IN INDONESIA
COALspot.com: In connection with the transfer of mining authority from Regents/Mayors to Governors1 and from Regents/Mayors and Governors to t ...
Wednesday, 02 March 16
OIL MY GOD.....!!!!
OIL my GOD….!!!!
The oil price “crash” that started in 2014 was caused by a glut of practically unwanted oil. Producers had be ...
Tuesday, 01 March 16
CS 42 (4200 GAR) COAL INDEX CLOSED AT US$ 27.11 A TON ON 26 FEBRUARY
COALspot.com: Average 5000 GAR coal index of Indonesian origin decline 0.31 percent week over week to averaging $38.77 per ton on this past Friday, ...
Tuesday, 01 March 16
CAN BULKCARRIER SUPPLY CUTS RESTORE SOME BALANCE? - CLARKSONS
The easing in bulkcarrier deliveries and the accelerated pace of demolition in recent years has seen bulkcarrier fleet growth slow from a rapid 17% ...
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Iligan Light & Power Inc, Philippines
- Indian Oil Corporation Limited
- PetroVietnam Power Coal Import and Supply Company
- Jorong Barutama Greston.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- Port Waratah Coal Services - Australia
- Uttam Galva Steels Limited - India
- Wilmar Investment Holdings
- Wood Mackenzie - Singapore
- Trasteel International SA, Italy
- Karaikal Port Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Thai Mozambique Logistica
- Pipit Mutiara Jaya. PT, Indonesia
- Kumho Petrochemical, South Korea
- IHS Mccloskey Coal Group - USA
- Petrochimia International Co. Ltd.- Taiwan
- Jindal Steel & Power Ltd - India
- Videocon Industries ltd - India
- Marubeni Corporation - India
- Edison Trading Spa - Italy
- Medco Energi Mining Internasional
- New Zealand Coal & Carbon
- Bank of Tokyo Mitsubishi UFJ Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Attock Cement Pakistan Limited
- GVK Power & Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Australian Coal Association
- Planning Commission, India
- Posco Energy - South Korea
- International Coal Ventures Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Formosa Plastics Group - Taiwan
- Maheswari Brothers Coal Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Orica Mining Services - Indonesia
- SMG Consultants - Indonesia
- Central Electricity Authority - India
- Toyota Tsusho Corporation, Japan
- London Commodity Brokers - England
- Energy Link Ltd, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Makarim & Taira - Indonesia
- The University of Queensland
- Bharathi Cement Corporation - India
- White Energy Company Limited
- Bhatia International Limited - India
- The State Trading Corporation of India Ltd
- Essar Steel Hazira Ltd - India
- Indian Energy Exchange, India
- Baramulti Group, Indonesia
- Manunggal Multi Energi - Indonesia
- Globalindo Alam Lestari - Indonesia
- Thiess Contractors Indonesia
- Commonwealth Bank - Australia
- Aboitiz Power Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bulk Trading Sa - Switzerland
- Petron Corporation, Philippines
- Deloitte Consulting - India
- Gujarat Electricity Regulatory Commission - India
- GMR Energy Limited - India
- Madhucon Powers Ltd - India
- Bukit Baiduri Energy - Indonesia
- Energy Development Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Finance - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kalimantan Lumbung Energi - Indonesia
- South Luzon Thermal Energy Corporation
- Billiton Holdings Pty Ltd - Australia
- Price Waterhouse Coopers - Russia
- Grasim Industreis Ltd - India
- Larsen & Toubro Limited - India
- Chamber of Mines of South Africa
- Coal and Oil Company - UAE
- Global Green Power PLC Corporation, Philippines
- Orica Australia Pty. Ltd.
- Eastern Coal Council - USA
- Power Finance Corporation Ltd., India
- San Jose City I Power Corp, Philippines
- Ambuja Cements Ltd - India
- Ministry of Transport, Egypt
- Coalindo Energy - Indonesia
- Romanian Commodities Exchange
- Antam Resourcindo - Indonesia
- Economic Council, Georgia
- Borneo Indobara - Indonesia
- Bhushan Steel Limited - India
- Sinarmas Energy and Mining - Indonesia
- Tata Chemicals Ltd - India
- Indonesian Coal Mining Association
- Xindia Steels Limited - India
- Neyveli Lignite Corporation Ltd, - India
- MS Steel International - UAE
- Africa Commodities Group - South Africa
- Samtan Co., Ltd - South Korea
- McConnell Dowell - Australia
- Kartika Selabumi Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Leighton Contractors Pty Ltd - Australia
- Tamil Nadu electricity Board
- Latin American Coal - Colombia
- Pendopo Energi Batubara - Indonesia
- Minerals Council of Australia
- Central Java Power - Indonesia
- Sree Jayajothi Cements Limited - India
- Dalmia Cement Bharat India
- Independent Power Producers Association of India
- Kideco Jaya Agung - Indonesia
- PNOC Exploration Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Aditya Birla Group - India
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Jaiprakash Power Ventures ltd
- Kobexindo Tractors - Indoneisa
- Sakthi Sugars Limited - India
- IEA Clean Coal Centre - UK
- Kaltim Prima Coal - Indonesia
- Indika Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- ASAPP Information Group - India
- Carbofer General Trading SA - India
- Siam City Cement - Thailand
- Cement Manufacturers Association - India
- SMC Global Power, Philippines
- Sarangani Energy Corporation, Philippines
- Vizag Seaport Private Limited - India
- Australian Commodity Traders Exchange
- Georgia Ports Authority, United States
- Bhoruka Overseas - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Banpu Public Company Limited - Thailand
- Mercuria Energy - Indonesia
- Sojitz Corporation - Japan
- India Bulls Power Limited - India
- Global Coal Blending Company Limited - Australia
- Mintek Dendrill Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Ministry of Mines - Canada
- Timah Investasi Mineral - Indoneisa
- Malabar Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Electricity Authority, New Zealand
- Rio Tinto Coal - Australia
- European Bulk Services B.V. - Netherlands
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- The Treasury - Australian Government
- Oldendorff Carriers - Singapore
- Standard Chartered Bank - UAE
- Savvy Resources Ltd - HongKong
- Gujarat Sidhee Cement - India
- Heidelberg Cement - Germany
- Ind-Barath Power Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Rashtriya Ispat Nigam Limited - India
- Agrawal Coal Company - India
- Global Business Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Mercator Lines Limited - India
- Meralco Power Generation, Philippines
- Simpson Spence & Young - Indonesia
- Mjunction Services Limited - India
- Binh Thuan Hamico - Vietnam
- Bukit Asam (Persero) Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Star Paper Mills Limited - India
- Interocean Group of Companies - India
- Meenaskhi Energy Private Limited - India
- Vedanta Resources Plc - India
- Electricity Generating Authority of Thailand
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- Salva Resources Pvt Ltd - India
- Anglo American - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Eastern Energy - Thailand
- Miang Besar Coal Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Parry Sugars Refinery, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Riau Bara Harum - Indonesia
- ICICI Bank Limited - India
- Indogreen Group - Indonesia
- Renaissance Capital - South Africa
- Parliament of New Zealand
- Bangladesh Power Developement Board
- Bahari Cakrawala Sebuku - Indonesia
- Sical Logistics Limited - India
- OPG Power Generation Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Singapore Mercantile Exchange
- PTC India Limited - India
- Ceylon Electricity Board - Sri Lanka
- Bayan Resources Tbk. - Indonesia
- Goldman Sachs - Singapore
- Coastal Gujarat Power Limited - India
- Cigading International Bulk Terminal - Indonesia
- Lanco Infratech Ltd - India
- Merrill Lynch Commodities Europe
- PowerSource Philippines DevCo
- Kapuas Tunggal Persada - Indonesia
- CNBM International Corporation - China
- VISA Power Limited - India
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