We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 24 February 16
PRIVATE EQUITY FUNDS LOOKING TO EXIT SHIPPING, MOST NOTABLY DRY BULK, AS OVERORDERING HAS RESULTED IN EXCESS TONNAGE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The injection of more than $13 billion in shipping from various private equity funds over the past few years has resulted in what many feared would ...
Wednesday, 24 February 16
THIRTEEN - NOT ALWAYS AN UNLUCKY NUMBER? - CLARKSONS
Back in early 1999 the price of a 5 year old Panamax bulkcarrier dipped to $13.5m, and ever since analysts have hailed purchase decisions made at t ...
Monday, 22 February 16
4200 GAR COAL INDEX SETTLES AT $27.02, DOWN 0.07% FROM LAST WEEK
COALspot.com: Average 5000 GAR coal index of Indonesian origin decline 0.17 percent week over week to averaging $38.89 per ton on this past Friday, ...
Monday, 22 February 16
FREIGHT MARKETS PICKED UP SLIGHTLY THIS PAST WEEK
COALspot.com: The freight markets picked up slightly this past week.
The Baltic Dry Index (BDI) of dry-bulk shipping freights, a measure of gl ...
Friday, 19 February 16
INDONESIAN HBA HITS A NEW LOWS BELOW $51 A TON AS OVERSUPPLY, LOW DEMAND WOES PERSIST
COALspot.com: Low coal demand and excess supplies sent Indonesian benchmark coal price further deep in February 2016. HBA has slumped second time t ...
|
|
|
Showing 2551 to 2555 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Sojitz Corporation - Japan
- Minerals Council of Australia
- ICICI Bank Limited - India
- London Commodity Brokers - England
- Mintek Dendrill Indonesia
- Orica Australia Pty. Ltd.
- Georgia Ports Authority, United States
- Siam City Cement - Thailand
- Parry Sugars Refinery, India
- Billiton Holdings Pty Ltd - Australia
- Carbofer General Trading SA - India
- Sakthi Sugars Limited - India
- The Treasury - Australian Government
- Cement Manufacturers Association - India
- Karaikal Port Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Global Green Power PLC Corporation, Philippines
- Energy Link Ltd, New Zealand
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Energy Development Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Iligan Light & Power Inc, Philippines
- Sical Logistics Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Altura Mining Limited, Indonesia
- TeaM Sual Corporation - Philippines
- Malabar Cements Ltd - India
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Timah Investasi Mineral - Indoneisa
- Madhucon Powers Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Interocean Group of Companies - India
- Posco Energy - South Korea
- Metalloyd Limited - United Kingdom
- Deloitte Consulting - India
- Kideco Jaya Agung - Indonesia
- Kepco SPC Power Corporation, Philippines
- PowerSource Philippines DevCo
- Samtan Co., Ltd - South Korea
- Bukit Makmur.PT - Indonesia
- Mercator Lines Limited - India
- Coal and Oil Company - UAE
- IHS Mccloskey Coal Group - USA
- McConnell Dowell - Australia
- Port Waratah Coal Services - Australia
- Australian Commodity Traders Exchange
- Thai Mozambique Logistica
- Power Finance Corporation Ltd., India
- Salva Resources Pvt Ltd - India
- Goldman Sachs - Singapore
- Aditya Birla Group - India
- Coalindo Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Gujarat Electricity Regulatory Commission - India
- Kalimantan Lumbung Energi - Indonesia
- Videocon Industries ltd - India
- Bhatia International Limited - India
- Bayan Resources Tbk. - Indonesia
- Xindia Steels Limited - India
- Krishnapatnam Port Company Ltd. - India
- Economic Council, Georgia
- AsiaOL BioFuels Corp., Philippines
- Central Electricity Authority - India
- Anglo American - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- Essar Steel Hazira Ltd - India
- Chettinad Cement Corporation Ltd - India
- White Energy Company Limited
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Transport, Egypt
- Jaiprakash Power Ventures ltd
- South Luzon Thermal Energy Corporation
- Eastern Coal Council - USA
- Ceylon Electricity Board - Sri Lanka
- Meralco Power Generation, Philippines
- Directorate Of Revenue Intelligence - India
- GMR Energy Limited - India
- IEA Clean Coal Centre - UK
- Bulk Trading Sa - Switzerland
- Savvy Resources Ltd - HongKong
- Ministry of Finance - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- PNOC Exploration Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Barasentosa Lestari - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Riau Bara Harum - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Wilmar Investment Holdings
- International Coal Ventures Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- Lanco Infratech Ltd - India
- Central Java Power - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Uttam Galva Steels Limited - India
- Bhoruka Overseas - Indonesia
- Antam Resourcindo - Indonesia
- Indogreen Group - Indonesia
- Singapore Mercantile Exchange
- VISA Power Limited - India
- Therma Luzon, Inc, Philippines
- Africa Commodities Group - South Africa
- MS Steel International - UAE
- Tamil Nadu electricity Board
- Borneo Indobara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Holcim Trading Pte Ltd - Singapore
- Gujarat Sidhee Cement - India
- Parliament of New Zealand
- Globalindo Alam Lestari - Indonesia
- Bhushan Steel Limited - India
- Indika Energy - Indonesia
- Ambuja Cements Ltd - India
- Sindya Power Generating Company Private Ltd
- Rio Tinto Coal - Australia
- Sarangani Energy Corporation, Philippines
- Star Paper Mills Limited - India
- SN Aboitiz Power Inc, Philippines
- Vizag Seaport Private Limited - India
- San Jose City I Power Corp, Philippines
- Dalmia Cement Bharat India
- SMG Consultants - Indonesia
- Siam City Cement PLC, Thailand
- Intertek Mineral Services - Indonesia
- Commonwealth Bank - Australia
- The University of Queensland
- Global Coal Blending Company Limited - Australia
- Sree Jayajothi Cements Limited - India
- Kobexindo Tractors - Indoneisa
- Ind-Barath Power Infra Limited - India
- Straits Asia Resources Limited - Singapore
- CIMB Investment Bank - Malaysia
- Semirara Mining Corp, Philippines
- Makarim & Taira - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Petron Corporation, Philippines
- Planning Commission, India
- Larsen & Toubro Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Generating Authority of Thailand
- Indian Oil Corporation Limited
- Global Business Power Corporation, Philippines
- Romanian Commodities Exchange
- Baramulti Group, Indonesia
- Toyota Tsusho Corporation, Japan
- Kumho Petrochemical, South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Pendopo Energi Batubara - Indonesia
- Coastal Gujarat Power Limited - India
- India Bulls Power Limited - India
- Independent Power Producers Association of India
- Heidelberg Cement - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Maheswari Brothers Coal Limited - India
- Kartika Selabumi Mining - Indonesia
- PTC India Limited - India
- Chamber of Mines of South Africa
- Neyveli Lignite Corporation Ltd, - India
- Wood Mackenzie - Singapore
- GVK Power & Infra Limited - India
- Merrill Lynch Commodities Europe
- Kaltim Prima Coal - Indonesia
- Jindal Steel & Power Ltd - India
- Agrawal Coal Company - India
- Renaissance Capital - South Africa
- Miang Besar Coal Terminal - Indonesia
- Trasteel International SA, Italy
- Electricity Authority, New Zealand
- Indonesian Coal Mining Association
- Aboitiz Power Corporation - Philippines
- ASAPP Information Group - India
- New Zealand Coal & Carbon
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Tata Chemicals Ltd - India
- Formosa Plastics Group - Taiwan
- Price Waterhouse Coopers - Russia
- Meenaskhi Energy Private Limited - India
- Binh Thuan Hamico - Vietnam
- Marubeni Corporation - India
- Thiess Contractors Indonesia
- Mjunction Services Limited - India
- SMC Global Power, Philippines
- Banpu Public Company Limited - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Cigading International Bulk Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Bangladesh Power Developement Board
- GAC Shipping (India) Pvt Ltd
- Vedanta Resources Plc - India
- Australian Coal Association
- Alfred C Toepfer International GmbH - Germany
- Indian Energy Exchange, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bharathi Cement Corporation - India
- Medco Energi Mining Internasional
- Indo Tambangraya Megah - Indonesia
- Orica Mining Services - Indonesia
- Grasim Industreis Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kohat Cement Company Ltd. - Pakistan
- Oldendorff Carriers - Singapore
- Edison Trading Spa - Italy
- European Bulk Services B.V. - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Mines - Canada
- Eastern Energy - Thailand
- CNBM International Corporation - China
|
| |
| |
|
