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Wednesday, 30 May 18
SHIPPING MARKET INSIGHT - ILIAS M. LALAOUNIS
 Among several hot topics that will be discussed during the Posidonia week, the International Maritime Organization regulation that will be enforced on Jan 2020 and calls for ships to reduce the maximum sulphur content of their fuels to 0.5 percent, will definitely be on the spotlight. The fuel discussion becomes even more interesting following the recent oil rally that drove global benchmark Brent to the highest level late 2014, near 80usd last week before settling back to around 75usd. According to Morgan Stanley’s latest report, besides key fundamentals and political externalities, oil prices will be severely impacted as new international shipping regulations takes effect, overhauling the types of fuels produced by refiners, and will push Brent crude reaching $90 a barrel by 2020. An increase in demand of low sulphur fuels will hike demand of middle distillate products (diesel and marine gasoil), that will result a significant need for more crude; this will drive crack spreads higher and will boost oil prices. Consequently, several hybrid fuels (Ultra low sulphur Fuel oils) will be marketed by refineries and traders; however they have several red flags (compatibility issues among others). Hence, it seems very unlikely that refiners, traders and bunker suppliers will manage to market a "one spec fits all" low sulphur fuel oil product. This will create an oversupply of high sulphur fuel oil that is expected to put pressure on refineries to produce more distillate fuels.
Data from the report suggests that middle distillate markets are already pretty tight in matters of supply; i.e. diesel and gasoil stockpiles in key storage hubs in Europe, the U.S. and Asia are currently below their 5-yr seasonal averages. At the same time, demand for these distillates is growing annually by 600k barrels/day since 2011, accelerating to 800,000 barrels/day in recent quarters. According to recent studies, the IMO regulation is expected to boost demand by an additional 1.5 million barrels/day by 2020, which should boost crude prices. While global crude production will most likely rise, it probably won’t increase by the 5.7 million barrels/day needed by 2020 to meet the additional demand for fuels. Since current fundamentals as well as the IMO regulation impact point to higher bunker prices, speed & consumptions of ships are once again on the spotlight. Consequently, the instalment (or not) of scrubbers is already a big debate among owners and charterers. If the above analysis is proven correct, and a sudden increase in demand of middle distillates is combined with tight distillate product supply as well as high crude oil prices and an oversupply of high sulphur fuel oil, then the price differential between low sulphur marine gasoil and high sulphur fuel oil will be definitely significant. The question is how long will a large price gap exist for and if it will suffice for the payback of the initial investment cost to install a scrubber. In other words, will this price differential incentivize refiners to invest in high cost cocker installations and upgrade their current infrastructure and how long will this process take.
Amid the high cost of bunkers post 2020, charterers will most likely request owners to slow steam; whereas ships with scrubbers will enjoy the flexibility and maximize ton-mile revenue. Similarly, if the majority of the fleet is slow steaming, and in combination with a possible increase of scrapping tonnage that can’t adapt on the new environmental regulations, we see less vessels competing over cargos; that will probably drive the market upwards. All in all, although the advantages of installing scrubbers especially on thirsty ships are clear, we see only a few owners and newbuilding orders that include scrubbers on board, with the vast majority of orders being “scrubber ready”. Our feeling is that due to current market condition, most owners adopt a “wait and see approach” and currently hold their horses.
By Ilias M. Lalaounis
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.
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Wednesday, 30 May 18
HIGH PRICE, DMO ENCOURAGE COAL MINERS TO BOOST PRODUCTION - THE JAKARTA POST
A number of coal miners are planning to increase production by 10 percent in the second half of this year after a worldwide price increase.
Th ...
Tuesday, 29 May 18
BLOCKCHAIN CAN HAVE A TRANSFORMATIVE EFFECT ON THE SHIPPING INDUSTRY
KNOWLEDGE TO ELEVATE
Following the launch of a legal briefing on blockchain contracts from UK P&I Club, Claims Executive, Filip Koscieleck ...
Tuesday, 29 May 18
INDIA'S COAL IMPORT DECLINES IN APRIL AMID DIVERSION TO THERMAL POWER PLANTS - PTI
India’s coal import fell by 9 percent to 17.32 million tonnes (MT) in April on the back of ample supply of dry fuel from domestic sources.
...
Monday, 28 May 18
COAL SUPPLY DIVERSION IRKS INDUSTRIES DEPENDENT ON CAPTIVE POWER PLANTS - HINDU BUSINESS LINE
The government’s move to prioritise coal supplies to power plants with minimal coal stock has disrupted fuel supply to some sectors, which ha ...
Monday, 28 May 18
KOMIPO ISSUED ANOTHER TENDER FOR 130K MT OF 5700 NAR COAL
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued a tender for 130,000 mt of min. 5700 NAR coal of Australian origi ...
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Showing 1711 to 1715 news of total 6871 |
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- Gujarat Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Metalloyd Limited - United Kingdom
- Mjunction Services Limited - India
- Bangladesh Power Developement Board
- Kalimantan Lumbung Energi - Indonesia
- SMG Consultants - Indonesia
- Meenaskhi Energy Private Limited - India
- Videocon Industries ltd - India
- Energy Development Corp, Philippines
- Power Finance Corporation Ltd., India
- CNBM International Corporation - China
- Indika Energy - Indonesia
- GMR Energy Limited - India
- The Treasury - Australian Government
- Sical Logistics Limited - India
- Formosa Plastics Group - Taiwan
- Merrill Lynch Commodities Europe
- Orica Mining Services - Indonesia
- Madhucon Powers Ltd - India
- Cement Manufacturers Association - India
- Carbofer General Trading SA - India
- OPG Power Generation Pvt Ltd - India
- VISA Power Limited - India
- India Bulls Power Limited - India
- Australian Commodity Traders Exchange
- Savvy Resources Ltd - HongKong
- Bhushan Steel Limited - India
- Indian Energy Exchange, India
- Africa Commodities Group - South Africa
- Straits Asia Resources Limited - Singapore
- Parry Sugars Refinery, India
- Antam Resourcindo - Indonesia
- Global Business Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Salva Resources Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Star Paper Mills Limited - India
- PTC India Limited - India
- ASAPP Information Group - India
- Bhatia International Limited - India
- CIMB Investment Bank - Malaysia
- Romanian Commodities Exchange
- Altura Mining Limited, Indonesia
- Energy Link Ltd, New Zealand
- London Commodity Brokers - England
- Toyota Tsusho Corporation, Japan
- Gujarat Mineral Development Corp Ltd - India
- Heidelberg Cement - Germany
- Coastal Gujarat Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Wilmar Investment Holdings
- Orica Australia Pty. Ltd.
- Uttam Galva Steels Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- White Energy Company Limited
- Sinarmas Energy and Mining - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Semirara Mining and Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- MS Steel International - UAE
- Cigading International Bulk Terminal - Indonesia
- Georgia Ports Authority, United States
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Indo Tambangraya Megah - Indonesia
- GAC Shipping (India) Pvt Ltd
- Bhoruka Overseas - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Singapore Mercantile Exchange
- Thiess Contractors Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Rio Tinto Coal - Australia
- Vedanta Resources Plc - India
- Commonwealth Bank - Australia
- Binh Thuan Hamico - Vietnam
- Attock Cement Pakistan Limited
- Ceylon Electricity Board - Sri Lanka
- Bulk Trading Sa - Switzerland
- Vizag Seaport Private Limited - India
- Billiton Holdings Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Manunggal Multi Energi - Indonesia
- Kumho Petrochemical, South Korea
- Kohat Cement Company Ltd. - Pakistan
- Makarim & Taira - Indonesia
- Simpson Spence & Young - Indonesia
- Agrawal Coal Company - India
- Karaikal Port Pvt Ltd - India
- Borneo Indobara - Indonesia
- Parliament of New Zealand
- Tamil Nadu electricity Board
- Alfred C Toepfer International GmbH - Germany
- New Zealand Coal & Carbon
- Anglo American - United Kingdom
- Eastern Coal Council - USA
- Miang Besar Coal Terminal - Indonesia
- Baramulti Group, Indonesia
- Posco Energy - South Korea
- Thai Mozambique Logistica
- Economic Council, Georgia
- IEA Clean Coal Centre - UK
- International Coal Ventures Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Independent Power Producers Association of India
- Ind-Barath Power Infra Limited - India
- Edison Trading Spa - Italy
- Global Green Power PLC Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Interocean Group of Companies - India
- PetroVietnam Power Coal Import and Supply Company
- Bharathi Cement Corporation - India
- McConnell Dowell - Australia
- Indonesian Coal Mining Association
- Meralco Power Generation, Philippines
- Renaissance Capital - South Africa
- Kaltim Prima Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- Latin American Coal - Colombia
- Therma Luzon, Inc, Philippines
- Eastern Energy - Thailand
- Krishnapatnam Port Company Ltd. - India
- South Luzon Thermal Energy Corporation
- Kartika Selabumi Mining - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Riau Bara Harum - Indonesia
- Indian Oil Corporation Limited
- Barasentosa Lestari - Indonesia
- Bukit Baiduri Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Ministry of Mines - Canada
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Directorate General of MIneral and Coal - Indonesia
- Kobexindo Tractors - Indoneisa
- Mintek Dendrill Indonesia
- Australian Coal Association
- Neyveli Lignite Corporation Ltd, - India
- PowerSource Philippines DevCo
- Chamber of Mines of South Africa
- GN Power Mariveles Coal Plant, Philippines
- Port Waratah Coal Services - Australia
- Aboitiz Power Corporation - Philippines
- Tata Chemicals Ltd - India
- Lanco Infratech Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- GVK Power & Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Electricity Generating Authority of Thailand
- Siam City Cement PLC, Thailand
- Coalindo Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Planning Commission, India
- Aditya Birla Group - India
- Maheswari Brothers Coal Limited - India
- Bukit Makmur.PT - Indonesia
- Minerals Council of Australia
- Oldendorff Carriers - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- ICICI Bank Limited - India
- Kideco Jaya Agung - Indonesia
- Banpu Public Company Limited - Thailand
- Grasim Industreis Ltd - India
- Chettinad Cement Corporation Ltd - India
- Electricity Authority, New Zealand
- Sojitz Corporation - Japan
- European Bulk Services B.V. - Netherlands
- Karbindo Abesyapradhi - Indoneisa
- Dalmia Cement Bharat India
- Xindia Steels Limited - India
- Petron Corporation, Philippines
- Marubeni Corporation - India
- Bayan Resources Tbk. - Indonesia
- The University of Queensland
- The State Trading Corporation of India Ltd
- Indogreen Group - Indonesia
- Directorate Of Revenue Intelligence - India
- Holcim Trading Pte Ltd - Singapore
- Coal and Oil Company - UAE
- Price Waterhouse Coopers - Russia
- Kapuas Tunggal Persada - Indonesia
- Jindal Steel & Power Ltd - India
- Central Java Power - Indonesia
- Ambuja Cements Ltd - India
- LBH Netherlands Bv - Netherlands
- Intertek Mineral Services - Indonesia
- Semirara Mining Corp, Philippines
- Wood Mackenzie - Singapore
- Goldman Sachs - Singapore
- Sakthi Sugars Limited - India
- Medco Energi Mining Internasional
- Essar Steel Hazira Ltd - India
- Central Electricity Authority - India
- Standard Chartered Bank - UAE
- Bukit Asam (Persero) Tbk - Indonesia
- Mercator Lines Limited - India
- Gujarat Sidhee Cement - India
- TeaM Sual Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Finance - Indonesia
- Malabar Cements Ltd - India
- Ministry of Transport, Egypt
- Trasteel International SA, Italy
- Sindya Power Generating Company Private Ltd
- SMC Global Power, Philippines
- Siam City Cement - Thailand
- Mercuria Energy - Indonesia
- Deloitte Consulting - India
- Larsen & Toubro Limited - India
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