We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 27 April 16
THE OCEAN SHIPPING EXPERIENCED DRAMATIC VOLATILITY IN THE BEGINNING OF 2016 - PANOS TSILINGIRIS
 Shipping’s new (ab)normal
The global economy and ocean shipping experienced dramatic volatility in the beginning of 2016 and as the global economy undergoes structural changes, so does the derived ocean shipping activity, principally epitomized by the following abnormal trends:
(i) Constrained financing,
(ii) Deflation in asset prices, and
(iii) Shift in demand growth.
Constrained financing
First, ship financing in all of its forms is very restricted and will remain so in the years to come. There has been just one shipping IPO this year raising a mere $7m! Following the 2008 financial crisis, the excessively detailed banking legislation enacted, has forced bankers to spend more time filling out forms for regulators rather than understanding better their clients and the industry.
Despite monetary expansion, banks are not lending the excess supply of money but rather hoarding it. If you think this scarcity of financing is temporary and that the implications of Basel III have already been felt, you are simply wrong. In 2018 we also anticipate the IFRS 9 to take effect contributing to earlier recognition of credit losses, making it more expensive and difficult for banks to lend. So, via upcoming regulations, deleveraging will intensify both in the west and in emerging markets. Only the best buyers will receive money, good luck to smaller companies!
Deflation in asset prices
Second, the cost of creating new shipping assets, i.e., shipbuilding prices, are low, will get lower and will remain low for some time. Shipping deflation is due to vast manufacturing overcapacity from the previous cycle and technological change. We will experience newbuilding prices lower than the 2012 ones which at the time represented multi-year lows.
The Japanese shipbuilding prices, the premium in the sector, are correcting thanks also to the Yen now standing at 111 a dollar vs. 76 in 2012, while Chinese Builders, the floor of shipbuilding values, offer aggressive pricing assisted by the Yuan devaluations.
In S. Korea, we expect consolidation and further correction of prices following the recent elections. The abovementioned lack of financing will keep newbuilding appetite subdued for long. This will further drive prices down. And since newbuilding prices are in a sense an upper bound for second-hand prices in normal freight conditions, asset prices will stay deflated endangering the plans of opportunistic asset players.
Shift in demand growth
Third, there is a shift in growth as we transition from an industrial into a services and consumer economy. GDP growth per se, especially if anemic as it stands today, will not suffice to generate strong seaborne demand. However, with limited financing we can’t anticipate anything exciting on the physical side. The historical correlations and >1 multipliers between GDP and seaborne trade documented over several decades have been broken the last years and specifically last year seaborne trade growth was outnumbered by GDP growth. There are fears that outsourcing and globalization are reaching their limits and there are early signs of near sourcing and nationalization. Fighting pollution will remain a long-term driver, with its implications on coal, oil and regulations. Gas is coming catalyzed by shale developments!
We have indeed a new shipping abnormal -with constrained financing, assets deflation and shift in demand- and it is likely to stay with us for long. On the rosy side, the first two trends, will alleviate the two major causes of the ongoing crisis: exogenous money and excessive yard capacity.
By Panos Tsilingiris
SnP Broker
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms. Eva Tzima
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
The Information contained within the website of COALspot.com is intended for informational purposes only and is not intended as professional counsel and should not be used as such.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 20 May 16
U.S COAL PRODUCTION FOR THE WEEK ENDED 14 MAY TOTALED 11.4 MMST; UP 3.8% W/W
COALspot.com – U.S the world’s second largest coal producer has produced approximately totaled an estimated 11.4 million short tons (mm ...
Thursday, 19 May 16
AUSTRALIAN IRON ORE CARGOES PUSHED UP THE FREIGHT RATES FOR CAPE THIS WEEK - FEARNLEYS
Cape
It has been a big jump in the freight rates for Cape size this week, says Fearnleys in its latest weekly report. All of the Australian iron ...
Thursday, 19 May 16
DISPUTE OVER VAT ON COAL DRAGS ON, CAUSING DOUBLE-BLOW TO MINERS - JP
The dispute over the value-added tax ( VAT ) mechanism between coal miners operating under third-generation contracts and the Finance Ministry&rsqu ...
Wednesday, 18 May 16
DRY BULK OUTLOOK REMAINS GLOOMY SAYS DANISH SHIP FINANCE, AS SHIPPING NEEDS TO RETHINK BUSINESS MODEL - HELLENIC SHIPPING
Our Shipping Market Review – May 2016 is devoted to the fourth industrial revolution. To understand the truly disruptive nature of the fourth ...
Wednesday, 18 May 16
LONG TERM FUNDAMENTALS ARE SLOWLY IMPROVING FOR THE DRY BULK MARKET - INTERMODAL
As we are approaching the end of the first half of the year, there is a number of market participants over at the dry bulk sector that have started ...
|
|
|
Showing 2426 to 2430 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Planning Commission, India
- Salva Resources Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Parliament of New Zealand
- PTC India Limited - India
- Heidelberg Cement - Germany
- Gujarat Electricity Regulatory Commission - India
- Tata Chemicals Ltd - India
- Orica Australia Pty. Ltd.
- SMC Global Power, Philippines
- Bukit Makmur.PT - Indonesia
- Medco Energi Mining Internasional
- Central Electricity Authority - India
- Mjunction Services Limited - India
- Marubeni Corporation - India
- Bangladesh Power Developement Board
- Bayan Resources Tbk. - Indonesia
- Altura Mining Limited, Indonesia
- Jindal Steel & Power Ltd - India
- Kepco SPC Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Bulk Trading Sa - Switzerland
- Aditya Birla Group - India
- Antam Resourcindo - Indonesia
- Global Green Power PLC Corporation, Philippines
- GVK Power & Infra Limited - India
- Pendopo Energi Batubara - Indonesia
- Baramulti Group, Indonesia
- Meralco Power Generation, Philippines
- Kumho Petrochemical, South Korea
- Borneo Indobara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Sojitz Corporation - Japan
- TeaM Sual Corporation - Philippines
- Chamber of Mines of South Africa
- Rio Tinto Coal - Australia
- Toyota Tsusho Corporation, Japan
- SN Aboitiz Power Inc, Philippines
- Port Waratah Coal Services - Australia
- Eastern Coal Council - USA
- CIMB Investment Bank - Malaysia
- The State Trading Corporation of India Ltd
- Australian Commodity Traders Exchange
- Gujarat Sidhee Cement - India
- Vizag Seaport Private Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Merrill Lynch Commodities Europe
- PowerSource Philippines DevCo
- South Luzon Thermal Energy Corporation
- Kohat Cement Company Ltd. - Pakistan
- Jorong Barutama Greston.PT - Indonesia
- Meenaskhi Energy Private Limited - India
- Edison Trading Spa - Italy
- Siam City Cement PLC, Thailand
- Kalimantan Lumbung Energi - Indonesia
- Deloitte Consulting - India
- Central Java Power - Indonesia
- Sical Logistics Limited - India
- Alfred C Toepfer International GmbH - Germany
- White Energy Company Limited
- Sindya Power Generating Company Private Ltd
- Kobexindo Tractors - Indoneisa
- Dalmia Cement Bharat India
- Globalindo Alam Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Madhucon Powers Ltd - India
- India Bulls Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Formosa Plastics Group - Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Energy Development Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Interocean Group of Companies - India
- Romanian Commodities Exchange
- Economic Council, Georgia
- Larsen & Toubro Limited - India
- GAC Shipping (India) Pvt Ltd
- IEA Clean Coal Centre - UK
- Coalindo Energy - Indonesia
- Indogreen Group - Indonesia
- Ambuja Cements Ltd - India
- Kartika Selabumi Mining - Indonesia
- Savvy Resources Ltd - HongKong
- MS Steel International - UAE
- Electricity Authority, New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Makarim & Taira - Indonesia
- Lanco Infratech Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Agrawal Coal Company - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Straits Asia Resources Limited - Singapore
- Krishnapatnam Port Company Ltd. - India
- SMG Consultants - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Oldendorff Carriers - Singapore
- Indonesian Coal Mining Association
- Bharathi Cement Corporation - India
- Videocon Industries ltd - India
- Coal and Oil Company - UAE
- Standard Chartered Bank - UAE
- Thiess Contractors Indonesia
- Mercuria Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Vedanta Resources Plc - India
- Grasim Industreis Ltd - India
- Attock Cement Pakistan Limited
- Posco Energy - South Korea
- Power Finance Corporation Ltd., India
- Karbindo Abesyapradhi - Indoneisa
- Energy Link Ltd, New Zealand
- Global Business Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- International Coal Ventures Pvt Ltd - India
- Ministry of Mines - Canada
- Ministry of Transport, Egypt
- Africa Commodities Group - South Africa
- Samtan Co., Ltd - South Korea
- Barasentosa Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- Banpu Public Company Limited - Thailand
- Carbofer General Trading SA - India
- Intertek Mineral Services - Indonesia
- New Zealand Coal & Carbon
- Miang Besar Coal Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Semirara Mining Corp, Philippines
- Georgia Ports Authority, United States
- Sinarmas Energy and Mining - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Therma Luzon, Inc, Philippines
- Simpson Spence & Young - Indonesia
- ICICI Bank Limited - India
- Xindia Steels Limited - India
- Maharashtra Electricity Regulatory Commission - India
- CNBM International Corporation - China
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Oil Corporation Limited
- Sarangani Energy Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Riau Bara Harum - Indonesia
- Australian Coal Association
- Pipit Mutiara Jaya. PT, Indonesia
- Uttam Galva Steels Limited - India
- Maheswari Brothers Coal Limited - India
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- Coastal Gujarat Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Renaissance Capital - South Africa
- VISA Power Limited - India
- Independent Power Producers Association of India
- Essar Steel Hazira Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- Mercator Lines Limited - India
- Tamil Nadu electricity Board
- Anglo American - United Kingdom
- McConnell Dowell - Australia
- Eastern Energy - Thailand
- Chettinad Cement Corporation Ltd - India
- Sakthi Sugars Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Semirara Mining and Power Corporation, Philippines
- Minerals Council of Australia
- Asmin Koalindo Tuhup - Indonesia
- Goldman Sachs - Singapore
- AsiaOL BioFuels Corp., Philippines
- Metalloyd Limited - United Kingdom
- Directorate Of Revenue Intelligence - India
- Indika Energy - Indonesia
- Wood Mackenzie - Singapore
- The Treasury - Australian Government
- Binh Thuan Hamico - Vietnam
- Kapuas Tunggal Persada - Indonesia
- Ministry of Finance - Indonesia
- Timah Investasi Mineral - Indoneisa
- ASAPP Information Group - India
- Malabar Cements Ltd - India
- GMR Energy Limited - India
- Siam City Cement - Thailand
- Mintek Dendrill Indonesia
- OPG Power Generation Pvt Ltd - India
- Parry Sugars Refinery, India
- Cigading International Bulk Terminal - Indonesia
- Bhushan Steel Limited - India
- Singapore Mercantile Exchange
- San Jose City I Power Corp, Philippines
- London Commodity Brokers - England
- Cement Manufacturers Association - India
- Electricity Generating Authority of Thailand
- European Bulk Services B.V. - Netherlands
- Kaltim Prima Coal - Indonesia
- Manunggal Multi Energi - Indonesia
- Wilmar Investment Holdings
- Ind-Barath Power Infra Limited - India
- Latin American Coal - Colombia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Orica Mining Services - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Petron Corporation, Philippines
- Thai Mozambique Logistica
- Trasteel International SA, Italy
- The University of Queensland
- Kideco Jaya Agung - Indonesia
- Star Paper Mills Limited - India
- Global Coal Blending Company Limited - Australia
- Rashtriya Ispat Nigam Limited - India
- Commonwealth Bank - Australia
- Bhatia International Limited - India
- Holcim Trading Pte Ltd - Singapore
|
| |
| |
|
