China Iron Ore Imports Rise in September
Chinese iron ore imports rose in September, according to Reuters data, as its steelmakers ramped up output in the face of global trade tensions about the country's steel exports. Thomson Reuters Supply Chain and Commodity Forecasts data showed 82.5 million tonnes of iron ore, which is used in steelmaking, arrived at Chinese ports in September - up 2.5 percent on August and not far off July's near record levels. The data, based on ship tracking and port figures, does not completely tally with official Chinese customs figures, but typically doesn't vary from them by more than 4 percent. China, which consumes some two-thirds of global sea-born iron ore, will release official trade figures for last month on Oct 8.
Bulk Market Suffers Despite Record China Steel Output
BIMCO reported that China's average daily crude steel output reached a record 2.29 million metric tons in April as steel mills lifted production to meet seasonal demand, though signs of weakness in factory output and the property sector could feed through later in the year. Steel demand in China traditionally improves in Q2 as construction and manufacturing pick up with better weather. April's crude steel output of 68.84 million metric tons was below the record high of 70.25 million metric tons in March, according to China's National Bureau of Statistics.
Iron Ore Industry Wavers between Hope and Reality
If the price of the product your company produced had just experienced a 20 percent price surge in one day, its biggest jump ever, it would be reasonable for you to be overjoyed. But maybe not if you are an iron ore miner. This month's leap in Asian spot iron ore prices coincided with the annual Global Iron Ore and Steel Forecast conference in Perth, capital of Western Australia state and home to the iron ore operations of three of the world's four biggest producers. Spot iron ore soared to $62.60 a tonne on March 7 from a prior close of $52.40, a record in percentage terms and the biggest dollar move in four years. The problem for the insiders at the Perth conference is that as much as they would like to believe the move is sustainable, nobody really does.
A Bumpy Ride: China's New Maritime Silk Route
China has been pressing ahead with its ‘One Belt, One Road’ (OBOR) initiative – comprised of the Silk Road Economic Belt and the 21st-century Maritime Silk Road (pictured) – which was launched in 2015. Alibra Shipping Research is taking a look on China's plans. The ambitious scheme will build pipelines, ports and roads in areas home to about 65% of the world’s population and will affect about 25% of all the goods and services the world moves. The OBOR initiative aims to generate foreign demand to keep China’s excess steel mills…
Steel Prices Stay Firm
With global steel demand running at an unprecedented level, rapidly rising prices have been a constant headache for ship repairers, as well as ship builders, in recent months. And despite sharply higher steel output, there is little sign of any softening as the New Year dawns. According to the International Iron and Steel Institute (IISI), crude steel production for the 62 countries reporting their figures was 945m tonnes by the end of November, up 9% on the corresponding period one year earlier. Analysts were expecting total production to break through the billion tonne mark easily by the end of the year for the first time ever. IISI figures show that China accounted for the largest increase in output.
Belgium's CMB Claws Back Lost Ground in Q4 2013
CMB, Compagnie Maritime Belge, is a maritime group with its registered offices in Antwerp. Next to holding activities, the Group's main participating interests are active in the transport of dry cargo (Bocimar) and aviation (ASL Aviation). The group notes in its fourth quarter 2013 financial result that its executive committee has discussed the results recorded for the fourth quarter and the preliminary results for the full year 2013. The consolidated result for 2013 is estimated to be US$49.400.000 (2012: US$ 133.954.000).
Implications of the Japan Crisis
In the aftermath of the devastating earthquake that has hit Japan, fears are growing over the potential for radiation leaks from damaged nuclear plants. Equity markets have been hit while FFA prices have also sustained significant losses. With the situation still unfolding, the longer term impact of the disaster on commodity markets is unclear, although some initial conclusions can be drawn. In the short term, shipping has been disrupted with 13 ports reported by Reuters to have closed, with some of these unlikely to be operational for several months or even years. Initial assessments by Macquarie and the Steel Index put production at five large steel mills in the worst-affected region at risk, accounting for 15-18 million tonnes (Mt) of annualized steel production capacity.
Ship Recycling Prices Plunge 25%
Demolition Prices for elderly ships have fallen by a quarter in 2012 to date, and owners are encouraged to dispose of recycling candidates sooner rather than later, says Mark Williams of Braemar Seascope. Addressing the 7th Annual Ship Recycling Conference in London on 19th June, the Braemar Seascope Research Director told delegates that deflating international steel prices were likely to translate into lower offers for recycling tonnage in the coming quarters. Meanwhile, rapid reductions in the value of the Indian…
Cheap Prices Drive Record Chinese Imports
Crude oil, iron ore and soybean shipments hit monthly record. China imported record levels of crude oil, iron ore and soybeans in December as the country took advantage of cheap global prices to boost shipments, despite faltering demand growth at home. The surge in shipments helped improve China's trade figures, according to data published on Tuesday by the country's customs authority. Total imports still dipped 2.4 percent, down for a second month in succession, but they beat a decline forecast of 7.4 percent. "The surge in imports was largely due to the sharp drop in prices, which encouraged opportunistic restocking," said Nelson Wang, an energy analyst at CLSA Research.
S. Korea's Daebo Int. is 3rd Dry-Bulk Shipper to File for Bankruptcy This Month
A third dry cargo shipper has filed for bankruptcy this month following a collapse in freight rates to historic lows in what shippers call the worst market conditions since the 1980s. South Korea's Daebo International Shipping Co Ltd filed a court receivership, a form of corporate bankruptcy, on Feb. 11, mainly due to poor dry bulk market conditions, a company official said on Monday. It is the third known bulk shipper bankruptcy this month. Weaker demand from China and an oversupply of ships has led to the industry downturn, pushing the Baltic dry index - the industry benchmark for freight rates - to an all-time low this month. The index has slumped by nearly two-thirds in the past 15 months.
Baltic Index Slides for 4th Straight Day
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for the fourth straight session on Thursday, pressured by lower panamax vessel rates. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 3 points, or 0.3 percent, at 957 points. The panamax index dropped 31 points, or 3.4 percent, to 894 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell $253 to $7,192.
Baltic Index Inches Down
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, edged lower on Friday on weaker rates for smaller vessels. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down one point at 956 points. The capesize index rose 30 points, or 1.8 percent, to 1,668 points. Daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $221 at $12,239. Capesize rates were supported by hopes that steel demand in top consumer China would remain strong.
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…
CMB 2013 Results Positive, but Weaker than 2012
During its meeting of March 25, 2014, Belgian shipping company CMB’s board of directors approved the final annual accounts as per December 31, 2013. The consolidated result for 2013 amounts to $49,694,000, compared to $133,954,000 in 2012. Bocimar’s contribution to the 2013 consolidated result amounts to $3,467,000 ($53,196,000 in 2012). CMB pointed out that the capacity of newbuilding deliveries has far exceeded the growth in world seaborne trade for a number of years. Today…
Second Bulk Shipper Files for Bankruptcy
Dozens of iron ore and coal carriers idled as Baltic dry index falls to all-time low. A second dry cargo shipper has filed for bankruptcy following a collapse in freight rates that has forced many companies to idle vessels used to haul iron ore, coal and grain rather than hire out the ships at a loss. Weaker demand from China and an oversupply of ships has led to the worst industry downturn in 30 years, pushing the Baltic dry index - the industry benchmark for freight rates - to an all-time low.
Robust Commodity Imports Don't Tell the Whole China Story
The improved sentiment surrounding the outlook for China's demand for natural resources is being reflected by rising imports for some major commodities, but as usual it pays to be wary when interpreting the numbers. Customs data released this week shows strong import growth in the first two months of the year in copper and crude oil, a more modest expansion in iron ore and a surge in imports of alumina and bauxite, the main raw materials used to make aluminium. Taken at face value this lends support to the view that China is heading for a better spring season after a gloomy autumn and winter cast a pall over the outlook for demand in the world's largest consumer of commodities.
NGO Slams Shipper but Four Alang Recyclers Go Green
The NGO Shipbreaking Platform and Transport and Environment (T&E) have criticized Maersk Group’s decision to beach their end-of-life vessels in Alang, India. But, Four of the 167 ship recycling yards have won compliance status with a global regime that seeks to ensure that redundant ships are disposed of safely and in an environmentally sound manner, says a report in the Livemint. The recycling yards are located on the coast of Alang-Sosiya in Gujarat’s Bhavnagar district, the world’s largest stretch of ship-breaking beaches.
The Economics of Ship Breaking & Scrapping
Sometimes being an industry supplier offers interesting insights – your business is touched by the ups and downs of the charter market, but you are never so involved in it that you lose sight of the big picture. Some of our clients have been hit hard by the market’s general downturn; one client I visited last month began 2008 with 41 maritime software licenses for their vessels – just seven remain today. “We just sold another ship yesterday,” he said, and then after a pause: “Please spare me the update costs for this one, it won’t receive any.” Of course, I nodded.
POSCO to Invest to Boost Steel Plate Output
Reuters said that POSCO Co. Ltd. said on Friday it would invest a total of $2b to boost output of steel plates for ships as the booming shipbuilding industry led to higher demand for the product. POSCO , the world's fourth-largest steel maker, said in a statement it would spend $1.96b to build a new domestic plant and related facility to produce steel plates. The plant, which will have a capacity of 2 million tonnes a year, will be completed by July 2010. With the new plant and planned upgrades to its existing facility, POSCO plans to raise its steel plate output to 7 million tonnes a year in 2011 from 3.8 million estimated for this year, the company said. The decision comes as surging demand for steel plates from shipbuilders and heavy industry companies keep prices firm.
Baltic Index Surges on Strong Demand for Larger Vessels
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, notched its biggest one-day percentage gain in five months on Thursday, buoyed by soaring demand for larger vessels. The index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was up 42 points, or 4 percent, at 1,092 points – the highest since April 28. "We are seeing a seasonal uptick ... This time of the year you basically see the rates improve," said Herman Hildan, analyst at Clarksons Platou Securities.
Shipbuilders to Demand More Steel Plates
According to Korea Times, South Korean shipbuilders’ demand for steel plates is expected to continue to rise next year due to an increase in orders, an industry body said Monday. The Korea Shipbuilders’ Association forecast the industry’s demand for steel plates will reach 5.4 million tons next year, up 300,000 tons from this year. Industry sources predict the demand for steel plates is likely to amount to 6 million tons by 2008, a steady increase from 4.6 million tons in 2004. South Korea, which dominates the industry’s global market, has the world’s top three shipbuilders: Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co., and Samsung Heavy Industries.
Increased Demand for Steel Plates
South Korean shipbuilders’ demand for steel plates is expected to continue to rise next year due to an increase in orders, according to a Korea Times report. The industry’s demand for steel plates will reach 5.4 million tons next year, up 300,000 tons from this year. The demand for steel plates is likely to amount to 6 million tons by 2008, a steady increase from 4.6 million tons in 2004, says the report. South Korea is home to the world’s top three shipbuilders: Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co., and Samsung Heavy Industries. Source: The Korea Times
Shipbuilders Struggle Over Steel
Shipbuilders and Japanese steelmakers are struggling to hammer out the differences on steel plate prices as the sellers insist on a 17 percent raise to $680 per metric ton. Korean shipbuilders including Hyundai Heavy Industries Co. are demanding a price cut from the current $580 to $480 per metric ton for the six months from October. "The talks (on price settlement) could go on until early October," said an official from the Korea Shipbuilders' Association. Steelmakers are pushing to lift prices in the face of rising material costs. Prices of iron ore, the key material for steel, continued to climb 17 percent this year, after jumping 71.5 percent in 2005 as a result of oligopoly trading by global iron ore miners and burgeoning demand from China.