Ships Carrying US Sorghum U-turn after China Tariffs
Several ships carrying cargoes of sorghum from the United States to China have changed course since Beijing slapped hefty anti-dumping deposits on U.S. imports of the grain, trade sources and a Reuters analysis of export and shipping data showed.Sorghum is a niche animal feed and a tiny slice of the billions of dollars in exports at stake in the trade dispute between the world's two largest economies, which threatens to disrupt the flow of everything from steel to electronics.The supply-chain pain felt by sorghum suppliers on the Pacific…
Doosan Drops out of Daewoo Bid
Doosan Group pulled out of the bidding for Daewoo Shipbuilding, while steel firm POSCO said it was seeking partners to make a bid. POSCO, the world's No.4 steelmaker and a strong candidate for the Daewoo deal, wants to partner with a financial firm and 's National Pension Service (NPS) to bid for Daewoo Shipbuilding, reports said. The developments reflect expectations that a hefty premium for Daewoo Shipbuilding could double the value of a deal to $7.8-$9.6m and that tight credit market conditions are squeezing potential buyers. Source: Reuters
Navios Buoyed by JPMorgan Duble Upgrade
China Appeals WTO Ruling on US Solar Panel Dispute
China has appealed against a WTO dispute panel report on anti-dumping duties applied on certain Chinese products by the United States, the World Trade Organization (WTO) said on Friday. The appeal covers products including solar panels, wind towers, thermal and coated paper, certain lawn trimmers, kitchen shelving, steel sinks and cylinders, line pipes and extrusions. WTO judges in the case ruled last month that the United States broke its rules in imposing hefty duties on Chinese steel products, solar panels and a range of other goods that Washington argues enjoyed government subsidies. It was not clear why China had appealed as the panel found that Washington had overstepped the mark in justifying the so-called countervailing duties in the $7.2 billion case.
U.S. Oil Rises High
U.S. oil prices rose on Thursday, prompted by a hefty inventory draw last week, as traders shrugged off Iraq's announcement that it would soon restart exports. Crude for August delivery gained 81 cents to last trade at $27.05 a barrel on the New York Mercantile Exchange (NYMEX). The U.S. Energy Information Administration (EIA) said crude stocks fell by 4.8 million barrels last week, higher than the industry group American Petroleum Institute (API) estimate of a four million barrel draw. Crude stocks now stand at about 310 million barrels, cutting down year-on-year surplus to under 20 million barrels. Refineries drained inventories as they stepped up production of refined products by 2.4-2.6 percent to around 97 percent of capacity.
Frank Armitt & Son Announces Online Stock Reporting System
Runcorn based shipping agent Frank Armitt & Son announced the launch of their new website which provides the North West Steel Trade with an innovative steel freight management system. The new online reporting system offers suppliers and companies in the steel industry the ability to manage their imported materials online using Armitt’s Steel Management Portal which is accessible through their new website. Customers can log in to the portal at their convenience to monitor the warehousing and delivery status of their imports.
Bidders Circle $4b Daewoo Ship Deal
Despite a sliding stock market, bidders for 's Daewoo Shipbuilding may have to pay a hefty premium and large fees to snap up the coveted $4 billion asset amid upbeat prospects for the sector. Slow progress in the bidding process due to union protests and delays in selecting a lead manager, which coincided with a retreat in global stocks and a decision to exclude foreign bidders, has benefited potential buyers by reducing competition and the value of the deal by $2 billion from a year ago. But a global credit squeeze and recent warnings from Korean regulators against debt-financed buyouts mean a successful buyer will have to give up some of their assets or pay hefty fees to win the world's third-largest shipbuilder.
China Places Duties on Steel
It appears the battle over steel continues. In the wake of the U.S. lifting its own 20-month tarriff on steel imports late last year, China, the world's top steel importer, has reportedly placed a hefty import duties on high-grade metal used by the shipbuilding sectors, according to a Reuters report. The U.S. lifted its tarriff in the face of a potential trade war over the matter. China reportedly implemented the new tariffs after it concluded that there was dumping of cold-rolled steel by Russia, South Korea, Ukraine, Kazakhstan and Taiwan. South Korea's POSCO, the world's fourth-largest steel maker, will be exempted as Chinese authorities concluded it was not selling its cold-rolled products below market prices, Reuters reported.
Huntington Ingalls Says Steel Tariffs Won't Raise Prices for Now
Huntington Ingalls Industries, the largest shipbuilder for the U.S. government, said new tariffs on steel and aluminum should not impact the price of its own shipbuilding in the near-term, but does not know if tariffs will raise prices for its suppliers. Huntington's Newport News Shipbuilding yard in Virginia has a multi-year financial agreement that guarantees steady pricing for its steel, known as a hedge, Jennifer Boykin, president of Newport News Shipbuilding in Newport News, Virginia, told reporters on Tuesday at the Sea Air Space Exposition in National Harbor, Maryland.
Peel Ports Pulls Out all the Stops
Operations team docks crucial bulk steel vessel at Port of Liverpool container terminal in order to overcome weather delays and provide an innovative customer-centric solution, which brings added value to customer supply chain. Peel Ports are never one to complain about gloomy weather, staying true to their values of being more than just a port; the owner and operator of the Port of Liverpool demonstrated innovative thinking and flexibility to solve challenges by taking on the elements.
New GE LM2500 Module for US Navy Frigates
GE’s Marine Solutions announced it has completed the acoustic attenuation and weight comparison testing between its new lightweight composite LM2500 gas turbine module and the steel enclosure. The results verified a 2,500-kilogram weight reduction and a significant improvement in noise attenuation—60 percent quieter—when compared to its steel predecessor. “The tests compared the noise and weight of the steel enclosure to the novel one piece composite design. Results verified that the new carbon fiber provides a significant reduction in the wall weight and noise…
Scanty Ordering Bodes Well for Tanker Shipping - Drewry
Newbuilding orders of tanker ships have seen a sharp reduction, but the slowing trend needs to be sustained for the longer-term health of the market, according to the latest edition of the Tanker Forecaster, published by global shipping consultancy Drewry. After numerous orders in recent years, newbuilding activity in the tanker market declined sharply in the first quarter of 2016 as only 34 vessels (2.6 million dwt) were ordered during the period, far below the hefty 368 vessels (45 million dwt) ordered in 2015.
Canada: Halifax Shipyard On Hand To Replace Lost Rudder
In November 2003 the Gorthon Lines AB vessel Margit Gorthon lost her rudder in the St. Lawrence River. The RoRo vessel features starboard side ramps and measures 463.9 x 73.1 ft. (141.4 x 22.3 m) and is 14,240 dwt. Halifax Shipyard visited the vessel and found that not only the rudder was gone, but the 343 mm rudder stock broken in three pieces and the steering gear flat bottom shell ripped and twisted. One of the pieces of the rudder stock was embedded in the rotary vane steering gear. All CP propeller blades were damaged beyond repair and had to be replaced. After some number crunching and discussions, Gorthon Lines AB decided to have its incapacitated vessel towed to Halifax Shipyard for repair in late November 2003.
Rotterdam to Construct Tide Pools Along Calandkanaal
The Port of Rotterdam Authority will be constructing 16 tide pools along the north side of Calandkanaal. These pools will be realised by embedding raw concrete basins in the banks of the waterway. The design of these tide pools, manufactured by ECOncrete, ensures that water is retained for a longer time in the pools during low tide. This turns the temporary pools into miniature ecosystems, which often occur naturally in rocky coastal zones but are largely absent in modern ports.
Lion Group to Study Steel Mill
According to reports, Malaysian conglomerate Lion Group is considering plans to build a $7b steel mill in Vietnam as part of its regional expansion. A Lion Group company has teamed up with Vietnam's state-owned Vinashin to conduct a feasibility study of the project, it said in a statement to the stock exchange late Tuesday. Once the feasibility study is completed and approvals are obtained, a consortium will be formed to undertake the steel plant project, said Lion Corp., the group's main investment holding company in Malaysia. The facility is earmarked for completion in the next 10 to 15 years, the statement said. Source: International Herald Tribune
News: China Preps To Take World Lead
Rapidly rising prices for steel plate in China may be taking the edge off the financial performance at some Chinese shipbuilders. But it will take a lot more than that to undermine shipyards' dramatic expansion plans aimed at ensuring the country's builders produce more ships than any other nation by 2015. In the short run, however, the country's relatively inexperienced builders seem to have failed to read the steel supply signs. They have found themselves caught out by a number of factors driving up ship steel prices. These have risen by almost 60% over the last 30 months or so and now stand close to $400 a ton. On the one hand, soaring…
Damen Delivers Third Shoalbuster to Kazmortransflot
National Maritime Shipping Company Kazmortransflot LLP has taken delivery of its third Damen Shoalbuster 2709, the last in the current order.The vessels are ideal for operations in the shallow waters of the Caspian Sea and are now playing a role in the development of oil fields in the Kazakh section of the inland sea and significantly expanding the range of services that Kazmortransflot can offer its clients. The contracts for the three Shoalbusters 2709 were signed in July 2017 between Damen, NMSC Kazmortransflot LLP and Al Hilal Islamic Bank, which arranged the Sharia compliant financing.
Seoul Shares Close at New High on Shipbuilding
South Korean stocks hit a fresh closing high Thursday as investors picked up shipbuilding and machinery shares, taking a cue from overnight gains in U.S. markets, analysts said. The South Korean won fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 14.98 points, or 0.94 percent, to 1,615.58. Volume was moderate at 445.7 million shares worth 4.67 trillion won (US$5.03 billion), with winners outpacing losers 544 to 226. Shipbuilders led the gain with top shipyard Hyundai Heavy Industries rising 6.53 percent to 285,500 won. Steel shares gained ground. No. 2 steelmaker Hyundai Steel advanced 2.45 percent to 48,150 won after a local brokerage raised its price estimate for the shares. Tech blue chips traded in negative territory.
Ship Values Rise
As the world has been beset by a wave of bad financial news -- from the looming financial crisis and credit crunch to the rapidly escalating cost of industrial materials, particularly steel -- Clarkson via its weekly Clarkson Index delivered some good news for a change, as the index, which is a measure of prices for all types of vessels, rose for the first time in more than three months. According to a Bloomberg report, this has buoyed the stock prices for some of the world's largest shipbuilders, including Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co.,
Conrad Declares Dividend
Conrad Industries, Inc. which provides both repair and new construction services at its five shipyards located in southern Louisiana and Texas, announced today that its Board of Directors has declared a quarterly dividend of $0.10 per share of common stock. The dividend is payable on June 14, 2016 to shareholders of record on May 24, 2016. Established in 1948 and headquartered in Morgan City, Louisiana, Conrad Industries designs, builds and overhauls tugboats, ferries, liftboats…
Vopak to Invest in Rotterdam Terminal
Vopak Rotterdam Botlek is investing in 63.000 cbm state-of-the-art stainless steel capacity (15 tanks) for the storage of Styrene and other hazardous chemicals. Styrene is a vital product used in manufacturing of a wide variety of consumer goods serving markets such as packaging, construction (for example isolation) and automotive. The new infrastructure will be fully insulated to allow for product temperature control and is designed to prevent any emissions to the environment.
US Court Approves Seadrill's Bankruptcy Exit Plan
A U.S. judge said on Tuesday he would approve Seadrill Ltd's plan to exit its Chapter 11 bankruptcy, in which the global offshore oil and gas drilling company would shed billions of dollars of debt and raise $1 billion in new investment. U.S. Bankruptcy Judge David Jones in Houston overruled two minor objections to the reorganization plan during a 90-minute hearing. The plan extends maturities on more than $5 billion of bank loans and converts about $2.3 billion in bond debt into equity in a reorganized Seadrill.
Alps Named Distributor of Petersen Stainless Rigging
Chicago based Alps Wire Rope Corporation has been appointed as a distributor for U.K.-based stainless steel shackle and wire rope fitting manufacturer Petersen Stainless Rigging Ltd. Stock is currently being held for immediate delivery from Alps’ Houston location of Petersen’s high-strength ‘PH’ stainless steel lifting shackles. All Petersen stainless lifting shackles are proof-load tested, marked and certified as standard meaning they are ready to be installed the minute you receive them. “[Alps has] four strategically placed locations in the USA: Houston; Saint Charles, Ill.; Harrisburg, Pa. and Alhambra, Calif., from which they are well equipped to provide excellent service.