Maritime News

U.S. coal consumption of 8% dive last week, Genscape Reports

maritime news — Sat, 13 Mar 2010 06:44:44 +0000

U.S. coal consumption fell 8 percent in the week ended yesterday from the previous seven-day period, according to an analysis by Genscape Inc.

Power plants in the East reduced coal use by 10 percent while
consumption in the West gained 1.8 percent, the data provider said.
Overall coal use to generate electricity was down 6.7 percent from a
year earlier, Genscape said.

Genscape says it monitors coal use in real time at U.S. power producers
with a device that’s installed at the plants.

The U.S., which holds the world’s largest reserves of coal, relies on
the fuel for about half of its power generation, compared with about 20
percent for natural gas.

Source: Bloomberg

U.S. coal consumption of 8% dive last week, Genscape Reports

maritime news — Sat, 13 Mar 2010 06:44:44 +0000

U.S. coal consumption fell 8 percent in the week ended yesterday from the previous seven-day period, according to an analysis by Genscape Inc.

Genscape says it monitors coal use in real time at U.S. power producers
with a device that’s installed at the plants.

The U.S., which holds the world’s largest reserves of coal, relies on
the fuel for about half of its power generation, compared with about 20
percent for natural gas.

Source: Bloomberg

UAE steel prices stage a gradual recovery

maritime news — Sat, 13 Mar 2010 06:44:43 +0000

Steel prices in the UAE have reached Dh2,150 a tonne this month after increasing every month since last December. This growth has brightened prospects in terms of the capacity of mills to operate at full capacity,

according to Danube Building Materials, a company dealing in
construction, building materials and shop-fitting.

Local steel suppliers are expected to reinforce their presence in the
regional market as scrap prices continue to climb, costs of raw
materials steadily increase, and billet supplies remain limited. Further
price increases are likely in the coming months, Danube says.

The steady price increase in the region, however, is not in tandem with
the steep levels at which global steel prices are rising. This indicates
that the regional steel market is becoming less sensitive to global
market forces.

“The local steel market required up to 400,000 tonnes of steel per month
in the years prior to the downturn, but this has declined to 250,000
tonnes after the global downturn,” Rizwan Sajan, Chairman, Danube
Building Materials, said.

UAE steel prices climbed from Dh1,780 per tonne last November-December
to Dh1,850 in January, Dh1,950 in February and Dh2,150 this month.

Comparatively, global steel (mill) prices have gone from $490 (December
2009) to $520 (January 2010) to $535 (February 2010) to $570 (March
2010). Latest estimates indicate that a price of $600 is imminent.

The region’s indifference to the rate of increase in global prices is
partly due to weak demand, as a result of some major projects in the
Middle East being delayed or cancelled.

Further, liquidity remains tight, with most contractors and developers
unable to commit to immediate payments to suppliers in the region.

According to Mesteel.com, rebar prices grew $27 in recent months. The
outlook for steel in India continues to be “positive” for 2010 with
consumption expected to grow between 6-9 per cent this year, according
to Karvy Comtrade.

Sajan said: “The increasing role played by GCC-based steel suppliers,
which has curbed the flow of Turkish steel into the country, is also an
indicator of the increasing growth potential for the regional industry.
We remain optimistic that steel prices in the region will increase and
reach their ideal level, which is somewhere around Dh2,300 to Dh2,400
per tonne.

Capacity

“This will provide a boost to the mills, which have been affected by the
recession to gain full operation capacity and thereby stabilise the
market.”

At present, top UAE-based suppliers Emirates Steel Mills and Qatar Steel
Corporation dominate the regional supply chain, delivering a combined
175,000 tonnes (125,000 tonnes and 50,000 tonnes, respectively), to the
UAE.

With scrap traders holding on to existing stockpiles and a lower
collection of scrap over the past few months, steel prices in the region
have increased by almost 12 per cent in the last month.

While billet supplies remain another issue in the region, Danube is
confident that the current steel prices are a realistic reflection of
the market and bode well for the remainder of the year.

Sajan said: “The global market has seen steel prices drop to an all-time
low of $390 back in 2008, while prices in the region had hit the bottom
price of Dh1,750 per tonne in 2009.

“During these periods, the steel industry has had major difficulties
coping with the closure or slowing down of mills.

“The increase in prices we are monitoring in the UAE and the rest of the
region is suggestive of positive developments.”

Source: GulfNews

UAE steel prices stage a gradual recovery

maritime news — Sat, 13 Mar 2010 06:44:43 +0000

according to Danube Building Materials, a company dealing in
construction, building materials and shop-fitting.

UAE steel prices climbed from Dh1,780 per tonne last November-December
to Dh1,850 in January, Dh1,950 in February and Dh2,150 this month.

The region’s indifference to the rate of increase in global prices is
partly due to weak demand, as a result of some major projects in the
Middle East being delayed or cancelled.

Further, liquidity remains tight, with most contractors and developers
unable to commit to immediate payments to suppliers in the region.

Capacity

“This will provide a boost to the mills, which have been affected by the
recession to gain full operation capacity and thereby stabilise the
market.”

With scrap traders holding on to existing stockpiles and a lower
collection of scrap over the past few months, steel prices in the region
have increased by almost 12 per cent in the last month.

While billet supplies remain another issue in the region, Danube is
confident that the current steel prices are a realistic reflection of
the market and bode well for the remainder of the year.

Sajan said: “The global market has seen steel prices drop to an all-time
low of $390 back in 2008, while prices in the region had hit the bottom
price of Dh1,750 per tonne in 2009.

“During these periods, the steel industry has had major difficulties
coping with the closure or slowing down of mills.

“The increase in prices we are monitoring in the UAE and the rest of the
region is suggestive of positive developments.”

Source: GulfNews

Rio Tinto to explore possible JV with Chinalco

maritime news — Sat, 13 Mar 2010 06:44:42 +0000

Australian mining giant Rio Tinto is interested to set up a joint venture with Aluminum Corp of China, the largest alumina producer in the country, sources reported.

Reportedly, Rio Tinto CEO Tom Albanese will meet executives of Chinalco
during a trip to China in late March to discuss the possibility of the
JV.

It is also said that any deal between the two firms would involve
offshore assets, possibly in Mongolia or West Africa.

Analysts said that a joint venture with Chinalco would provide the
Australian company with an excellent opportunity to get Chinese funding.

Chinalco, the largest shareholder of Rio Tinto, holds a 9% stake in the
Australian company.

Source: China Knowledge

China to invest on stalking, in the mines of South Africa

maritime news — Sat, 13 Mar 2010 06:44:42 +0000

Like India’s steel giants, China is also showing interest in investing in South Africa’s mining sector. According to the minister of mines in South Africa, China had shown strong interest in investing in the African nation’s mining sector.

China, Africa’s biggest emerging market partner, has been investing in
the continent’s mining and energy sectors.

China is interested in manganese, platinum and uranium. But S Africa is
also cautious to see if their investment is going to benefit South
Africa. It is critical for the country to ensure its own interest.

The Chinese were keen to invest in processing of minerals in the
country, a key priority of South Africa’s government, which hopes to
extract as much value from its mines as possible and boost job creation.

Investor appetite for South Africa’s mining sector, one of the country’s
major employers, was high, and the country was keen to attract just as
many investors as in mining peers Australia and Canada.

Nationalisation of mines in South Africa, the world’s biggest producer
of platinum and a major gold producer, was not government policy and
would not happen, but rather it was a debate being pushed by a minority.

Rather than grabbing mines, the country would run a state-owned firm
focused on strategic minerals such as coal and uranium, which were
required for power generation. The minister said by mid-April the
ministry would complete the consolidation of the assets under one
company.

A key concern for investors was the issuing of mining rights by the
State. The minister said mining rights would now be issued in six months
compared to more than two or three years in the past. Prospecting
rights would be issued in three months, she added.

South Africa had sufficient power this year, including during the soccer
World Cup, and the blackouts that crippled the mining industry in early
2008 would not be repeated this year.

Source: Commodity Online

Platts launches daily coking coal costs and price reports

maritime news — Sat, 13 Mar 2010 06:44:41 +0000

Platts today launched the world’s first daily metallurgical coal assessments, which the company said would provide assistance in determining contract prices.

According to the company, the daily assessments will a demand from both
miners and the steel mills for independent daily spot evaluations in the
burgeoning Asian market.

Platts will provide two assessments, one
dealing with hard coking coal loading in Australia for any destination
and the other with coal delivered into China from any source.

These
will complement the company’s existing monthly coking coal assessments
and its IODEX iron ore assessments.

“These new assessments, along
with a dry bulk freight price from Australia to China, allow us to
deepen our analysis of blast furnace economics, particularly those in
China,” said Platts’ global director of steel Francis Browne.

“It is
our hope the price transparency provided by Platts for this vital steel
making ingredient, will meet the global industry’s need for comparative
valuations of coking and other metallurgical coals.”

The Hard Coking
Coal Free On Board (FOB) Australia and Hard Coking Coal Cost and
Freight (CFR) China assessments will capture the value of the material
in US dollars per dry metric ton.

The company will also launch a
daily dry bulk freight assessment, representing the cost of freight for
cargoes carried on Panamax class vessels from Australia to China, as a
standard for the price assessment process.

All three assessments will
be published in Steel Markets Daily, Coal Trader International,
International Coal Report and Platts’ Metals Alert.

Source: Mining
Australia

Murchison lift production, but posts H1 loss on lower ore prices

maritime news — Sat, 13 Mar 2010 06:44:41 +0000

Murchison Metals Ltd has posted a first half loss of $20.3 million, despite record iron ore exports by its 50 per cent-owned subsidiary Crosslands Resources.

The result for the six months to December 31 compares to a profit of
$17.5 million in the previous corresponding period.

Sales revenue fell 24 per cent to $73 million, from $96 million for the
first half of 2008/09, on lower ore prices and the stronger Australian
dollar.

Murchison said iron ore prices fell by an average 29 per cent compared
with the first half of 2008/09.

The first half result was also dragged down by $32.4 million in costs
for feasibilities studies for its 50 per cent-owned Oakajee port and
rail project in Western Australia, as well as a blowout in exploration
costs for Crosslands.

Crosslands, which owns the Jack Hills iron ore mine in WA’s mid-west
region, increased exports by 21 per cent to 920,000 tonnes.

Murchison said it was debt-free and had cash reserves of $102.4 million
at the end of December.

Source: AAP

Germany is pushing for reforms to coal and iron ore volumes

maritime news — Sat, 13 Mar 2010 06:44:40 +0000

Australia coal and iron ore producers are leading an international push to radically overhaul the pricing system for their commodities.

The price of coking coal and iron ore have traditionally been set on a
yearly contract basis, known as benchmarking.

But as demand for these vital ingredients of steel soars, miners want to
receive much the same for their commodities as that offered on spot
markets.

The spot prices for coal and iron are almost double that of the contract
prices.

Resources analyst Tony Parry says it’s an untenable situation, and
international steel mills will eventually have to agree to changes.

“Logic would suggest that there has to be a better pricing mechanism
when the prices they’ve set in the benchmark are approximately half of
the price of those that are going through on the spot market.”

Source: ABC

From iron ore, coal exports to rise in Q4-09

maritime news — Sat, 13 Mar 2010 06:44:39 +0000

Australian Bureau of Agricultural and Resource Economics (ABARE) on Friday said country’s iron ore and coal exports hit record levels in the final quarter of last year thanks to strong demand from Asia.

In a report, ABARE said iron ore exports reached 98 million tones and
coal shipments passed 74 million tones, mainly to South Korea, Japan and
China.

“The record volumes of bulk commodity exports in the December quarter
were underpinned by demand from steel mills and power stations in Japan,
the Republic of Korea and China,” said ABARE.

Australian officials have forecast a new mining boom lasting years,
thanks to the mass industrialization and urbanization projects under way
in some Asian countries.

The record exports came despite a nine per cent rise in the value of the
Australian dollar, ABARE added.

Energy and mineral export earnings rose one per cent to $28 billion in
the quarter.

Source: Commodity Online

BHP, Anglo, Xstrata Coal ship 10,000 miles on China price hike

maritime news — Sat, 13 Mar 2010 06:44:28 +0000

BHP Billiton Plc, Anglo American Plc and Xstrata Plc are shipping coal 10,000 miles to China from their Cerrejon mine in Colombia for the first time this year because of surging demand and rising prices in Asia.

Cerrejon, the world’s largest open-pit mine of coal for export, started
sending coal shipments through the Panama Canal to China after prices
became “much better” than those in Europe, Leon Teicher, the venture’s
chief executive officer, said in an interview. Cerrejon may also make
its first sales to India this year, he said.

China’s accelerating economic growth is stoking demand for coal to fuel
power plants and steel mills. Prices 45 percent higher than in Europe
make it worthwhile to transport the fuel to ports that are twice as far
as European harbors such as Rotterdam. China’s coal imports tripled last
year to 126.6 million metric tons, according to the China General
Administration of Customs.

“There is a transition,” Teicher said in a March 10 interview in Bogota.
“Prices in the Pacific are much higher than they have ever been
relative to Europe.”

Thermal coal used by power utilities climbed 22 percent over the 12
month through March 5 to $107.7 in Qinhuangdao, a port in northeastern
China, from $88 a year earlier, according to data from McCloskey Group
Ltd. The price was 45 percent higher than the $74.4 per ton for coal
delivered to northwestern Europe.

Chinese Growth

China will be a net importer of coal this year even as its own
production climbs, Teicher said. The Asian nation’s gross domestic
product expanded 10.7 percent last quarter, the fastest since 2007. Last
week, central bank Governor Zhou Xiaochuan said policies aimed at
stimulating the economy must end “sooner or later.”

“I don’t believe that China is a bubble,” Teicher said. “China has
arrived.”

Production at Cerrejon, located on the northeastern edge of Colombia,
will rise to 31 million to 32 million tons of coal this year, after
falling last year as demand waned in Europe, he said. BHP, Anglo
American and Xstrata each own a third of the mine.

Annual output capacity may be expanded to 40 million tons at a cost of
$800 million to $1 billion once “the market will take that expansion,”
Teicher said. “Right now is not yet the time.”

Last year, Cerrejon sold most of its coal to Europe, the U.S. and Latin
America.

Demand in Asia will help maintain the price of the fuel and may lead to
gains, he said.

Source: Bloomberg

BHP, Anglo, Xstrata Coal ship 10,000 miles on China price hike

maritime news — Sat, 13 Mar 2010 06:44:28 +0000

“There is a transition,” Teicher said in a March 10 interview in Bogota.
“Prices in the Pacific are much higher than they have ever been
relative to Europe.”

Chinese Growth

“I don’t believe that China is a bubble,” Teicher said. “China has
arrived.”

Annual output capacity may be expanded to 40 million tons at a cost of
$800 million to $1 billion once “the market will take that expansion,”
Teicher said. “Right now is not yet the time.”

Last year, Cerrejon sold most of its coal to Europe, the U.S. and Latin
America.

Demand in Asia will help maintain the price of the fuel and may lead to
gains, he said.

Source: Bloomberg

Wilhelmsen Ships Service dispatches helicopters cell from Shanghai to Baltimore

maritime news — Sat, 13 Mar 2010 06:44:27 +0000

The Maritime Logistics department at Wilhelmsen Ships Service’s office in Shanghai has just completed the dispatch of a helicopter frame from Shanghai port to Baltimore, Maryland, USA.

The 2000 kg helicopter frame was shipped on a RO-RO vessel on 22
February 2010. Wilhelmsen Ships Service undertook of all the procedures
from shore to ship. The company managed the terminal handling, lashing,
the RO-RO space chartering and the customs documentation for the
customer. The shipment marks the start of a cooperation with the
internationally known helicopter manufacturer and it is expected that
Wilhelmsen Ships Service will gain further business to deliver more
helicopter frames for the corporation during this year.

Victor Xia, Logistics Manager for Wilhelmsen Ships Service in Shanghai
comments “This is the latest of several new contracts in the project
logistics business area for Wilhelmsen Ships Service’s Shanghai office
which has also included a number of truck shipments. Over the past year,
there has been impressive growth in this area, despite the economic
challenges of 2009.”

Source: Wilhelmsen Ships Service

Wilhelmsen Ships Service dispatches helicopters cell from Shanghai to Baltimore

maritime news — Sat, 13 Mar 2010 06:44:27 +0000

The Maritime Logistics department at Wilhelmsen Ships Service’s office in Shanghai has just completed the dispatch of a helicopter frame from Shanghai port to Baltimore, Maryland, USA.

Source: Wilhelmsen Ships Service

GE Shipping: Fair winds ahead

maritime news — Sat, 13 Mar 2010 06:44:26 +0000

With activities picking up after a huge lull, shipping companies have started to garner attention amongst gain. Great Eastern Shipping (GE) reported 6.6% growth in revenues in the December 2009 quarter to touch Rs 706.3 crore.

Higher operating days and firming of freight rates in the December 2009
quarter, especially over the September 2009 quarter helped it to
outperform its peers. Revenue days rose to 3,402 days in December 2009
quarter as against 3,268 days in the September 2009 quarter.

Excluding the extraordinary gain from the sale of a vessel to the tune
of Rs 53.8 crore in the September 2009 quarter, the net profit in the
December 2009 quarter has been higher by 72.6%. TCE per day or Time
Charter Equivalent time charter equivalent, a standard industry measure
of the average daily revenue performance of a vessel for dry bulk
carriers as well as product carriers increased to Rs 20,964 and Rs
19,131 as compared to Rs 17,065 and Rs 18,865 in the September 2009
quarter.

Thanks to this, after dipping to 25.4%, operating margins improved to
28.2% in the December 2009 quarter. Overall, TCE for product tankers
increased while it dropped with respect to crude tankers In the case of
dry bulk vessels.

Moreover, GE is ramping up its fleet, especially in the offshore
segment, which will be scaled up to 27 vessels in financial year 2011-12
from the present 17 vessels. The total fleet size will increase to 74
vessels in 2011-12 from the present 58 vessels. Baltic indices have
risen 60-100% from the lows of 2009, but are below historical averages.
According to analysts at Morgan Stanley, as global growth gains ground
led by recovery in OECD countries, charter rates will rise. Global
ton-mile demand has historically tracked GDP growth. Morgan Stanley
analysts reckon that global ton-mile demand will pick up, driven by
recovery in GDP growth.

Moreover, demolition driven by the MARPOL (Marine Pollution) convention
will moderate the increase in tanker capacity, in reckon analysts.

Even this is expected to support charter rates as supply would tend to
remain constrained in the trade.

Source: Financial Express

GE Shipping: Fair winds ahead

maritime news — Sat, 13 Mar 2010 06:44:26 +0000

Moreover, demolition driven by the MARPOL (Marine Pollution) convention
will moderate the increase in tanker capacity, in reckon analysts.

Even this is expected to support charter rates as supply would tend to
remain constrained in the trade.

Source: Financial Express

Samudera Shipping announces disposal of subsidiaries, Silkargo LLC

maritime news — Sat, 13 Mar 2010 06:44:25 +0000

The Board of Directors (the “Board”) of Samudera Shipping Line Ltd (the “Company” or “Samudera”) wishes to announce that on 8 March 2010, the Company’s wholly-owned subsidiary, Silkargo Logistic (Singapore) Pte Ltd (the “Seller”),

has entered into a Sale and Purchase Agreement with PT. Silkargo
Indonesia (the “Purchaser”) for the disposal and purchase of the
Seller’s 49% equity interest in the issued and paid-up share capital of
Silkargo LLC (“Silkargo”), a company registered with the Department of
Economic Development, Dubai, United Arab Emirates (the “Disposal”), for a
consideration of US$380,000 (the “Purchase Consideration”). Following
the Disposal, Silkargo will cease to be a subsidiary in the Samudera
group of companies (the “Group”).

The rationale for the Disposal, the term and condition of which have
been reviewed and approved by the Audit Committee of the Company, is
that the Group intends to focus on its core business activities, i.e.
container shipping and industrial shipping, and exit from its current
logistics business. The Group therefore disposed off its logistics
activities carried out by Silkargo. Silkargo was established by the
Group in 2003 to run logistics business in the United Arab Emirates.
Silkargo’s activities include freight clearing services, cargo loading
& unloading services, cargo packaging, and general warehousing
service.

The Purchase Consideration was arrived at on a willing-buyer and
willing-seller basis, having regard to Silkargo’s net tangible assets of
approximately US$380,000 as at 5 January 2010.

The Purchaser will pay the Purchase Consideration to the Seller in cash
on the completion date of the Disposal.

The Disposal is not expected to have any material impact on the net
tangible assets or earnings per share of the Company for the current
financial year.

The Purchaser is a subsidiary of PT Samudera Indonesia Tbk. (“PTSI”), a
substantial shareholder of the Company. Randy Effendi, Chairman of the
Company, is also a President Director of PTSI and President Commissioner
of the Purchaser. Hamdi Adnan, a Director of the Company, is a Director
of PTSI and Commissioner of the Purchaser. Masli Mulia, a Director of
the Company, is also a Director of PTSI and President Director of the
Purchaser.

Save as disclose above, none of the other Directors or the other
substantial shareholders of the Company has any interest, direct or
indirect, in the above transaction.

Source: Samudera Shipping Line Ltd

Samudera Shipping announces disposal of subsidiaries, Silkargo LLC

maritime news — Sat, 13 Mar 2010 06:44:25 +0000

The Purchase Consideration was arrived at on a willing-buyer and
willing-seller basis, having regard to Silkargo’s net tangible assets of
approximately US$380,000 as at 5 January 2010.

The Purchaser will pay the Purchase Consideration to the Seller in cash
on the completion date of the Disposal.

The Disposal is not expected to have any material impact on the net
tangible assets or earnings per share of the Company for the current
financial year.

Save as disclose above, none of the other Directors or the other
substantial shareholders of the Company has any interest, direct or
indirect, in the above transaction.

Source: Samudera Shipping Line Ltd

Mercator to extend dredging, bulk and tanker segments

maritime news — Sat, 13 Mar 2010 06:44:24 +0000

Mercator Lines is planning to increase its presence in a number of new markets including the bulk, tanker and dredging segments. Reports from India say Mercator Lines Ltd plans to expand in the dredging, bulk and tanker segments in the next 12-18 months.

Expansion in its coal mining capacity is also on the cards.

“We are trying to increase our presence in the other industries, the
idea is in the next three to four years, our income from the other
segments should be more than the shipping segment. But the shipping
segment is also increasing. It will also depend on the kind of contracts
that we sign. If contracts increase, our investments will also
increase,” said HK Mittal, executive chairman, Mercator Lines.

Source: Dredging news Online / Clarkson

Mercator to extend dredging, bulk and tanker segments

maritime news — Sat, 13 Mar 2010 06:44:24 +0000

Expansion in its coal mining capacity is also on the cards.

Source: Dredging news Online / Clarkson

Maritime News

U.S. coal consumption of 8% dive last week, Genscape Reports

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U.S. coal consumption of 8% dive last week, Genscape Reports

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