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Tuesday, 14 March 17
ORDERBOOK-TO-FEET RATIO DECREASING; THE FREIGHT MARKET IMPROVING
 It seems as though the renewed optimism that has arisen from the recent upward trends being noted in the freight market, the dry bulk market has been set alight, said Allied Shipping in its latest weekly report.
According to George Lazaridis Head of Market Research & Asset Valuations of Allied, there has been a growing bullish vibe being felt for several months now in this sector, generated by the successive decreases being seen in the orderbook-to-fleet ratio during the course of the past year and all indicators in the freight market pointing to an improved balance. He further noted that the order book to fleet ratio for the dry bulk segment as a whole has now dropped to 7.72%, the lowest figure we have seen in over two decades now. This plays an important role in dissipating concerns over the glut in tonnage supply that we have seen in the market, though this is only half the picture. During the course of 2016, many viewed the excessively low earnings being a directly caused by the excessive number of new buildings being delivered. Having witnessed both the drop in the order book and at the same time a considerable improvement in freight rates, one can easily make the presumption that the supply-demand balance in the market is improving and at a fairly good pace. During the course of 2017, freight rates have held at levels well above what we were seeing back in 2016 and even 2015, while the recent rally that boosted the Baltic Dry Index to above 1,000 points before the start of the grain season in the Atlantic, has only re-enforced the bullish views that have been held by many in this regard.
George Lazaridis further said, it is no surprise therefore that we have seen buyers quickly flocking back into the secondhand market with fears that they will “lose” the opportunities that are still present in the market. Despite the fact that prices have on average risen by around 50% since the low levels of March 2016, asset prices can still be considered to be fairly competitive compared to what we have seen historically since the late 90’s. As such and with earnings now providing the promise of better returns and positive cash flows for new purchases, you can see that there is excess possibility for further price gains to be noted over the coming months. What’s more is that during the time period where we faced some of the biggest difficulties in the freight market, newbuilding prices continued to hold at abnormally high levels compared to equivalent periods in the past. As such secondhand asset prices are at an even higher the normal discount against what it costs to construct a similar vessel. This leaves the conclusion that if earnings continue to stay at “good” levels it will be hard to see similarly low price levels in the future for similarly aged vessels.
All these conclusions are based on the assumption that we have reached a balance in the market and that demand will continue to grow at least at its current momentum, allowing for a continual improvement in the freight market, said George Lazaridis.
This is a fairly big if however, especially if you take a closer look at the volatility being noted in the commodity markets and the general uncertainty being played out in many of those economies that play a vital role in seaborne trade. Further shocks could derail this balance and bring another round of “pains”. Although this does need to be of concern, it seems that even if these negative scenarios play out their consequences to the market would be more minor and short-term then what similar events have caused in the recent past. As such one can’t blame those optimists out there and given the relatively lower risks that are in view, there are fair grounds to claim that opportunities are now much better than most that we have come by in the past 5 years.
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Friday, 13 January 17
U.S. COAL PRICES TO INCREASE IN 2017 AND IN 2018 - EIA
Coal Supply
EIA estimates that U.S. coal production declined by 158 million short tons (MMst) (18%) in 2016, to 739 MMst, which would be the lowe ...
Friday, 13 January 17
U.S. COAL IMPORTS IN THIRD QUARTER 2016 TOTALED 2.7 MMST, SAYS EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 13.8 million short ton ...
Thursday, 12 January 17
ASIA: COAL'S FUTURE - BENJAMIN SPORTON
As economies develop and the United Nations’ Sustainable Development Goals (SDGs) are realised, demand for energy will increase as more peopl ...
Wednesday, 11 January 17
MARKET INSIGHT - GEORGE DERMATIS
A new year has dawned upon us and it sure promises to be an exciting one which makes it practically impossible to resist the challenge of making a ...
Tuesday, 10 January 17
SHIPPING MARKET 2017
After having entered into a New Year, fresh hopes seem to be high for this to be the turning point in the market that many have been looking forwar ...
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- IHS Mccloskey Coal Group - USA
- Meenaskhi Energy Private Limited - India
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Commonwealth Bank - Australia
- Kapuas Tunggal Persada - Indonesia
- Bhoruka Overseas - Indonesia
- Kobexindo Tractors - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- Sical Logistics Limited - India
- Anglo American - United Kingdom
- Essar Steel Hazira Ltd - India
- Jaiprakash Power Ventures ltd
- Salva Resources Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- IEA Clean Coal Centre - UK
- Africa Commodities Group - South Africa
- GAC Shipping (India) Pvt Ltd
- Indika Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Interocean Group of Companies - India
- Ministry of Finance - Indonesia
- Orica Mining Services - Indonesia
- MS Steel International - UAE
- Mercuria Energy - Indonesia
- Madhucon Powers Ltd - India
- Electricity Generating Authority of Thailand
- Standard Chartered Bank - UAE
- CIMB Investment Bank - Malaysia
- PowerSource Philippines DevCo
- Sree Jayajothi Cements Limited - India
- Economic Council, Georgia
- Petrochimia International Co. Ltd.- Taiwan
- Cement Manufacturers Association - India
- Petron Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Gujarat Sidhee Cement - India
- Carbofer General Trading SA - India
- Ambuja Cements Ltd - India
- South Luzon Thermal Energy Corporation
- Banpu Public Company Limited - Thailand
- Eastern Coal Council - USA
- Coal and Oil Company - UAE
- Mintek Dendrill Indonesia
- Bhatia International Limited - India
- Ceylon Electricity Board - Sri Lanka
- Straits Asia Resources Limited - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Goldman Sachs - Singapore
- Bangladesh Power Developement Board
- Barasentosa Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Vizag Seaport Private Limited - India
- CNBM International Corporation - China
- Global Green Power PLC Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Parliament of New Zealand
- Power Finance Corporation Ltd., India
- Indo Tambangraya Megah - Indonesia
- The University of Queensland
- Thai Mozambique Logistica
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- Metalloyd Limited - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Australian Commodity Traders Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Price Waterhouse Coopers - Russia
- White Energy Company Limited
- Kideco Jaya Agung - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Malabar Cements Ltd - India
- Tamil Nadu electricity Board
- Videocon Industries ltd - India
- Wilmar Investment Holdings
- Central Java Power - Indonesia
- Bulk Trading Sa - Switzerland
- Marubeni Corporation - India
- Sindya Power Generating Company Private Ltd
- Planning Commission, India
- Energy Link Ltd, New Zealand
- International Coal Ventures Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Renaissance Capital - South Africa
- Manunggal Multi Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- Baramulti Group, Indonesia
- Central Electricity Authority - India
- Oldendorff Carriers - Singapore
- Bhushan Steel Limited - India
- Vedanta Resources Plc - India
- Altura Mining Limited, Indonesia
- VISA Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- GMR Energy Limited - India
- Therma Luzon, Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Toyota Tsusho Corporation, Japan
- GN Power Mariveles Coal Plant, Philippines
- Parry Sugars Refinery, India
- Sakthi Sugars Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- GVK Power & Infra Limited - India
- SMG Consultants - Indonesia
- Karaikal Port Pvt Ltd - India
- Merrill Lynch Commodities Europe
- New Zealand Coal & Carbon
- PTC India Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Electricity Authority, New Zealand
- Semirara Mining and Power Corporation, Philippines
- Tata Chemicals Ltd - India
- SMC Global Power, Philippines
- Larsen & Toubro Limited - India
- Bukit Baiduri Energy - Indonesia
- Lanco Infratech Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Riau Bara Harum - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Edison Trading Spa - Italy
- Pendopo Energi Batubara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- San Jose City I Power Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Makarim & Taira - Indonesia
- Indian Oil Corporation Limited
- Eastern Energy - Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Australian Coal Association
- Maharashtra Electricity Regulatory Commission - India
- Chettinad Cement Corporation Ltd - India
- Borneo Indobara - Indonesia
- London Commodity Brokers - England
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- Agrawal Coal Company - India
- PetroVietnam Power Coal Import and Supply Company
- Karbindo Abesyapradhi - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Minerals Council of Australia
- Bharathi Cement Corporation - India
- Indogreen Group - Indonesia
- Bayan Resources Tbk. - Indonesia
- Latin American Coal - Colombia
- Singapore Mercantile Exchange
- Star Paper Mills Limited - India
- Global Coal Blending Company Limited - Australia
- TeaM Sual Corporation - Philippines
- Port Waratah Coal Services - Australia
- Samtan Co., Ltd - South Korea
- Ministry of Mines - Canada
- Romanian Commodities Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jindal Steel & Power Ltd - India
- Ministry of Transport, Egypt
- Siam City Cement - Thailand
- European Bulk Services B.V. - Netherlands
- Alfred C Toepfer International GmbH - Germany
- PNOC Exploration Corporation - Philippines
- McConnell Dowell - Australia
- Directorate Of Revenue Intelligence - India
- Coalindo Energy - Indonesia
- Siam City Cement PLC, Thailand
- Deloitte Consulting - India
- Kumho Petrochemical, South Korea
- Binh Thuan Hamico - Vietnam
- Kartika Selabumi Mining - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Attock Cement Pakistan Limited
- Rio Tinto Coal - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Formosa Plastics Group - Taiwan
- Iligan Light & Power Inc, Philippines
- Medco Energi Mining Internasional
- Trasteel International SA, Italy
- Independent Power Producers Association of India
- SN Aboitiz Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Georgia Ports Authority, United States
- Sinarmas Energy and Mining - Indonesia
- Bukit Makmur.PT - Indonesia
- Wood Mackenzie - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Billiton Holdings Pty Ltd - Australia
- Semirara Mining Corp, Philippines
- Chamber of Mines of South Africa
- Indonesian Coal Mining Association
- Aboitiz Power Corporation - Philippines
- Dalmia Cement Bharat India
- Aditya Birla Group - India
- India Bulls Power Limited - India
- Indian Energy Exchange, India
- Holcim Trading Pte Ltd - Singapore
- Antam Resourcindo - Indonesia
- Energy Development Corp, Philippines
- ASAPP Information Group - India
- Asmin Koalindo Tuhup - Indonesia
- Simpson Spence & Young - Indonesia
- Thiess Contractors Indonesia
- Coastal Gujarat Power Limited - India
- Sojitz Corporation - Japan
- Posco Energy - South Korea
- Meralco Power Generation, Philippines
- Sarangani Energy Corporation, Philippines
- Mjunction Services Limited - India
- Ind-Barath Power Infra Limited - India
- Xindia Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- The Treasury - Australian Government
- Uttam Galva Steels Limited - India
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